61.8% of US-listed IPO activity on NYSE in 2017 YTD

34 issuers have listed on the New York Stock Exchange (NYSE) in 2017 YTD (for $14.8bn), the highest since 2014 YTD (41 IPOs) and accounting for 61.8% of all US-listed IPO activity — the highest share on record. In comparison, 21 IPOs listed on the Nasdaq (for $5.0bn) so far this year. This is a stark contrast to the bear market at the start of 2016, when only two IPOs (for $1.4bn) had priced on the NYSE over the same period, versus 16 IPOs on the Nasdaq (for $2.2bn). In total, $20.3bn has been raised via 55 IPOs on all US exchanges, giving 2017 the best start since 2014 ($22.9bn via 110 IPOs).

Bigger deals boost activity on NYSE

Multiple factors have contributed to the increase in NYSE IPO activity, including a significant increase in average deal size for US-listed IPOs to $370m from $204m in 2016 YTD. Historically, bigger IPOs have gravitated to the NYSE, and 2017 is no exception. Cross-border IPOs have also made a comeback on the NYSE, with six priced so far in 2017 (for $1.1bn), the highest since 2011 YTD (11 IPOs) — compared to no cross-border listings in the previous two YTD periods. In contrast, two cross-border IPOs listed on the Nasdaq in 2017 YTD, on par with 2016 YTD.

The shift has also been affected by sector developments. A slowdown in healthcare to seven IPOs this year, partially due to the biotech window closing, has contributed to the drop in Nasdaq activity. In the five YTDs prior to 2017, 92 healthcare issuers listed on the Nasdaq and only four on the NYSE. Meanwhile, technology has been more active on NYSE this year with seven IPOs versus two on Nasdaq, helped by momentum from 2016 IPOs that are trading on average 33% above pricing. Oil & gas, historically a hot sector for the NYSE, also recorded a better start this year thanks to higher oil prices. The sector already saw seven IPOs on the NYSE in 2017 YTD, compared to no IPOs until Q4 2016 across all US exchanges due to tumbling crude-oil prices at the start of 2016.

The average size of US-listed IPOs in 2017 YTD reached $370m, the highest since 2008 and the fourth highest on record.

Pipeline picks up for Nasdaq

There are currently 34 IPOs in the 180-day SEC-registered backlog, expected to raise a total of $3.1bn. Of these, 15 are in line for the Nasdaq and 12 for the NYSE, while the remaining seven have yet to pick an exchange. Oil & gas leads the way with six expected IPOs, continuing the strong trend this year with eight IPOs already priced (for $2.3bn). Technology and healthcare follow with five and four, respectively, and eight of them are set to offer the Nasdaq a boost after this year’s slow start.

Source: Dealogic, as of May 8, 2017