The ever-rising U.S. stock market has provided an excellent backdrop for what has started out to be the best quarter for IPO issuance since before the financial crisis. Since July 1st, 28 companies have raised over $5.2 billion in new listings, the fastest activity since 2007 according to CNBC. Excellent stock performance after the IPO certainly helps to encourage future listings, something that the market has thus far provided.
IPOs this year have gained an average of 13.2 percent on their first day of public trading and are up on average just over 30 percent from their listing price, Dealogic said.
Oil and gas master limited partnerships as well as biotech start-ups have been some of the most active players in new listings. The continued levitation of the market and IPO’s alike are expected to provide an opportunity for big private equity players to spin out massive real estate holding they took on right before the financial crisis.
The following charts from Renaissance Capital track U.S. IPO activity and performance: