2017 YTD led by oil & gas comeback

So far this year, $5.6bn has been raised via 16 IPOs on US exchanges, giving 2017 the best start since 2014 ($8.2bn via 41 IPOs). Strong aftermarket performance from IPOs in 2016 has built momentum into this year and reassured investors, with listings trading on average 30% above pricing. In particular, enthusiasm has been high for industrials, due to factors such as accelerated growth, planned infrastructure spending and tax cuts, and an increase in oil prices. Two IPOs from the oil & gas sector, which priced for a combined $1.1bn in January 2017, have led to a higher rebound in the bull market.

12 day wait for first IPO of 2017 versus 33 days in 2016

Tumbling crude-oil prices, slowing economic growth, and high volatility all contributed to a quiet US equity market at the start of 2016. After an uneventful month, the first IPO was priced on February 2 by Editas Medicine ($109m). Technology, a major sector for US-listed IPOs, emerged in April amid concerns over pre-IPO valuations with SecureWorks ($112m). Only in June did markets see the first unicorn IPO of the year from Twilio ($173m). 2017 is off to a significantly faster start, with the year’s first IPO on January 12 priced by Gores Holding II ($400m) and the first unicorn announced for listing in February.

Snap to price first technology IPO this week

Snap’s announced debut for March 2 on the New York Stock Exchange will be a barometer for whether or not current momentum in the US IPO market will continue. The company is in line to raise up to $3.0bn, the amount offered by Facebook in 2013 for outright purchase. With unique multi-class shares that lack voting rights, Snap’s IPO will be the largest technology listing on a US exchange since Alibaba raised $25.0bn in September 2014.

Data source: Dealogic, as of February 27, 2017