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%))

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

25.4% vs. 170.3% (IPOs >$50M – 8.7% vs 8.2%)IPOs

0.0% vs. 0.0%SPACs

2.2% vs. 4.8%Marketed FOs

2.9% vs. 4.6%Overnight FOs

(1.0%) vs. (0.3%)Registered Blocks

(2.1%) vs. (1.1%)Unregistered Blocks

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%)

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

8.6% vs. 9.9%IPOs

91.4% vs. 90.1%FOs

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

33.2% vs. 25.0%Marketed FOs

18.5% vs. 18.2%Overnight FOs

17.1% vs. 34.5%Registered Blocks

31.3% vs. 22.3%Unregistered Blocks

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.