Our Passion for IPOs
News & Views
Largest Global IPOs
Largest US IPOs
Largest US IPOs YTD
Largest US Internet IPOs
Top First Day Returns
US IPO Stats
IPO Average Age
IPO Industry Breakdown
Offer Price Discounts
Global IPO Stats
IPOs by Region
IPO Industry Breakdown
2012 US IPO Review
2012 Global IPO Review
3Q US IPO Review
3Q Global IPO Review
Press Contact Form
Free iPhone App
Free Android App
IPO News Feed
IPO News Archive
Interested in IPO Investing?
Seven US IPO filings mark the beginning of 2012
Analyst IPO Blog
Although prolonged uncertainty in Europe is keeping the IPO market fragile, there is cause for optimism after the first week of 2012. US employment gains are exceeding expectations, the Russell 2000 and S&P are nearing 3-month highs, and the VIX has remained under 25 for the third straight week. This was the cheery backdrop for the
filing of seven significant US IPOs
, with estimated proceeds totaling over $1.8 billion. The new filings, all profitable on a cash flow basis, originated from the sectors that were most prominent in 2011: energy and technology.
The energy sector led the way with 3 new filings, reflecting a rise in oil prices, investor demand for yield and increased opportunities in US independent drilling. Last month, 7 of 11 pricings were energy related, and have posted an average return of -1% through January 6.
Two of the three filings were by trusts: Pacific Coast Oil Trust (
), formed by Los Angeles-based Pacific Coast Energy, registered with the SEC for a $345 million initial public offering on Friday and owns net profits interests in 265 producing wells. SandRidge Mississippian Trust II (
), formed by Oklahoma City-based SandRidge Energy, registered with the SEC for a $604 million initial public offering. It holds royalty interests in 67 producing horizontal wells and 206 horizontal development wells in the Mississippian formation. An independent company made the third filing. Ute Energy (
), an oil and natural gas E&P operating in the Uinta Basin, filed with the SEC to raise up to $250 million in its IPO. The Denver, CO based company, founded in 2005, booked $70 million in sales for the 12 months ended September 30, 2011.
Another energy company, Renewable Energy Group (
), launched the first US IPO of the year
and is pricing next week
. Among typically low or zero revenue biofuel companies, the Ames, IA based company is notable for its $627 million in sales for the 12 months ended September 30, 2011. The largest producer of biodiesel in the United States, it emerged from a large group of biofuel companies in the IPO pipeline.
Three technology companies filed last week. Millennial Media (
), the number two mobile ad platform, reaches all major mobile operating systems and booked $69 million in sales for the nine months ended September 30, 2011, a 138% increase over the same period in 2010. Backers include Bessemer Venture Partners, Columbia Capital, Charles River Ventures, and New Enterprise Associates. Infoblox (
), a data center provider, is backed by Sequoia Capital and has reached over 5,000 customers, including Boeing, IBM, and Johnson & Johnson. Its CEO, Robert Thomas, and CFO, Remo Canessa, previously held the same roles for NetScreen Technologies, which sold for $4 billion in 2004. For the 12 months ending October 31, 2011, sales reached $143 million. Health benefits manager Extend Health (
), backed by venture capital firm Psilos Group Managers, had sales of $55 million for the 12 months ended September 30, 2011. Also filing was Peruvian cement producer Cementos Pacasmayo (
), which is already listed in Peru and currently sees minimal trading volume.
On Monday, Guidewire Software (
), announced it would be pricing on January 24th. The on-demand subscription software provider posted net profits of $38.5 million for the twelve months ended October 31, 2011, and sales grew by 51% for the most recent quarter. Based in San Mateo, CA, the company plans to raise $82.5 million by offering 7.5 million shares at a price range of $10.00 to $12.00.
Despite mixed performance in the second half of 2011, the US IPO backlog now numbers 210, the highest level since 2000.
Keywords / Tickers: US IPO Pipeline, Technology, Biofuel, Renewable Energy, Oil,
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:
IPO investment firm Renaissance Capital (www.renaissancecapital.com)
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 Global IPO Fund (symbol: IPOSX) or the Renaissance IPO ETF (symbol: IPO), may have investments in securities of companies mentioned.
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. 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.
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.
is current value at which an asset or service can be bought or sold.
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 S&P 500® Index (SPX)
is a stock market index based on the market capitalizations of 500 large companies whose common stock is publicly traded on the NYSE. The S&P 500 index components are determined by S&P Dow Jones Indices.
The Russell 3000® Index (RAY)
is a stock market index of US stocks which measures the performance of 3,000 publicly held US companies based on total market capitalization. The Russell 3000 index components are determined by Russell Investments.
Investments in the
Renaissance IPO ETF, symbol "IPO"
(the “ETF”) and the
Global IPO Fund, symbol "IPOSX"
(the “Mutual Fund”) are subject to investment risk, including possible loss of the principal amounts invested. The ETF and the Mutual Fund (the “Funds”) invest in companies that have recently completed their initial public offerings. These stocks may be subject to extreme price volatility and speculative trading. The Funds may also be subject to information technology risk, small and mid-capitalization company risk, REIT risk, Master Limited Partnership (MLP) risk, non-U.S. issuer risk and replication management risk. ETF returns may not match the return of the respective index. The ETF is classified as a non-diversified investment company and is subject to concentration risk. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with information about the Funds please visit
. Read the prospectus carefully before investing. Renaissance Capital Investments, Inc., distributor for the Mutual Fund. Foreside Fund Services, LLC, distributor for the ETF, 1-866-486-6645.
Renaissance Capital LLC is an SEC-registered investment adviser.
Renaissance Capital Investments, Inc. is a
-registered broker-dealer, and member of
© 2013 Renaissance Capital LLC. All rights reserved.