Renaissance Capital's 1Q 2013 US IPO Review
US IPO volume was stable in the 1Q13, with 31 deals raising $7.6 billion in proceeds. Though overall issuance levels were in line with recent quarters, there was an unusual mix shift toward yield plays, which accounted for nearly half of the quarter's deals, while quintessential small-cap growth stories were few and far between. Performance dipped but still outpaced broader market indices, with an average gain of 18%. Returns would have been even higher had it not been for the spike in dividend-paying IPOs, which were comprised of mature companies, REITs and MLPs, and generally showcased lackluster first-day pops. Though the US IPO market continued to trend sideways in the first quarter, we expect a pickup in activity through 2013 given the rise in behind-the-scenes filing activity and ongoing strength in the overall equity markets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.