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 Pipeline Update: Eight companies added to next week's IPO calendar
Analyst IPO Market Commentary
Three small and discounted
IPOs priced last week
, but nothing set terms ahead of the long holiday weekend. However, the past Monday and Tuesday saw eight companies join the IPO calendar for next week, as a result of both the small backlog that built up and the perception of an open IPO window. Only one has over $100 million in annual revenue. The largest by market cap, TerraForm Power (
), is a solar energy dividend play carved out of SunEdison (SUNE). All but one (Roka Bioscience,
) are set to price on Thursday, July 18.
For new IPO filings, the four-day week before Independence Day did not see slower activity as 15 companies filed, with two more added to the pipeline so far this week. Biotechs continue to pack the pipeline (six since last Monday), suggesting the sector's breakout levels could remain high as we enter the third quarter.
Two largest: Solar energy spinoff and pet insurance company
TerraForm Power, expected to raise $401 million at a $2.0 billion valuation, will be SunEdison's second spinoff this year, following the IPO of SunEdison Semiconductor (
) in May (up 34% from its IPO). Close peers NRG Yield (
) and Abengoa Yield (
) have traded well, with NRG up a total of 130% since its July 2013 IPO and Abengoa up 29% since June 2014 after both priced above the range. The week's second largest deal to set terms so far this week was Seattle-based Trupanion, a fast-growing medical insurance provider for cats and dogs. While Obamacare's insurance mandate does not extend to cats and dogs, companies like Trupanion (
) benefit from rising veterinary costs and the capability to perform complex procedures, along with consumers' willingness to spend more on their pets (2013 biotechs Aratana (
) and Kindred (
), sales growth in organic pet food).
Tech-related: One adtech SaaS provider and one IT outsourcing firm
), which offers businesses outsourced IT work using its team of cloud, mobile and big data specialists, set terms to raise $76 million after spending nearly one year on file. The Argentina-based company generates 80% of revenue from North American clients, which include Google (GOOGL), LinkedIn (LNKD), Verizon (VZ) and Sabre (
). TubeMogul (
) provides an automated platform for companies to manage online video ad campaigns, but will also carry out the online video advertisement objectives for larger customers. TubeMogul indicated that 27% of the deal may be covered by insider buying, which could be necessary given that close peers YuMe (
) and Tremor Video (
) have traded down about 20% and 30% YTD, respectively.
Health care: Two biotechs, one diagnostic company and one lab equipment maker
Roka Bioscience (
), an early-stage maker of laboratory equipment that uses molecular diagnostics to test for pathogens (like salmonella) in food, is targeting a $75 million deal size, or about 28% of its diluted market cap. Insiders, which include OrbiMed, NEA, TPG and Fidelity, plan to purchase $15 million on the offering. CareDx (
) sells molecular diagnostic tests to monitor heart transplant patients, and has come back to the IPO market after originally filing to raise $86 million in 2007 and withdrawing one year later. Its well-known backers include KPCB, TPG, Credit Suisse's Sprout Capital and Intel. Iradimed (
), a microcap maker of non-magnetic MRI-safe IV infusion pumps, set terms this morning to raise $10 million, but has not selected a pricing date.
Sage Therapeutics (
), the largest of the four health care companies by market cap, is in Phase 1/2 trials for an adjunct therapy to treat a rare and deadly state of persistent seizure. It is primarily backed by Third Rock Ventures, but Arch and Fidelity also have significant stakes. Last, Pfenex (
) is an early-stage biotech developing a biosimilar version of Roche's lucrative treatment for wet AMD, Lucentis. In 2009, the company was spun out of Dow Chemical, the largest current shareholder, to develop its protein therapy platform. Amphastar (
), which went public in late-June, is also developing biosimilars of commercially successful drugs, but Pfenex's market is much larger. Amphastar's stock has traded up 29% from its heavily discounted IPO price; it is still below the original range.
IPO terms filings since Monday
Deal Size ($mm)
Market Cap ($mm)
LTM Sales ($mm)
TerraForm Power (
Spinoff of SunEdison solar assets
Medical insurance for cats and dogs
Argentina-based outsourced IT provider
SaaS platform for digital video ads
Roka Bioscience (
Food safety testing equipment
Biotech: Version of Roche's Lucentis
Sage Therapeutics (
Biotech: Life-threatening seizures
Molecular diagnostics for heart transplants
MRI-safe IV infusion pumps
17 companies have submitted initial filings since last Monday. Health care companies dominate the list, including five biotechs, a small diagnostics company and Diplomat, a large independent specialty pharmacy. Energy companies also made a strong showing with four filers that included two E&Ps (one large and one small), a marine oil and gas storage spinoff and a major offshore oil well appraiser. There were three technology filers, including a Chinese mobile game publisher and two cloud companies that are both expected to raise $75 million - Yodle (
) and Yodlee (
). The largest new addition to the IPO pipeline was Zayo Group, which owns a large bandwidth infrastructure network composed of fiber optic cables, and could raise $500 million or more. OM Asset Management (
), a spinoff of London-based insurer Old Mutual with over $200 billion AUM, has received media attention for its IPO that could raise over $250 million.
IPO initial filings (since June 30, 2014)
Deal Size ($mm)
LTM Sales ($mm)
Zayo Group Holdings (
Fiber optic bandwidth infrastructure
Expro Oilfield Services (
Offshore oil well flow management and appraisal
Vantage Energy (
Oil and gas E&P in the Marcellus Shale
OM Asset Management (
Asset management arm of insurer Old Mutual
Plastic packaging for beauty products
Hoegh LNG Partners LP (
Höegh LNG spinoff owning floating storage and regasification units
iDreamSky Technology (
Chinese mobile game publisher
Diplomat Pharmacy (
Fourth largest specialty pharmacy in the US
Avalanche Biotechnologies (
Biotech: gene therapy for wet AMD
Auris Medical Holding (
Biotech: treatments for inner ear disorders
Online marketing platform for small businesses
SaaS platform for businesses to develop financial apps
Viamet Pharmaceuticals Holdings (
Biotech: fungal disease protein therapeutics
T2 Biosystems (
Developing diagnostics for sepsis and hemostasis
Loxo Oncology (
Biotech: small molecule treatments for solid tumors
Viking Therapeutics (
Biotech: diabetes and other disorders
Imperial Resources (
Appalachian Basin E&P spun out of Empire Energy
*Deal size is RC estimate
IPO market snapshot
So far this year, 148 IPOs have raised $31.5 billion and produced an average first day return of 13%. The Renaissance IPO ETF (symbol:
), a cap-weighted basket of newly public companies and indicator of post-IPO performance, has gained 1% compared with 6% for the S&P 500. Over the last 30 days, the IPO ETF has risen over 1% compared with less than 1% for the S&P 500, suggesting that the IPO market is likely receptive enough to new issuance for high deal flow to continue. The active IPO pipeline includes 142 companies looking to raise a total of $52.3 billion.
Keywords / Tickers:
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.