U.S. IPO market's $23.2 billion in year-to-date proceeds exceeds the $19.4 billion raised for all of 2023

By Ciara Linnane

Only one deal is expected this week

The U.S. initial public offering market has raised $23.2 billion in proceeds in the year to date, surpassing the $19.4 billion raised for all of 2023 - with five months still to go.

That's according to Renaissance Capital, a provider of IPO exchange-traded funds and institutional research, which has counted 82 IPOs in 2024, up about 37% from the same period a year ago.

The data comes after the biggest deal of the year was a success last week, in a positive signal for fall offerings.

Michigan-based Lineage Inc. (LINE), a cold-storage warehouse real-estate investment trust, or REIT, raised $4.4 billion in a deal that priced near the high end of its proposed range after being upsized. The stock gained 6.3% in its debut, which came at a valuation of $19.2 billion.

"Not much of a pop, but we weren't expecting one for a large-cap REIT valued in line with a very close peer," Bill Smith, co-founder and chief executive of Renaissance, said in commentary.

That peer is Americold Realty Trust (COLD), the second-biggest owner and operator of temperature-controlled warehouses - which are mostly used by food companies, along with pharmaceutical companies that require cold storage for medicines such as vaccines.

Lineage was the first REIT to go public since American Healthcare REIT (AHR) hit the market in February. That was the only REIT to go public since the IPO drought started in 2022.

The IPO calendar is thin this week, although Bill Ackman's closed-end fund Pershing Square USA (PSUS) is expected to raise up to $4 billion and list on the New York Stock Exchange, according to Renaissance. (That deal will not be included in Renaissance's statistics.)

"The company plans to invest in 12 to 15 large-cap, investment grade, free-cash-flow-generative, North American, durable growth companies," Smith said.

Actuate Therapeutics (ACTU), which is developing cancer drugs, is tentatively scheduled to raise $27 million at an $182 million valuation.

August is expected to be a quiet month for deals as the market heads into the Labor Day holiday weekend.

The Renaissance IPO ETF IPO has gained 7% in the year to date, while the S&P 500 SPX has gained 15%.

-Ciara Linnane

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07-30-24 0849ET

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