U.S. ECM Recap

ECM Activity Tapers Amidst Choppy Market Conditions

US ECM activity in Q1’22 declined for the 4th consecutive quarter following record issuance in Q1’21.

  • Including SPACs, 217 offerings raised $40.2B
  • Q1’22 marked the first quarter over quarter reduction in proceeds raised of more than 50% since Q3 of 2015
  • For comparison, the average weekly activity in 2021 was 29 offerings vs. 12 YTD
  • Excluding SPACs, 38.9% of offerings priced were $25M or less and 46.9% were $50M or less
  • Average Q1’22 IPO size fell 75% from $363.5M in FY’21 to $90.8M YTD (vs. median deal size of $16.0M)
  • Average Q1’22 registered follow-on size fell 27.9% from $274.2M to $197.8M YTD (vs. median deal size of $69.0M)
  • TPG Inc. successfully raised $1,100.1M, accounting for 44.0% of total Q1 22 IPO proceeds
  • SPAC issuance accounted for more than 4x the proceeds raised by traditional IPOs

Q1 Trends

  • Including Unregistered Block activity tracked by CMG, Q1 transaction volume dropped to $30.2B, a 79.5% decrease year over year and a 66.4% decrease from the prior quarter (excluding SPACs)
  • IPOs raised $2.5B, representing a 94.4% decrease over the same period last year via 27 offerings, while follow-on issuance raised $27.7B representing a 73.4% decrease over the prior year via 135 offerings
  • Financial Services took over as the most active sector raising $6.4B (21.3% market share) followed by Healthcare $4.3B (14.4% market share) and Real Estate $4.3B (14.2% market share)
  • On a dollar-weighted basis, IPOs returned 19.7% from offer to first day close (vs. a mean of 51.9%) and returned 4.7% from offer to current (vs. a mean of 4.0%)
  • On a dollar-weighted basis, registered follow-ons returned 1.3% from offer to first day close (vs. a mean of (4.4%)) and returned (2.5%) from offer to current (vs. a mean of (2.2%))

FY 2021 vs. Q1 2022 Dollar-weighted One-day Returns

24.2% vs. 19.7%IPOs

2.6% vs. 0.1%SPACs

2.9% vs. 1.9%Marketed FOs

5.1% vs. 2.0%Overnight FOs

0.6% vs. (0.2)%Registered Blocks

0.5% vs. (2.9)%Unregistered Blocks

Largest Q1 Dollar-weighted Alpha Contributors: 1-Day

Yoshitsu Co., Ltd

1/7/22$25.0M IPO +700.0%

TPG Inc.

1/12/22$1,100.1M IPO +15.3%

Blue Water Vaccines Inc.

2/11/22$20.0M IPO +537.8%

Largest Q1 Dollar-weighted Alpha Contributors: To Current

Intra-Cellular Therapies Inc

1/4/22$460.0M Marketed FO +49.2%

Blue Water Vaccines Inc

2/11/22$20.0M IPO +588.0%

Credo Technology Group Holding Ltd

1/26/22$230.0M IPO +44.2%

SPAC Issuance

IPO Vs. Follow-On Composition as a % of Proceeds Raised: FY 2021 Vs. Q1 2022

35.0% vs. 8.1%IPOs

65.0% vs. 91.9%FOs

Follow-On Composition as a % of Proceeds Raised: FY 2021 Vs. Q1 2022

Discount Trends (Mean File to Offer): FY 2021 & Q1 2022

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.


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