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US IPO Weekly Recap: Final week of the 1Q16 ends with no IPOs

April 1, 2016
Weekly Recap

No companies went public during the final week of March, ending the IPO market's slowest quarter since 2009.

Micro-cap systems maker Sensus Healthcare (SRTSU) postponed a $20 million IPO at a proposed $97 million market cap. However, some billion-dollar IPO news hit this week with the initial filing of AIG spinoff United Guaranty (UGCO.RC), while large LBOs US Foods (USFD; est. $1 billion deal size) and McGraw-Hill Education (MHED; est. $500 million) both updated financials.

IPO conditions improved further, as the Renaissance IPO Index traded up again this week (+3.4% vs. S&P's 1.8%). The Index is now up 22% from its February low, compared to +13% for the S&P. Additionally, the VIX Volatility Index reached a new low for the year, ending the week near 13. We now await the IPO Icebreakers; news recently broke that both Bats Global Markets (BATS) and SecureWorks (BATS) are targeting April offerings.

Read our 1Q16 US IPO Review: Find out what forces shaped the IPO market and what to expect in Q2.

Aside from the large filers we noted above, Global Medical REIT (GMR), a health care REIT with $7 million in sales, filed for a $100 million IPO. Early-stage biotech Aeglea BioTherapeutics (AGLE) set terms for a $60 million IPO in the week ahead. Payment processor TransFirst, which was acquired in January for $2.35 billion, withdrew its filing.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 7% year-to-date, compared to +1% for the S&P 500. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Synchrony Financial (SYF), Alibaba (BABA) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 4% year-to-date, compared to -1% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include NN Group and Recruit Holdings. Read our IPO investing page to find out if this is the best ETF for you.