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
Register for Updates
Press Contact Form
Free iPhone App
Free Android App
IPO News Feed
IPO News Archive
Interested in IPO Investing?
Weekly Recap: Bright Horizons shines, six US IPOs set terms
Analyst IPO Blog
Child care provider Bright Horizons' (
) 29% first-day gain topped another positive week in the
US IPO market
. Both Bright Horizons and diagnostics company LipoScience (
) priced and traded up, while six more companies set terms to raise a total of $1.2 billion. All seven deals scheduled so far this year have priced, and if the trend continues with this week's five deals, it will be the
second most active January
of the past decade (trailing only January 2006's IPO deal count of 15).
Two deals gain more than 15%, but pricings reflect investor selectiveness
Bright Horizons, the largest provider of employer-sponsored child care with over $1 billion in sales, raised $222 million by pricing $1 above the range. The company has an 11-year history of revenue growth and EBITDA margin expansion, and the stock had a 17% annual return from 1997 until 2008, when the company was taken private by Bain Capital in a $1.3 billion LBO. On Friday, the stock closed at $28 for a first-day pop of 29%, just shy of Norwegian Cruise Line's (
) 30% first-day gain on January 18.
LipoScience, which provides a diagnostic test to assess cardiovascular disease risk, priced at $9, below the $13-$15 range. The company has doubled its sales to $54 million since it first tried to go public in 2002, but investor pushback on price likely stemmed from the company's recent sales growth deceleration, forecasted lack of profitability and a near-term business transition. With the large pricing discount, the company raised $45 million, and the stock closed at $10.45, up 16% on its first day of trading on Friday.
Six deals add $1 billion the IPO calendar
QGOG Constellation (
), which drills for oil and natural gas offshore in Brazil, set terms for a $550 million IPO, which would be the first US IPO from Brazil since Banco Santander Brasil's $4 billion IPO in 2009. The company derived more than 90% of its $747 million in sales over the last twelve months from Petrobas (PZE). Another foreign company, National Commercial Bank Jamaica (
), Jamaica's largest commercial bank, set terms for a $225 million IPO.
The third largest new deal, for $200 million, came from Boise Cascade Company (
), a building materials and forest products provider. Private equity firm Madison Dearborn acquired Boise Cascade for $3.7 billion in 2004. After an unsuccessful IPO attempt in 2005, Madison Dearborn sold the paper, packaging and newsprint segments to a blank check company (otherwise known as a SPAC), which now operates as Boise Inc. (BZ), for $1.6 billion. Boise Cascade, which is also backed by OfficeMax (OMX), booked $2.6 billion in sales over the last twelve months. Housing plays have performed well recently, with real estate brokerage company Realogy (
) and online real estate marketplace Trulia (
) up 65% and 50%, respectively, from their offer prices. TRI Pointe Homes (
), a homebuilder in California, is
scheduled to price its IPO
this week, at a time when housing sales are at multi-year highs.
Health Insurance Innovations (
), which offers medical insurance to the uninsured and underinsured, and AutoGenomics (
), a molecular diagnostics system provider, set terms for $70 million and $60 million IPOs, respectively. A sixth company, 3D printing company ExOne (
), set terms early on Monday for a $75 million IPO. All three companies are small (under $50 million in sales) with proposed market capitalizations under $200 million.
AutoTrader.com withdraws its IPO filing
No companies were added to the
US IPO pipeline
last week, while AutoTrader Group (
), which operates the largest digital automotive marketplace, withdrew a $300 million IPO. With four days left, January has seen only six initial filings, which would be a post-JOBS Act monthly low. The US IPO pipeline decreased slightly to 114 companies looking to raise $32.4 billion. The active pipeline (updated within the past 90 days) contains 45 companies seeking $12.4 billion.
US IPO market performance
While all three MLP IPOs traded down last week, two bounced back this week, and all but one of the year's seven deals are now trading above their offer prices. The average
total return for US IPOs
from the past 90 days is an impressive 29% (vs. 25% a week ago), and the average aftermarket return is 16% (vs. 14%). Year to date, seven IPOs have raised $2.1 billion (vs. $0.2 billion at this point last year), with an average total return of 15% and an average aftermarket return of 3%.
Keywords / Tickers: US IPO Market,
Recently Priced IPOs
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)
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 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.
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 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. The Funds may also be subject to information technology risk and small and mid-capitalization company risk due to a greater number of IPOs in these sectors. The Funds may hold securities in the form of Depository Receipts, REITs, Master Limited Partnerships (MLPs) which have greater risks than common shares. The strategy has high portfolio turnover and securities lending risks. 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 and/or summary 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.
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)
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
© 2014 Renaissance Capital LLC. All rights reserved.