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
Three IPOs to debut today as two others delay
Analyst IPO Market Commentary
In the strongest showing of
today's IPO group
Forum Energy Technologies
, a global products and services provider for the oil and natural gas industries, raised $379 million by offering 18.9 million shares (21% insider) at $20, at the high end of the proposed $18 to $20 range. The company had originally planned to offer 15.8 million shares (17% insider). Private equity firm Tinicum LP is expected to invest $50 million in a concurrent private placement. Forum Energy Technologies plans to list on the NYSE under the symbol FET. J.P. Morgan, BofA Merrill Lynch, Credit Suisse, Citigroup, and Deutsche Bank Securities acted as lead managers on the deal.
Forum Energy Technologies began as Access Oil Tools in 1985. Houston-based private equity firm SCF Partners acquired the company in May 2005 and reorganized it as Forum Oilfield Technologies. FOT filed for a $345 million IPO in October 2007, but market conditions led it to withdraw in February 2008. In August 2010, SCF Partners combined FOT with four other portfolio companies, creating Forum Energy Technologies. The current deal began in August 2011 with a filing for $300 million. SCF Partners is selling 5% of its stake will hold 59% of shares after the offering. In 2011, revenue rose 51% to $1.1 billion thanks to the completion of eight acquisitions during the year (organic growth was 23%) and higher drilling activity, spurred by an increase in oil prices. The acquisitions contributed to a 340 basis point improvement to 32% in gross margin and a 590 basis point improvement to 16% in operating margin. Net income for the year was $94 million.
Also expected to debut today are MRC Global and Oaktree Capital Group.
, the largest global pipes, valves and fitting (PVF) and services supplier to the energy industry, raised $477 million by offering 23 million shares (25% insider) at $21, the low end of the range of $21 to $23. MRC Global will list on the NYSE under the symbol MRC. Goldman Sachs and Barclays acted as joint bookrunners on the deal.
Oaktree Capital Group
, an alternative asset manager focused on debt with $75 billion in AUM, priced 8.8 million shares at $43, the low end of the $43-$46 range. The company had originally planned to offer 11.25 million shares, resulting in a total deal size 24% below that originally planned. All of the IPO proceeds are being used to redeem insider shares. Goldman Sachs and Morgan Stanley were the bookrunners on the offering, which is scheduled to list on the NYSE under the ticker OAK.
Two others that had planned IPOs for this week have cancelled or delayed their offerings.
, a global manufacturer of aluminum products and specification alloys, postponed its IPO on Wednesday. The Beachwood, OH-based company was founded in 2004 and booked $4.8 billion in sales for the 12 months ended 12/31/2011. J.P. Morgan, Barclays Capital and Deutsche Bank Securities were set to be the lead underwriters on the deal.
, which develops utility-scale solar thermal power plants, withdrew its plans for an initial public offering on Thursday, citing poor market conditions. The company had been scheduled to sell 6.9 million shares at a price range of $21-$23 on Wednesday evening. Goldman, Sachs & Co., Citi, and Deutsche Bank Securities were set to be the lead underwriters on the deal.
BrightSource's withdrawal shows that, despite the uptick in
IPO activity so far this year
(47 IPOs priced, up from 36 in the year-ago period) and the strong returns they have shown (the
FTSE Renaissance IPO Index
is up 15.1% YTD), investors continue to be discerning. In particular, BrightSource is the third alternative energy IPO to be pulled or delayed in recent weeks, following after Luca Technologies (LUCA) and Enerkem (NRKM). Investors continue to be skeptical of relatively early-stage companies with unproven technology that are spending significantly as they move toward commercialization. BrightSource's postponement may also reflect negative sentiment resulting from the high-profile bankruptcy of Solyndra, another solar company that, like BrightSource, was a beneficiary of DoE loan guarantees.
Yesterday's lone IPO,
, which provides aerial firefighting and timber harvesting service on heavy-lift helicopters, ended flat after pricing its offering at the low end of the downwardly revised range. There are currently six deals on the
for next week.
Keywords / Tickers: FET, MRC, OAK, EAC, BRSE,
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.