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US ECM Activity Continues to Accelerate with 31.5% Increase in Capital Raised in H1

US ECM issuance bottomed in Q4’22 and broke a two year downtrend in Q1’23, with growth continuing into Q2’23. While H1 growth was more evenly distributed across offering types, it

US ECM issuance bottomed in Q4’22 and broke a two year downtrend in Q1’23, with growth continuing into Q2’23. While H1 growth was more evenly distributed across offering types, it was the return of larger IPOs that garnered investor attention. 11 IPOs generated proceeds of $250M or greater in the first half (vs. 4 in H1’22) with 8 of those pricing in Q2. With the recent momentum in activity, the street continues to find reason to remain optimistic that the proverbial “IPO window” will continue to wedge its way open in the second half. The largest IPO YTD was that of Kenvue Inc., a Johnson & Johnson consumer segment spin-off. Kenvue raised north of $4.3B and closed up 22.3% on the first day of trading in May. Kenvue was the largest US IPO since the 2021 Rivian IPO. 10 follow-ons raised $1B or more (vs 7 in H1’22) with the 100% secondary Marketed FO from GE HealthCare Technologies Inc. raising $2.2B and marking the largest follow-on of the first half. Q2 closed with the VIX near multi-year lows, producing yet another reason for continued optimism going into Q3.

YTD Trends and Highlights

  • Including Unregistered Block activity tracked by CMG, YTD transaction volume reached $75.5B with $30.0B raised in Q1 and $45.5B raised in Q2 for a net increase of 31.5% as compared with the first half of 2022
  • May was the busiest month of 2023 with 86 offerings raising $21.5B
  • 62 IPOs raised $10.1B YTD representing a 110% increase over the same period last year, while follow-on issuance raised $51.5B representing a 24.3% increase over the prior year via 332 offerings
  • Healthcare took the lead as the most active sector raising $20.6B (27.3% market share) followed by Consumer Defensive $10.3B (13.7% market share) and Technology $8.8B (11.7% market share)
  • On a dollar-weighted basis, 2023 IPOs returned 22.1% from offer to first day close (vs. a mean of 16.3%)
  • Mean IPO size increased from $81.1M in H1 2022 to $163.4M in H1 2023, representing an increase of 101.5%
  • On a dollar-weighted basis, registered follow-ons returned 2.5% from offer to first day close (vs. a mean of 1.6%)
  • SPAC issuance fell precipitously yet again with just 17 offerings raising $2.0B marking the slowest first half for SPAC issuance since 2016

H1 2022 vs. H1 2023 Dollar-weighted One-day Return

IPOs25.3% vs. 22.1%

Marketed FOs(0.3)% vs. 2.1%

Overnight FOs2.9% vs. 4.7%

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

Unregistered Blocks1.8% vs. 0.0%


Largest Dollar-weighted Alpha Contributors (1-Day)

Kenvue Inc.

05/03/23$4,372.2M IPO +22.3%

CAVA Group, Inc.

06/14/23$365.4M IPO +99.0%

Privia Health Group, Inc.

05/04/23$936.3M Overnight FO+24.7%


Largest Dollar-weighted Alpha Contributors (To Current)

Kenvue Inc.

05/03/23$4,372.2M IPO +20.1%

Nextracker Inc.

02/08/23$3,457.8M IPO +65.9%

Structure Therapeutics Inc.

01/02/23$185.3M IPO +177.1%


Discount Trends (Mean): Q1 and Q2

  • Marketed FOs – (12.3%), (19.7%)
  • Overnight FOs – (12.6%), (12.4%) vs. Q1 and Q2 % to VWAP of: (12.3%), (12.3%)
  • Registered Blocks – (2.5%), (4.0%) vs. Q1 and Q2 % to VWAP of: (2.5%), (5.7%)
  • Unregistered Blocks – (3.3%), (2.9%) vs. Q1 and Q2 % to VWAP of: (3.2%), (2.9%)

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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