Late summer tailspin pushes 2015 IPOs to 6-year low

The market for initial public offerings went into a tailspin last summer, sending 2015 IPOs to a 6-year low, Renaissance Capital reported.

There were 170 deals worth a collective $30 billion this year, when the market seemed on track for more than 200 1st-time flotations, until a stall in August and September that “wiped out positive performance, drove abnormally high IPO discounts and brought issuance to a near halt by year-end,” the investment firm reported.

Healthcare was the only sector to hold up, logging a record 46% of all 2015 IPOs, according to the report.

But 58% of all IPOs traded below issue and the average IPO down -4% at year’s end. And although the pipeline is full for 2016, a host of factors will influence the decisions of both investors and issuers.

All eyes are on the Federal Reserve, which buoyed Wall Street last week when it raised rates. Monetary policies in the European Union are also being watched closely, as is the situation in China, where the economy is faltering. This year’s poor IPO performance, energy’s slide and the increase in mergers & acquisitions will also play a role, according to Renaissance.

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