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
US IPO filing activity slows with only six new S-1s in last two weeks
Analyst IPO Market Commentary
Global market volatility and rising recession fears finally began to take its toll on new IPO filings as the stream of S-1s at the SEC slowed to a trickle by the end of the month. While the
first two weeks of September saw eleven new filings
, only six companies announced intentions of going public in the second half of the month, four of which were clean tech firms. The US
now stands at 210 companies looking to raise a potential $53 billion in capital. 68% of the companies in the pipeline have either submitted new or updated filings with the SEC in the last 90 days, indicating that most companies are intent on keeping their IPO plans active despite the current market environment. This suggests that we could see pockets of activity once the market is able to find some stability.
Four new renewable energy companies entered the US IPO pipeline in the second half of September, for a total of 13 IPO candidates in the clean tech sector. The relatively risky companies (all are unprofitable and one has generated zero revenue) will serve as a test for investor appetite. Several recently public biofuel companies have experienced wild swings in their stock prices, including KiOR (
; +12% from IPO), Solazyme (
; -50%) and Gevo (
, a producer of biofuels through the conversion of municipal solid waste (MSW),
filed with the SEC to raise up to $115 million in its IPO
. The Pleasanton, CA-based company, which was founded in 2007 and has generated no revenue to date, plans to list under the symbol
, which produces chemicals used in household products from renewable natural oils,
filed with the SEC to raise up to $100 million in its IPO
. The Woodridge, IL-based company, which was founded in 2007 and booked $21 million in sales for the 12 months ended June 30, 2011, plans to list on the NASDAQ under the symbol
, which has developed a platform to convert renewable feedstocks into chemicals used in alternative fuels,
filed with the SEC to raise up to $100 million in its IPO
. The Lebanon, NH-based company, which was founded in 2005, booked $16 million in sales for the 12 months ended June 30, 2011.
Trellis Earth Products
, which develops bioplastics-based products for use primarily in the food industry, including disposable deliware, cutlery, trash liners and shopping bags,
filed with the SEC to raise $22 million in its IPO
. The Wilsonville, OR-based company, which was founded in 2006 and booked $3 million in sales for the 12 months ended June 30, 2011, plans to list on the NASDAQ under the symbol
September's filings also included two hydraulic fracturing companies, FTS International (also known as Frac-Tech Services), which plans to raise $1.15 billion in its IPO, and Platinum Energy Services, which plans to raise $300 million. The two companies follow in the footsteps of fracturing services provider C&J Energy Services (
), which gained 5% in its July debut before falling victim to market headwinds; the stock now trades 49% below its IPO price of $29.
Despite this summer's market volatility, private equity and venture capital firms continue to view the public markets as a viable exit strategy, with financial sponsor-backed companies representing ten of September's 17 filings. The US
now includes 116 financial sponsor-backed companies, representing 55% of the total. 66% of US IPOs priced year-to-date have been backed by private equity or venture capital firms.
Keywords / Tickers: USIPOPipeline, Biofuel, CleanTech, RenewableEnergy, FLCM, ERSI, MSCA, TREL
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 based on the market capitalizations of 500 large companies whose common stock is publicly traded on the NYSE.
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.