U.S. ECM Recap

October 4, 2022

Q3 ECM Issuance Remains Muted Despite Strong August

US ECM activity in Q3’22 declined for the 6th consecutive quarter following record issuance in Q1’21.

• Including SPACs, 191 offerings raised $26.1B

• The seasonally slow month of August was the most active month of issuance year to date, with 89 offerings completed

• The average weekly activity in 2021 was 29 offerings vs. 12 YTD

• Excluding SPACs, 37.7% of all offerings priced raised $25M or less and 47.5% raised $50M or less

• Excluding SPACs, 82.4% of IPOs raised $25M or less and just 3 IPOS raised more than $50M

• Q3’22 marked the third consecutive quarterly decline in the average IPO proceeds

• Average Q3’22 IPO proceeds fell 17.1% from $89.6M in H1’22 to $74.3M (vs. median deal size of just $14.4M)

• Average Q3’22 registered follow-on proceeds fell 28.5% from $222.7M in H1’22 to $159.3M (vs. median deal size of $92.0M)

• Corebridge Financial, Inc successfully raised $1,680.0M, accounting for 66.5% of total Q3’22 IPO proceeds

• Q3’22 marked the third consecutive quarterly decline in SPAC issuance (the slowest pace since Q1’17) with just 8 offering raising $648.0M

Q3 Trends

• Including Unregistered Block activity tracked by CMG, Q3 transaction volume dropped to $25.5B, a 75.3% decrease year over year and a 2.3% decrease from the prior quarter (excluding SPACs)

• IPOs raised $2.5B, representing a 92.0% decrease over the same period last year via 34 offerings, while follow-on issuance raised $23.0B representing a 67.8% decrease over the prior year via 149 offerings

• Healthcare was the most active sector raising $9.1B (35.7% market share) followed by Financial Services $4.2B (16.5% market share) and Real Estate $2.5B (9.8% market share)

• On a dollar-weighted basis, IPOs returned 170.3% from offer to first day close (vs. a mean of 531.2%) and returned 16.1% from offer to current (vs. a mean of (31.4%))  *Returns skewed by several IPOs <$50M gaining 100%+.

• On a dollar-weighted basis, registered follow-ons returned 2.7% from offer to first day close (vs. a mean of (2.0%)) and returned (9.2%) from offer to current (vs. a mean of (14.4%))

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H1 2022 vs. Q3 2022 Dollar-weighted One-day Returns

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Discount Trends (Mean File to Offer): H1 2022 Vs. Q3 2022

• Marketed FOs – (25.0%), (24.1%)
• Overnight FOs – (14.2%), (14.7%) vs. FY21 & Q1 2022 % to VWAP of: (14.9%), (15.2%)
• Registered Blocks – (6.6%), (5.9%) vs. FY20 & Q1 2021 % to VWAP of: (6.3%), (5.9%)
• Unregistered Blocks – (4.3%), (5.4%) vs. FY20 & Q1 2021 % to VWAP of: (4.3%), (5.4%)

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IPO Vs. Follow-On Composition as a % of Proceeds Raised: H1 2022 Vs. Q3 2022

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Follow-On Composition as a % of Proceeds Raised: H1 2022 Vs. Q3 2022

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