US IPOs are gaining steam in Q2. Though American private equity firms have largely remained on the sidelines thus far, PE-backed Viking Holdings became the largest IPO of 2024 earlier this month. That could mark a turning point for the sector’s involvement in a burgeoning recovery in public listing activity. The pace and size of listings are expected to continue gaining momentum throughout the rest of the year and into 2025, but the timing of some offerings could be impacted by the upcoming US Presidential election.
Related ETF: Renaissance IPO ETF (IPO)
Funds raised from US IPOs in Q1 doubled YoY, but the number of listings accelerated only slightly from its plodding pace in the same quarter of 2023. This year’s second quarter looks to be much more promising, as volume has surged throughout April and the early portion of this month. Bloomberg data indicates more than $1 billion has been raised by public listings across each of the five weeks to May 6. Further, 32 offerings have been priced thus far in the quarter, compared to a total of 25 US listings throughout the entirety of Q1.
A critical pillar of any potential IPO market recovery will be an expansion of private equity (PE) exits, which have fallen off significantly over the past couple of years. Per S&P Global data, global PE-backed IPOs tallied 220 in 2021, but fell by almost two-thirds to just 79 in 2022. That figure declined further to 72 in 2023 despite picking up steam toward the end of the year. In the US, specifically, PitchBook data shows. PE firms took just…
To read the complete Intelligence Briefing, current All-Access clients, SIGN IN All-Access clients receive the full-spectrum of MRP’s research, including daily investment insights and unlimited use of our online research archive. For a free trial of MRP’s All-Access membership, or to save 50% on your first year by signing up now, CLICK HERE
