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IPOs entered April like a lion, but went out like a lamb.
After 13 companies went public in the first 18 days of April, no IPOs priced in the last two weeks. The net result is the lightest April for IPOs since 2010.
The returns were strong, however. Of the 13 companies that went public this month, two of them have declined and another is flat. The rest have risen an average of 17.5% from their IPO prices.
That’s probably why the IPO hopper is quickly filling up again. Fifteen companies are slated to go public in the coming weeks, according to Renaissance Capital. Three of them are real estate-related companies – not surprising given the improving outlook for the housing market, which in February saw its largest increase in seven years.
So while the IPO market has slowed in recent weeks, the lull won’t last much longer. With stocks establishing yet another all-time high today, more companies are likely to strike while the iron is hot.
Expect May to be a busier month for IPOs than April turned out to be.