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
One IPO prices this week amid broader market meltdown; 12 IPOs scheduled for next week ahead of summer hiatus
Analyst IPO Market Commentary
Shaken by the US debt crisis, investors fled the markets this week, culminating in a broad sell-off on Thursday. The S&P 500 shed 4%, while the Nasdaq lost 5% for the day. The IPO market suffered casualties as well -- of the three IPOs scheduled for this week, only one managed to price. Reflecting investor sentiment, American Capital Mortgage (
) limped to market on Thursday, selling 8 million shares (less than half of the originally planned 17.5 million shares) and closing down 8% from its IPO price of $20.
Another victim of the weak capital markets, employee-benefit software provider WageWorks (
), slashed its proposed price range by 35% Thursday morning. Originally scheduled to price after the close Thursday, WageWorks pushed back its offering to early next week. Its reliance on acquisitions for growth and the intensely competitive landscape likely contributed to pricing pressure. WhiteGlove Health (
), a Texas-based healthcare company, also delayed its IPO to early next week. It was initially scheduled to price the week of July 25.
The markets showed signs of a recovery Friday afternoon, boding well for the swelling US
. Twelve deals are scheduled for next week as companies rush to market ahead of the traditional summer hiatus. Joining WageWorks and WhiteGlove on the calendar are a number of companies in the tech space. Online backup solutions provider Carbonite (
) and motion sensor manufacturer InvenSense (
) plan to come to market early next week, while on-demand security software provider Trustwave Holdings (
) is scheduled for later in the week.
Technology has been the most popular sector for the US IPO market
and has accounted for 30% of deals priced over the last 12 months. These 52 deals raised $10 billion in proceeds and are trading 3% on average above their listing prices.
Three foreign companies are also looking to tap the US markets: Chinese biofuel producer Cathay Industrial Biotech (
), Hong Kong-based mobile marketer Loyalty Alliance (
), which serves the Greater China market, and Portuguese mobile marketer TIM w.e. (
), which focuses on Latin America and other emerging markets. Also pricing next week are energy trusts Enduro Royalty Trust (
) and SandRidge Permian Trust (
) and regional banks Midland States Bancorp (
) and HomeStreet (
Twelve IPOs were scheduled for the week of July 25, but only eight ultimately priced. If all twelve deals are successfully completed next week, it will be the busiest week for US IPOs since November 2007.
Keywords / Tickers: MTGE, WAGE, WGH, CARB, INVN, TWAV, CBIO, LAEC, TMWE, NDRO, PER,
Recently Priced IPOs
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. The
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. The 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.
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.