US sees IPO surge in Q3
16 October 2018 New York
Image: Shutterstock
Initial public offering (IPO) launch activity in the US surged year-on-year in Q3, according to Argus Custom Research in its Q3 syndicate summary and outlook prepared for Triad Securities Corp.
Volatility in the US equity markets in Q3 was stable compared to the same period a year ago.
Although investors were concerned about the US Federal Reserve, interest rates, the political trends and tariffs, payroll numbers were strong, suggesting solid economic growth, said Argus. Corporate earnings advanced more than 20 percent.
The S&P 500 set an all-time high of 2940 during the quarter, and it ended the period within approximately 1 percent of the record high level.
The bullish economic and stock-market conditions lifted prices in the quarter.
Argus said it estimates that the ratio of non-blank-check-company IPOs that opened at prices above the issue price compared to IPOs that opened at or below the issue price was approximately 2.4:1, up from an average ratio of 1.5:1 in Q1 and in line with the ratio in Q2.
From an industry perspective, IPO activity stayed consistent quarter over quarter.
Volatility in the US equity markets in Q3 was stable compared to the same period a year ago.
Although investors were concerned about the US Federal Reserve, interest rates, the political trends and tariffs, payroll numbers were strong, suggesting solid economic growth, said Argus. Corporate earnings advanced more than 20 percent.
The S&P 500 set an all-time high of 2940 during the quarter, and it ended the period within approximately 1 percent of the record high level.
The bullish economic and stock-market conditions lifted prices in the quarter.
Argus said it estimates that the ratio of non-blank-check-company IPOs that opened at prices above the issue price compared to IPOs that opened at or below the issue price was approximately 2.4:1, up from an average ratio of 1.5:1 in Q1 and in line with the ratio in Q2.
From an industry perspective, IPO activity stayed consistent quarter over quarter.
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