US ECM activity increased 15.7% over the prior quarter led primarily by an increase in follow-on issuance.
- Including SPACs, 199 offerings raised $59.1B
- September marked the the most active month of issuance in the third quarter with 99 offerings completed for $27.1B in proceeds
- The average weekly activity increased from 15 offerings in 2023 to 17 YTD
- Lineage, Inc. 07/24/24 IPO successfully raised $5,102.3M, the largest US offering YTD, accounting for 8.6% of all proceeds raised in the quarter
- YTD Convertible Issuance has now surpassed all of 2023 raising $58.2B vs. $52.5B
Q3 Trends
- Including Unregistered Block activity tracked by CMG, Q3 transaction volume increased to $55.7B, a 41.6% increase year over year and a 13.0% increase from the prior quarter (excluding SPACs)
- IPOs raised $8.9B, representing a 6.3% increase over the same period last year via 42 offerings, while follow-on issuance raised $47.1B representing a 52.3% increase over the prior year via 140 offerings
- Healthcare was the most active sector raising $11.8B (21.0% market share) followed by Energy $8.5B (15.1% market share) and Consumer Cyclical $8.2B (14.6% market share)
- On a dollar-weighted basis, IPOs returned 7.3% from offer to first day close (vs. a mean of (0.9%))
- On a dollar-weighted basis, registered follow-ons returned 3.2% from offer to first day close (vs. a mean of 3.0%)
H1 2024 vs. Q3 2024 Dollar-Weighted One-Day Returns
IPOs
16.2% vs. 7.3%
SPACs
0.6% vs. (0.2%)
Marketed FOs
3.9% vs. 4.3%
Overnight FOs
5.1% vs. 4.2%
Registered Blocks
0.9% vs. 1.5%
Unregistered Blocks
(0.7)% vs. 2.7%
Largest Q3 Dollar-Weighted Alpha Contributors (1-Day)
JD.com INC
08/20/24
$3,605.9M Unregistered Block +8.3%
OneStream, Inc.
07/23/24
$563.5M IPO +34.3%
Lineage, Inc.
07/24/24
$5,102.3M IPO +3.6%
Largest Q3 Dollar-weighted Alpha Contributors (To Current)
JD.com, Inc.
08/20/24
$3,605.9M IPO +60.3%
OneStream, Inc.
07/23/24
$563.5M IPO +69.5%
Aurora Innovation, Inc.
07/31/24
$483.0M Overnight IPO +64.4%
IPO Vs. Follow-On Composition as a % of Proceeds Raised: H1 2024 Vs. Q3 2024
IPOs
16.5% vs. 16.1%
FOs
83.5% vs. 83.9%
Follow-On Composition as a % of Proceeds Raised: H1 2024 Vs. Q3 2024
Marketed FOs
23.3% vs. 18.2%
Overnight FOs
27.4% vs. 24.3%
Registered Blocks
26.8% vs. 26.6%
Unregistered Blocks
22.5% vs. 30.9%
Pricing and Discount Trends: H1 2024 Vs. Q3 2024 (IPOs – Price vs. Initial Range)
Above Range
11.0%, 5.1%
Within Range
76.8%, 74.4%
Below Range
12.2%, 20.5%
Pricing and Discount Trends: H1 2024 Vs. Q3 2024 (Follow-ons – (Median) File to Offer Discount %)
Marketed FOs
(11.4%), (15.8%)
Overnight FOs
(8.9%), (10.0%) vs. H1 ’24 & Q3 ’24 % to VWAP of: (9.4%), (10.5%)
Registered Blocks
(3.3%), (2.5%) vs. H1 ’24 & Q3 ’24 to VWAP of: (3.5%), (2.3%)
Unregistered Blocks
(2.1%), (2.4%) vs. H1 ’24 & Q3 ’24 % to VWAP of: (2.0%), (2.2%)
Pricing and Discount Trends: H1 2024 Vs. Q3 2024 (Converts)
Average Coupon
3.1%, 2.8%
Average Premium
29.9%, 32.0%
Offerings including Capped Call
53.2%, 35.0%
Average Effective Conversion Premium
85.0%, 96.4%
This information provided is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice. You should not act or refrain from acting on the basis of any of this information. Past performance is no guarantee of future results. CMG shall have no liability whatsoever for your use of this information.
