Register for IPO Updates
US IPO Stats
IPO Industry Breakdown
Largest Global IPOs
Largest US IPOs
IPO News Archive
New Ways to Invest in IPOs - IPO ETFs
2013 IPO market set to kick off as calendar swells
Analyst IPO Market Commentary
After a slow holiday week started off the year, IPO activity is picking up steam. Five new deals have launched this week and are
scheduled to price the week of January 14
. The group is comprised of data center REIT CyrusOne (
), cruise operator Norwegian Cruise Line (
) and three LPs, USA Compression Partners (
), CVR Refining LP (
) and SunCoke Energy Partners LP (
). January is typically the slowest month of the year for IPO pricings,
averaging only six new deals since 2003
, with a peak of 15 new deals in 2006 and a low of zero in both 2003 and 2009.
CyrusOne, a Cincinatti Bell carve-out, operates data center REITs primarily in Texas and Ohio and will attempt to capitalize on investor interest in this sector caused by the ongoing shift to outsourced data center infrastructure. Comparable companies, such as Digital Realty Trust (NYSE:DLR) and DuPont Fabros Technology (NYSE:DFT), have vastly outperformed the broader markets since November. In addition, close comparable CoreSite Realty (NYSE:COR) is currently trading at an all time high and is up over 30% from its mid-November price.
Owned by Asian cruise and gaming company Genting HK and PE firms Apollo and TPG, Norwegian Cruise Line is the third largest cruise line operator in North America behind Carnival (NYSE:CCL) and Royal Caribbean (NYSE:RCL). The company is planning on adding three new ships to its 11-ship fleet over the next three years. It is betting on a recovery in demand after a tough macro environment coupled with the Costa Concordia disaster caused top-line growth to decelerate meaningfully in 2012.
Like CyrusOne, the LPs will also seek to take advantage of strong performance by their peers. USA Compression Partners originally filed for an IPO in June 2011 and was likely encouraged to launch its deal after the run of successful LP IPOs in late 2012. Since September, nine LPs have have gone public, of which eight have traded up and four have risen by more than 30%. The lone exception, Lehigh Gas Partners (
), is down only 0.5% since its October debut. CVR Refining LP, which is set to be the largest of the five deals at $500 million, should also be encouraged by the strong performance of refiner PBF Energy (
), which has traded up 6% since its December debut. Icahn Enterprises has indicated an interest in buying $100 million on the offering.
Following a tepid December, it is not surprising that this first wave of IPOs is driven by two sectors where there appears to be considerable investor appetite. This strong start to 2013 bodes well for the coming months. In addition to the companies that launched deals this week, there are a variety of companies that could schedule their debuts in the near future, including several confidential filers.
Deals scheduled for week of January 14
LP providing natural gas compression services in the U.S.
CVR Refining, LP
LP formed to own and operate petroleum refining and auxiliary businesses
Cincinnati Bell's data center REIT.
Norwegian Cruise Line
Third largest cruise line operator in North America
SunCoke Energy Partners
Owner and operator of cokemaking facilities and related energy assets.
*$ in millions.
Keywords / Tickers: USAC, LGP, SXCP, CVRR, CONE, NCLH,
ETF Express Award:
ETFExpress awards are based on a 'peer review system' whereby readers - including institutional and high net worth investors as well as managers and other industry professionals at fund administrators, brokers, custodians and advisers - are invited to elect a 'best in class' in a series of categories via an online survey. In each category, the firms with the most votes at the end of the voting period are subject to a final review by ETFExpress's Senior Editorial team.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
As stated in the Prospectus, the total annual operating expenses for the Fund was 3.48%. The Adviser has contractually agreed to keep net expenses from exceeding 2.50% of the Fund's average daily net assets for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual re-approval of the agreement by the Board of Trustees.
An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Definitions: Net Asset Value (NAV) of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding. Market Price is current value at which an asset or service can be bought or sold. Premium/Discount is provided to show the comparison of the daily net asset value (NAV) and the midpoint of the closing bid/ask for each of the funds.
Renaissance IPO Index® (IPOUSA)
is a stock market index based upon a portfolio of U.S.-listed newly public companies that includes securities prior to their inclusion in core U.S. equity portfolios.
Renaissance International IPO Index® (IPOXUS)
is a stock market index based upon a portfolio of newly public companies listed on non-U.S. exchanges.
The S&P 500® Index (SPX) is a stock market index which includes 500 U.S. listed companies and seeks to capture approximately 80% coverage of available U.S. market capitalization.
Risk Disclosure: Investments in the
Renaissance IPO ETF, symbol "IPO"
Renaissance International IPO ETF, symbol "IPOS"
(the "ETFs"), and the
Global IPO Fund, symbol "IPOSX"
(the "Mutual Fund") are subject to investment risk, including possible loss of the principal amounts invested. The ETFs and the Mutual Fund (the "Funds") invest in companies that have recently completed initial public offerings. These stocks are unseasoned equities lacking trading history, a track record of reporting to investors and widely available research coverage which many result in extreme price volatility. Due to a greater number of IPOs in certain segments, the Funds may also be subject to information technology and financial sector risk, small and mid-capitalization company risk, and, for the Renaissance International IPO ETF, emerging markets risk. The Funds may hold securities in the form of Depository Receipts, REITs, and Partnership Units which have greater risks than common shares. The strategies have high portfolio turnover and securities lending risks. The returns of the ETFs may not match the return of the respective indices. The ETFs are classified as non-diversified investment companies subject to concentration risk.
Prospectus: Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus and/or summary prospectus with this and other information, please visit
. Read the prospectus carefully before investing. Renaissance Capital Investments, Inc., distributor for the Mutual Fund. Foreside Fund Services, LLC, distributor for the ETFs, 1-866-486-6645.
Definitions: The Renaissance IPO Index® is a stock market index based upon a portfolio of U.S.-listed newly public companies that includes securities prior to their inclusion in core U.S. equity portfolios. The S&P 500® Index is a stock market index based on the market capitalizations of 500 large companies whose common stock is publicly traded on the NYSE or Nasdaq.
The information contained herein is proprietary and copyrighted. The media is welcome to use our information and ideas, provided that the following sourcing is included: Renaissance Capital - manager of IPO-focused ETFs.
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO), the Renaissance International IPO ETF (symbol: IPOS), or the Global IPO Fund (symbol: IPOSX), may have investments in securities of companies mentioned.
Register for Updates
Renaissance Capital LLC is an SEC-registered investment adviser.
Renaissance Capital Investments, Inc. is a
-registered broker-dealer, and member of
© 2016 Renaissance Capital LLC. All rights reserved.