U.S. ECM Recap

First Quarterly Increase in US ECM Activity in Two Years

US ECM activity in Q1’23 broke a two-year downtrend, increasing modestly from Q4’22 for the first quarterly increase in capital raised since record issuance in Q1’21.

  • Including SPACs, 192 offerings raised $30.2B

  • Average weekly activity in Q1 increased to 14 offerings vs. 12 in FY’22

  • Average Q1’23 IPO size fell 11.1% from $87.2M in FY’22 to $77.5M (vs. median deal size of $13.6M)

  • Average Q1’23 registered follow-on size fell 11.2% from $196.3M to $174.4M YTD (vs. median deal size of $108.0M)

  • Excluding SPACs, 33.7% of all offerings priced were $25M or less and 43.6% were $50M or less

  • Excluding SPACs, 66.7% of all IPOs priced were $25M or less and 75.8% were $50M or less

  • American Water Works Co Inc successfully raised $1,714.1M, the largest US offering YTD, accounting for 5.7% of all proceeds raised in Q1

Q1 Trends

  • Including Unregistered Block activity tracked by CMG, Q1 transaction volume fell to $29.3B, a 3.6% decrease year over year and a 16.1% increase from the prior quarter (excluding SPACs)

  • IPOs raised $2.6B, representing a 3.5% increase over the same period last year via 33 offerings, while follow-on issuance raised $26.7B representing a 4.2% decrease over the prior year via 148 offerings

  • Healthcare took over as the most active sector raising $6.7B (23.2% market share) followed by Technology $4.9B (16.7% market share) and Utilities $3.7B (12.6% market share)

  • On a dollar-weighted basis, IPOs returned 15.8% from offer to first day close (vs. a mean of (1.6%)) and returned 20.4% from offer to current (vs. a mean of (2.8%))

  • On a dollar-weighted basis, registered follow-ons returned 2.0% from offer to first day close (vs. a mean of 1.5%) and returned (1.7%) from offer to current (vs. a mean of (5.4%))


FY 2022 vs. Q1 2023 Dollar-weighted One-day Returns

IPOs66.9% vs. 15.9% (IPOs >$100M 12.5% vs. 18.9%)

SPACs0.1% vs. 1.5%

Marketed FOs2.6% vs. 2.6%

Overnight FOs3.4% vs. 2.7%

Registered Blocks0.1% vs. 0.0%

Unregistered Blocks(0.8%) vs. (0.2)%


Largest Q1 Dollar-weighted Alpha Contributors with Mean Deal Size >$100M (1-Day)

Nextracker Inc.

02/08/23$734.2M IPO +26.9%

Structure Therapeutics Inc.

02/02/23$185.3M IPO +73.3%

Revolution Medicines, Inc.

03/02/23$345.0M Marketed FO +15.7%


Largest Q1 Dollar-weighted Alpha Contributors with Mean Deal Size >$100M (To Current)

Nextracker Inc.

02/08/23$734.2M IPO +51.1%

American Water Works Co Inc

02/28/23$1,714.1M Overnight FO +8.1%

iQIYI, Inc.

01/17/23$510.2M Overnight FO +23.4%


Discount Trends (Median File to Offer): FY 2022 & Q1 2023


IPO Vs. Follow-On Composition as a % of Proceeds Raised: FY 2022 Vs. Q1 2023

IPOs8.1% vs. 8.7%

FOs91.9% vs. 91.3%


Follow-On Composition as a % of Proceeds Raised: FY 2022 Vs. Q1 2023


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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