Q1 2023 Global Markets Group US Equity Capital Markets Summary

US New Issuance Market Update

The US equity new issue market priced 194 deals (42 IPOs, 133 FOs, 19 CVTs) for $31.5B in aggregate proceeds in Q1 2023, up 8% from the 179 deals seen during the same period the prior year.

• Overall, volumes were driven by the 49% year-over-year uptick in follow-on offerings with 133 deals that raised $20.1B in total proceeds, led by the $1.7B offering from American Water Works Company, Inc.'s offering out of the utilities sector.
• The healthcare sector was the most active with 55 deals coming to market for $5.5B in proceeds, as Karuna Therapeutics, Inc. raised $460.0M in proceeds
• The IPO market saw volumes fall 48% from the analogous period the prior year, to 42 deals that raised a combined $3.1B in proceeds.
• A decline in SPAC issuance largely drove IPO issuance down, with just 11 deals coming to market compared to the 55 deals seen the previous year.
• The energy sector produced the biggest IPO in 2023 thus far, as Nextracker Inc. raised $734.2M in proceeds after pricing about its initial filing range at $24 per share and rose 27% in its first day on the market.
• The largest deal of the year came in the form of a convertible offering as HSBC Holdings Plc raised $2.0B in total proceeds.

US IPO Pipeline

• Currently there are 131 IPOs in the 12-month backlog, with the healthcare, SPAC, and tech sectors appearing to be the most active, having 25, 24, and 22 respective issuers in the pipeline.
• Separately, there is looming speculation that some notable companies such as Discord, Reddit, and Instacart could launch IPOs toward the second half of the year.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.