Despite the government shutdown and uncertainty regarding the debt ceiling, the IPO market produced 22 IPOs in October—eight more than the 14 IPOs in October 2012 and the highest number for any month since the 24 IPOs in November 2007. Filing activity also appears not to have been impeded, with IPO filings in the month equal to September's total and the highest October total since 2000.

The October IPO count brings the year-to-date total to 143 IPOs, 40% higher than the 102 IPOs in full-year 2012, and a single IPO behind the January–October average of 144 IPOs recorded between 2004 and 2007—a period with an annual average of 186 IPOs.

October's gross proceeds of $5.79 billion was the highest monthly figure for 2013 and the fifth highest monthly figure since the start of 2008. Year-to-date gross proceeds of $31.62 billion now trail the $34.15 billion gross proceeds through the first ten months of 2012 by only 7%—the 2012 figure buoyed by Facebook's $16.0 billion offering.

Emerging growth companies (EGCs) continue to dominate the IPO market, accounting for 83% of all IPOs through October—slightly higher than the 76% market share claimed by EGC IPOs last year, following the enactment of the JOBS Act in April 2012.

The "moonshots" (an IPO that doubles in price on its opening day) by The Container Store, Potbelly and Voxeljet bring the 2013 count to six. The three were up 101%, 120% and 122%, respectively, on their first day—the second, third and sixth best first-day gains of the year. No other year has seen more than a pair of moonshots since the tally of 81 in 2000, and there have been a total of only ten moonshots in the intervening years. The average IPO company in the first ten months of 2013 has enjoyed a 22% first-day gain from its offering price—surpassing the 16% average first-day gain for full-year 2012. In this period, 22% of IPOs were "broken" (IPOs whose stock closes below the offering price on their opening day), compared to 20% in all of 2012, but this percentage still represents the second-lowest level of broken IPOs since 2007.

At the end of October, the average 2013 IPO company was trading 39% above its offering price and 32% of the year's IPOs were trading at least 50% above their offering price. Overall, 75% of the year's IPOs were trading above their offering price at October month-end.

The median deal size for October IPOs of $222.5 million was more than twice the year-to-date median of $105.0 million—partly explaining the high gross proceeds for the month. The year-to-date median offering size is 11% above the full-year 2012 figure of $94.3 million. The median deal size for VC-backed companies was $78.4 million—the lowest level since the $72.0 million median in 2006—while the median deal size for non-VC backed companies was $230.0 million, 58% higher than the prior ten-year average of $146.0 million.

The median annual revenue of IPO companies in 2013 remains well below the 2012 level, reflecting the higher percentage of emerging technology and life sciences companies going public. Median annual revenue decreased by a third, from $133.6 million in 2012 to $89.1 million in the first ten months of 2013—the lowest level since the $74.5 million median in 2007. Life sciences IPO companies in the first ten months of the year had median annual revenue of just $11.6 million. EGCs completing IPOs had median annual revenue of $63.6 million, compared to $2.48 billion for other companies.

The percentage of profitable companies going public declined from 55% in 2012 to 43% in the first ten months of 2013—the lowest level since the 26% in both 1999 and 2000.

October IPO activity consisted of offerings by the following companies listed in the order they came to market:

  • Burlington Stores, a national off-price retailer of high quality branded apparel, priced above the range and ended its first day with a 47% gain.
  • RE/MAX Holdings, one of the world's leading franchisors of real estate brokerage services, priced above the range and saw a first-day gain of 23%.
  • Potbelly, a fast-growing neighborhood sandwich concept offering toasty warm sandwiches, signature salads and other fresh menu items, priced above the range and soared 120% on its first day.
  • LDR Holding, a global medical device company focused on designing and commercializing novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders, priced within the range and gained 29% on its first day.
  • SFX Entertainment, a producer of live events and entertainment content focused exclusively on the electronic music culture, priced an IPO upsized by 20% at the top end of the range and saw a first-day loss of 9%.
  • Antero Resources, an independent oil and natural gas company, priced an IPO upsized by 19% above the range and ended its first day with a gain of 18%.
  • MacroGenics, a biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases, priced an IPO upsized by 25% at the top of the range and gained 56% in first-day trading.
  • Stonegate Mortgage, a non-bank, integrated mortgage company, pricing a downsized IPO below the range and saw a first-day gain of 14%.
  • Consumer finance company Springleaf Financial priced an upsized IPO at the high end of the range and gained 13% on its first day.
  • Veeva Systems, a provider of industry-specific, cloud-based software solutions for the life sciences industry, priced above an upwardly revised range and ended its first day up 86%.
  • Germany-based Voxeljet, a provider of high-speed, large-format 3D printers and on demand parts services, priced at the low end of the range and jumped 122% on its first day—the first company since 1999 to double on its first day after pricing at the low end of its range.
  • Aerie Pharmaceuticals, a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with glaucoma and other diseases of the eye, priced an IPO upsized by 28% below the range and saw a first-day gain of 6%.
  • CommScope Holding, a global provider of connectivity and essential infrastructure solutions for wireless, business enterprise and residential broadband networks, priced below the range and ended its first day one cent shy of its offering price.
  • Endurance International Group, a provider of cloud-based solutions designed to help small- and medium-sized businesses, establish, manage and grow their businesses, priced below the range and declined 6% on its first day.
  • Paris-based Criteo, an ad tech company that enables e-commerce companies to leverage large volumes of granular data to efficiently and effectively engage and convert their customers, priced an IPO upsized by 12% above an upwardly revised price range and saw a first-day gain of 14%.
  • Surgical Care Affiliates, an operator of one of the largest networks of outpatient surgery facilities in the United States, priced at the top of the range and ended its first day up 13% from its offering price.
  • Veracyte, a diagnostics company pioneering the field of molecular cytology to improve patient outcomes and lower healthcare costs, priced an IPO upsized by 6% at the low end of the range and saw a first-day gain of 2%.
  • 58.com, an online marketplace serving local merchants and consumers in China, priced above an upwardly revised price range and ended its first day up 42%.
  • Essent Group, a private mortgage insurance company, priced above the range and saw a first-day gain of 26%.
  • Marcus & Millichap, a national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services, priced below the range and ended its first day with a 12% gain.
  • Qunar, the leading search-based commerce platform for the travel industry in China, priced above the range and saw a first-day gain of 89%.
  • The Container Store Group, the leading specialty retailer of storage and organization products in the United States, priced at the top end of an upwardly revised range and ended its first day up 101%.

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