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Weekly Recap: 2013 US IPO market opens with five pricings
Analyst IPO Blog
Five companies raised $1.8 billion in a busy start to the
2013 US IPO market
last week. After a run of success for MLP IPOs in 2012, three LPs saw weak trading, partly due to relatively full valuations and perhaps also because of investor fatigue. Two other companies, Norwegian Cruise Line (
) and data center REIT CyrusOne (
), priced above the range and traded well. Three of the companies had market caps of more than $1 billion. Four companies set terms last week, including Pfizer's (PFE) animal health unit Zoetis (
) for a $2 billion deal. If all seven deals scheduled for the rest of the month price, it would be the
busiest January for US IPOs
All three MLP deals trade down
In the first IPO of 2013, USA Compression Partners (
), which provides natural gas compression services, raised $198 million. After falling 2% on its first day of trading, it finished the week down 3%. The largest deal of the week was a $600 million IPO from CVR Refining, LP (
), which owns petroleum refineries in Kansas and Oklahoma. The company, a carveout of CVR Energy (CVR), traded up slightly on its first day but closed Friday down 1%. The worst performer was SunCoke Energy Partners (
), which produces metallurgical coke used in steelmaking. A carveout of 2011 IPO SunCoke (SXC) it raised $257 million and ended the week down 4% from its offer price.
Norwegian Cruise Line gains 30 percent
The top performer of the week was Norwegian Cruise Line, the third largest cruise line operator in North America after Royal Caribbean (RCL) and Carnival (CCL). Both it and data center REIT CyrusOne priced one dollar above the range. Norwegian raised $447 million and gained 30%, while CyrusOne raised $314 and traded up 12%. CyrusOne was carved out of telecom Cincinnati Bell (CBB), which continues to own 80% of the company.
Four deals set terms
The first billion dollar deal of the year - and one of the most anticipated from the current IPO pipeline - launched on Thursday. Pfizer is spinning off its animal health unit, Zoetis, in a $2 billion IPO. Bain-backed Bright Horizons Family Solutions (
), the leading provider of employer-sponsored child care, plans to return to the public markets with a $202 million deal. Californian homebuilder TRI Pointe Homes (
) is looking to take advantage of a hot housing sector with a $176 million deal. Finally, KaloBios (
), a biotech focused on treating respiratory diseases and cancer, set terms for a $50 million deal.
Israeli biotech files for small deal
), a biotech developing a treatment for ADHD, made the only initial filing of the week. The Israeli company, which has not generated any revenue, filed to raise just $17 million, implying a post-IPO valuation deep in micro cap territory. There are now 118 companies in the
US IPO pipeline
, including 50 that have released updates in the past 90 days, looking to raise a total of $33.4 billion.
US IPO market performance
The mixed trading last week pulled down recent performance metrics. The average total
return for IPOs
from the past 90 days is 25% (vs. 30% as of a week ago), and the average aftermarket return is 14% (vs. 17%).
Keywords / Tickers: US IPO Market,
Recently Priced IPOs
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.
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
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.
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Renaissance International IPO ETF, symbol "IPOS"
(the “ETFs”), and the
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, or the
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, may have investments in securities of companies mentioned.
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