Two major deals coming soon may help jumpstart the IPO market
Despite the S & P 500 and the Dow Jones Industrial Average posting recent record highs, the initial public offering market remains stuck in neutral. However, two large deals are likely coming to market soon. First, chip manufacturer Cerebras Systems is expected to announce its IPO imminently. The company specializes in manufacturing semiconductors that are optimized for artificial intelligence. It will likely seek to raise $750 million to $1 billion , making it one of the larger IPOs of the year. Second, aircraft maintenance services provider StandardAero upsized its IPO offering on Friday, which is expected to start trading at the New York Stock Exchange on Oct. 2. This company services all the original equipment manufacturers, including GE Aerospace, Pratt & Whitney, Rolls-Royce, Honeywell and Safran. The company is seeking to sell 60 million shares at a price range of $20 to $23 per share. StandardAero previously filed to offer 46.5 million shares at the same $20 to $23 per share range. StandardAero will be a large IPO, likely raising about $1.3 billion at the midpoint. This would make it the fourth largest IPO of the year, behind temperature-controlled warehouse real estate investment trust Lineage ( $4.4 billion ), cruise line Viking ( $1.5 billion ) and athletic company Amer Sports ( $1.37 bilion ) For reference, the majority of IPOs in the U.S. raise $100 million to $500 million. There have been more than 100 IPOs this year, and only four have raised $1 billion or more. The StandardAero deal is backed by investment firm Carlyle. Singapore’s sovereign wealth fund GIC is also a major backer and will also be selling shares. IPOs stuck in neutral IPOs in 2024 are running above last year’s figures, but they are still way below normal levels. So far this year, 104 IPOs have raised $24.7 billion. A normal year would see roughly $50 billion in IPO proceeds. The IPO raise has been sub-par for three years running. IPOs in 2024 # of IPOs: 104 Raise: $24.7 billion Typical year: $50 billion to $60 billion Source: Renaissance Capital Still, hope springs eternal. IPO watchers note childcare provider KinderCare and digital health marketplace company Solera both could raise $500 million or more. Lubricant company Moove could also be an IPO candidate. StubHub , SeatGeek , and Ingram Micro also are possibilities, along with Dunkin’ Brands-owner Inspire Brands.
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