Just one week old, the 2Q has already seen one pricing, three launches, three initial filings and significant filings updates. This represents the most IPO-related activity since early in the 1Q.
A familiar move from the biotech playbook
Aeglea BioTherapeutics (AGLE), which is developing enzymes for rare genetic metabolic diseases and tumors, raised $50 million by offering 5.0 million shares at $10, significantly below the $16 to $18 range. Keeping with this year’s trend in biotech IPOs, 64% of the deal was taken down by insiders.
| One biotech IPO during the week of April 4, 2016 | |||||
| Company (Ticker) | Business | Deal size ($mm) | IPO price vs. midpoint | 1st-day pop | Return at 4/8 |
| Aeglea BioTherapeutics (AGLE) |
Enzymes for rare genetic diseases and tumors | $50 | -41.2% | -2.3% | 19.9% |
Breaking a two month drought for operating company launches, the week saw three profitable companies with established operating histories set terms for their IPOs: Bats Global Markets (BATS), an operator of securities exchanges in the US and Europe, set terms to raise $202 million, MGM Growth Properties (MGP), the MGM Resorts-backed REIT, set terms to raise $975 million, and American Renal Associates Holdings (ARA), an operator of 192 kidney dialysis clinics, set terms to raise $161 million. If all three price successfully, the aggregate $1.3 billion in proceeds would represent nearly double this year’s total.
IPO pipeline expands
Global CRO inVentiv Group Holdings (VTIV.RC) filed to raise an estimated $500 million, China-based online metals brokerage Yintech Investment Holdings (YIN) filed to raise $80 million, Novartis-backed biotech Viamet Pharmaceuticals (VMET) refiled to raise $100 million and soft drink producer Long Island Iced Tea Corp. (LTEA) filed to raise $11.5 million. High-growth software-defined storage provider Nutanix (NTNX), building materials distributor GMS (GMS), Novartis-backed biotech Merus (MRUS) and health care REIT MedEquities Realty Trust (MRT) all updated financials.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 8% year-to-date, while the S&P 500 is flat. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 4% year-to-date, compared to -2% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include NN Group and Aena S.A.To find out if this is the best ETF for you, visit our IPO Investing page.
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