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
Weekly Recap: 2013 US IPO calendar builds quickly
Analyst IPO Market Commentary
Throughout the past decade,
US IPO pricings
have fallen in January after heavy end-of-the-year activity, but 2013 appears likely to break the trend. Following December's four pricings, nine deals are already on the
for January, including five scheduled to price this week. Last week, as the VIX hit a five-year low, six companies set terms and launched deals. Half of the new deals are from MLPs, and five of the six are expected to price this week. Early Monday, Bright Horizons (
), which provides employer-sponsored child care services, set terms for a $202 million IPO.
A REIT for outsourced data centers
), which operates data center REITs primarily in Texas and Ohio, set terms for a $281 million IPO. The Cincinatti Bell carve-out 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 particular, close peer CoreSite Realty (
) is currently trading at an all-time high and is up over 40% from its mid-November price.
Hoping for a cruising recovery
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, which is looking to raise $400 million, 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.
The LP wave continues
Like CyrusOne, the LPs will also seek to take advantage of strong performance by their peers. Since September, nine LPs have have gone public, of which eight have traded up and three have risen by more than 40%. 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 8% since its December debut. Icahn Enterprises has indicated an interest in buying $100 million on the offering. SunCoke Energy Partners LP (
) produces metallurgical coke used in steel production and set terms for a $270 million deal. USA Compression Partners (
), which provides natural gas compression services, originally filed for an IPO in June 2011 and was likely encouraged to launch its deal after the run of successful LP IPOs.
The sixth company to set terms last week, LipoScience (
), provides an LDL diagnostic test to assess cardiovascular disease risk. The company, which plans to raise $70 million, previously attempted to go public in 2002.
Five companies added to the pipeline
Pipeline activity was also robust in the first full week of the new year. Five companies, tied for the highest weekly total since August, added more than $800 million to the US IPO pipeline. The biggest deal came from Brazilian offshore driller QGOG Constellation (
), which filed for a $500 million IPO. The company had $747 million in sales for the twelve months ended September 30, more than 90% of which came from Petrobas (NYSE: PZE). QGOG first filed confidentially in April 2012.
ZAIS Financial (
), a REIT investing in agency and non-agency RMBS, filed for a $140 million IPO. The company is externally managed by a subsidiary of ZAIS Group, an investment adviser with $5.5 billion AUM, and filed confidentially in November. 3D printer manufacturer ExOne (
), New Jersey bank ConnectOne Bancorp (
) and money transfer service provider Xoom (
) filed to raise $75 million, $58 million and $50 million, respectively.
US IPO pipeline
now holds 122 companies looking to raise $36.7 billion. Of these, 53 have released updates within the past 90 days.
US IPO market performance update
Activity may have been light at the end of 2012, but
have soared, which should provide a tailwind to 2013's first IPOs. US IPOs from the past 90 days have produced an average total return of 30% and an average aftermarket return of 17%. All ten deals from November and December are trading above their offer price.
Keywords / Tickers: USIPOMarket, BFAM, CONE, NCLH, CVRR, SXCP, USAC, LPDX,
, ZFC, XONE, CNOB, XOOM
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.