Volume of IPOs Remains Below Average Even as Markets Reached New Highs
MOUNTAIN VIEW, CA--(Marketwired - February 08, 2018) - The subdued trend in the market for tech and life sciences IPO activity continued in the second half of 2017 despite a slight increase in the number of companies completing offerings in the second half of the year. These and other findings are noted in Fenwick & West's latest IPO report released today.
The report, Key Metrics for Technology and Life Sciences Initial Public Offerings 2017, analyzed 65 technology and life sciences IPOs completed in 2017. It is authored by Fenwick partners Jeffrey Vetter and Daniel Winnike.
Of the 65 IPOs last year, 38 offerings (13 tech, 25 life sciences) were completed in H2 2017, compared to 27 (12 tech, 15 life sciences) in H1 2017. In 2016, just 51 tech and life sciences companies went public. Of those, 31 did so in the second half of the year and 20 in the first half.
"As anticipated, IPO market activity improved slightly in the second half of 2017 although technology companies accessing private sources of capital continued to delay their entry into public-company status for longer periods than in the past," Winnike said. "The fact that all but one of the technology IPOs completed in the second half of 2017 was done in the fourth quarter suggests momentum in the market heading into 2018."
The average offering proceeds in H2 2017 were $223.5 million for technology companies and $96.3 million for life sciences companies.
"In line with prior periods, the size of tech offerings was notably larger than their life sciences counterparts, but life sciences offerings closed at double the rate of tech in the second half," Vetter said.
Insights for H2 2017 from the latest Fenwick IPO survey include:
Fueled by Life Sciences, IPO Activity Up Slightly in H2 2017
Tech IPO Valuations Higher than Life Sciences
Tech Continues to Embrace Dual-Class Structures
Stable Pricing Environment for H2 2017 Offerings
Insider Participation in Life Sciences
Pricing Delays Common in H2 2017
About Fenwick & West
Fenwick & West LLP provides comprehensive legal services to ground-breaking technology and life sciences companies -- at every stage of their lifecycle -- and the investors that partner with them. We craft innovative, cost-effective and practical solutions on issues ranging from venture capital, public offerings, joint ventures, M&A and strategic relationships, to intellectual property, litigation and dispute resolution, taxation, antitrust, and employment and labor law. For more than four decades, Fenwick has helped some of the world's most recognized companies become and remain market leaders. For more information, visit fenwick.com.