Axios reports that it’s shaping up to be 2018’s biggest week for US IPOs, setting June up to be the busiest IPO month in the past 3 years.
On the dockett are a dozen companies set to price this week, including The Lovesac Company (yeah, the giant beanbag makers), BJ’s Wholesale, and software dumpster fire Domo.
The 2018 IPO renaissance
According to Renaissance Capital, total IPO funds raised are up 33% from this time last year to $26.3B and filings are up 30%. For context, there have already been 114 filings since January, compared to 126 in all of 2016.
Analysts had forecast a huge IPO year for tech companies, but so far the healthcare sector is putting up the biggest numbers, with 34 IPOs raising nearly $3B this year (36% of total IPOs in 2018 thus far).
Why the bell boom?
Axios says the cause of the hot streak is a bit unclear, as there is still plenty of private capital ripe for the taking. However, their sources say strong IPO pricing and post-IPO performance for new public companies have encouraged others to enter the water.
Restrictions on Chinese investments (see above) and election uncertainty have also magnified the usual pre-August-vacation IPO bump we see every year.
Gotta lock down that extra margarita money before you go full Buffett…