After two quiet years on the initial public offering front in the US, Proskauer is predicting a pickup for 2017.
In its fourth annual IPO study released on Wednesday, Proskauer noted that “2017 is shaping up to be a much better year than 2016, with 20 IPOs priced through the first quarter of 2017 compared to only six for the same period in 2016”.
In 2016, a total of 79 IPOs priced for the whole year, due to market slowness and volatility, which the firm attributed to several factors including Brexit and the US presidential election.
Nevertheless, 2017 has gotten off to a slower than recent years, with fewer IPOs in the first quarter than in any year from 2010 to 2015.
“We have seen relatively fewer healthcare IPOs than in previous years,” said Proskauer. “Energy and power and technology, media and telecommunications were the sectors in the first quarter with the most IPOs.”
The big IPO of the year was that of Snap Incorporated, which had a base deal value of $3.4 billion, making it the largest IPO since Alibaba in 2013.
Venture capital backers of Snap included Lightspeed Venture Partners, Benchmark Capital Partners, General Catalyst, Kleiner Perkins Caufield & Byers, Sequoia Capital and Institutional Venture Partners
“In addition, there have been indications that the SEC may take steps to make the regulatory environment more attractive for IPOs in 2017 and the near future,” Proskauer added.