Four IPOs are slated for the last week of July, following a week where four deals averaged a 21% return. Two health care companies and an insurer join Talend. Major indices have been climbing to record highs, and a well-stocked pipeline leads us to believe that the will see no shortage of IPO activity going forward.
| Renaissance Capital's IPO Calendar - Week of 7/25/2016 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Lead Manager(s) |
| Bioventus Durham, NC |
BIOV Nasdaq |
$150 | $16 - $18 8,823,529 |
J.P. Morgan Piper Jaffray |
| Offers non-invasive and surgical products for musculoskeletal conditions. | ||||
| Kadmon Holdings New York, NY |
KDMN NYSE |
$100 | $16 - $20 5,555,556 |
Citi Jefferies |
| Developing kinase inhibitors for autoimmune disease, fibrosis and solid tumors. | ||||
| Kinsale Insurance Richmond, VA |
KNSL Nasdaq |
$90 | $14 - $16 6,000,000 |
J.P. Morgan William Blair RBC Capital Markets |
| Multi-line insurer providing excess and surplus insurance. | ||||
| Talend Redwood City, CA |
TLND Nasdaq |
$84 | $15 - $17 5,250,000 |
Goldman Sachs J.P. Morgan Barclays |
| Provides an open source data integration platform to enterprise customers. | ||||
Talend (TLND), which provides a cloud-based data integration platform, plans to raise $84 million with a market cap of $476 million. Though currently unprofitable, the company addresses a $16 billion market and has managed to secure big-name customers such as General Electric, Allianz and Citi. The company may continue the trend of top-performing tech IPO’s this year.
Bioventus (BIOV) plans to raise $150 million next week with a market cap of $575 million. Carved out of Smith & Nephew (NYSE: SNN), the company specializes in orthobiologic products and has successfully supplemented its mature bone repair device and hyaluronic acid injection business (83% of 1Q16 sales) with an acquired portfolio of higher-growth surgical products.
Kadmon (KDMN), a biotech focused on developing kinase inhibitors for autoimmune and other diseases, is set to raise $100 million to fund further clinical trials of its Phase 2 lead candidate. Kadmon was founded by former ImClone CEO Sam Waksal after his prison term for insider trading relating to the Marth Stewart scandal; the biotech is now led by brother Harlan Waksal and had an accumulated deficit of $677 million as of the MRQ.
Kinsale (KNSL), which is led by former executives from James River (JRVR; 12/14 IPO; +63%), is set to be the only public pure-play insurer in the excess and surplus segment of the P&C industry. Expected to raise $90 million, the company has maintained an industry-leading combined ratio, though its average premiums declined in the same period.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 3% year-to-date, while the S&P 500 up 6%. 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 7% year-to-date (as of Thursday's close), compared to ACWX, which is up 1% (also as of Thursday). Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Recruit Holdings, NN Group and Aena S.A.
