Q3 2023 Global Markets Group US Equity Capital Markets Summary

US New Issuance Market Update

• The U.S. Equity New Issuance Market priced 166 deals (41 IPOs, 110 FOs, 15 CVTs) for $40.7B in aggregate proceeds, just below the 167 deals seen the prior year.
• Despite the similar deal count during the same time period last year, the amount of proceeds raised rose 59% year-over-year from $25.6B to $40.7B, largely due to seven issuers raising more than $1.0B in proceeds.
• Overall, 41 IPOs hit the market for $9.1B in combined proceeds, up marginally from the 37 IPOs that raised $3.1B in proceeds the analogous quarter the prior year.
• Continuing the trend seen Q1 and Q2, volumes were driven by Follow-On offerings as 110 deals priced, down 5% from the 116 deals seen in Q2 2022
• The largest deal of the quarter came from Arm Holdings Limited as the tech company raised $5.2B from its IPO offering in September. The issue priced at $51 per share, which was the high end of its initial filing range and saw a 25% uptick in its first day of trading. It was the largest tech IPO since Uber Technologies, Inc. raised $8.1B in May 2019.
• The second largest deal of the quarter came in the form of a follow-on, with AerCap Holdings N.V. raised $2.4B in proceeds out of the financials sector.
• The healthcare sector remained the most active with 50 deals coming to market for $8.9B in proceeds, highlighted by AmerisourceBergen Corp.'s $2.0B Follow-On offering in August

US IPO Pipeline

• Currently there are 62 IPOs in the six-month backlog, with the healthcare and industrials sectors appearing to be the most active with 12 issuers each in the pipeline.
• The largest expected deal is Lexeo Therapeutics, hailing out of the healthcare sector, seeking to raise $126.0M in total proceeds.
• Despite the lack of IPO activity, several unicorn IPOs such as Stripe, Databricks, and Chime remain hopeful to hit the market in 2024.

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