During the second quarter 2016, the IPO market improved with 34 IPOs raising approximately $5.5 billion, according to Renaissance Capital. While activity in the quarter was significantly higher than the first quarter (there were only eight IPOs in Q1), overall IPO levels are down. Healthcare continues to represent the most significant sector, accounting for 15 of the 34 IPOs during the quarter. There were a few tech company IPOs, as well as two REITs, a untility, and four consumer IPOs. Many of the quarter's IPO issuers are venture-backed companies. Private equity backed IPOs have not returned to typical levels. The depressed levels are attributable to uncertainty regarding interest rates, disparities in valuations between the private and public markets, and Brexit concerns.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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