Resurgent IPOs

September is shaping up to be the busiest month in more than a year for companies going public.

At least 18 companies are expected to sell their stock in initial public offerings this month, according to Renaissance Capital, a manager of IPO-focused exchangetraded funds. Ten of those companies, including motor oil seller Valvoline, began trading this week alone.

Fewer companies were eager to go public earlier this year, spooked by turbulent financial markets. During January, when the Standard & Poor’s 500 index slumped to its second sharp drop of at least 10 percent in five months, no companies went public.

As the market recovered, companies felt more confident to make the leap. Along the way, they benefited from the market’s steady rise back to record levels, inspiring others waiting to go public to follow suit, said Kathleen Smith, a principal at Renaissance Capital. The average return for companies that had their IPO this year stood at 35.7 percent as of Wednesday, she said.

“The performance of recent IPOs is the fuel that drives the IPO issuance engine,” Smith said. “And the engine is running now.”

This month’s pickup, though, looks to be just a blip in an otherwise down year. Smith expects IPOs will slow again next month ahead of the presidential election. That, plus their slow start, means it’s unlikely that IPOs will surpass 2015’s pace.

“It’s going to be a subpar year,” she said.

*estimated Source: Renaissance Capital Alex Veiga; J. Paschke • AP