Block activity gains momentum during August slowdown
Global ECM activity in August raised $17.6Bn via 126 transactions tracked by CMG, a 42% decrease from the $30.3Bn raised via 171 transactions in August of last year (ex. rights offerings). IPOs had a slow month making up 2.5% of >$500M offering volume while registered blocks comprised just over half at 51.1% of volume. The majority of the block activity came from the Industrials sector, as it comprised nearly half the volume with 48%.
In the U.S., registered blocks for Cencora, Aramark, and Vertiv Holdings Co., led the way with $1.4Bn, $845.2M, and $702M in gross proceeds, respectively. Healthcare company, Cencora Inc., also represented the largest offering globally in the month of August.
The best performing follow-on in the U.S. was Mirati Therapeutics Inc’s $345M overnight follow-on, posting an offer-to-open return of 24.5%. Meanwhile, the median offer-to-open for the same cohort was 0.8% (market cap of >$500M).
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