Our Passion for IPOs
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
Press Contact Form
Register for IPO Updates
Follow us on g+
Like us on Facebook
Follow us on LinkedIn
Free iPhone App
Free Android App
IPO News Feed
IPO News Archive
New Ways to Invest in IPOs - IPO ETFs
US IPO Pricing Recap: Three small and discounted deals price before the holiday
Analyst IPO Blog
Three IPOs each raised less than $50 million during the shortened holiday week. Two biotechs and one regional bank all priced below their proposed ranges, but finished the week above the IPO price. Last week's IPO activity continues what we saw in the second quarter: Deals are still being completed if companies are willing to adjust valuations. Not all deals go through though, as Taggares Agriculture, which operates vineyards and apple orchards in the Pacific Northwest, withdrew plans for its $46 million IPO ($54 million market cap).
) had the week's greatest gains, trading up 11% on its first day and 7% in the aftermarket. The company originally planned to raise $60 million at a $207 million market cap in September 2012, but postponed its IPO and withdrew in October 2013. This time, the company went public only after slashing its IPO price 38% and reducing shares, resulting in an IPO that raised $15 million and initially valued the company at a $52 million market cap. The immunotherapy biotech stimulates white blood cell creation instead of antibodies, and is in Phase 2 trials for hepatitis B and pancreatic cancer. Minerva Neurosciences (
), which is developing treatments for symptoms of schizophrenia and insomnia, cut its price by 45% from the midpoint and traded up 2%. Its possible that investors could decide that these "bargain biotechs" offer an attractive risk/reward opportunity, as the eleven other biotechs discounted over 25% this year have gained an average of 36%.
), which operates ten banks in southern Louisiana, became the year's sixth (and smallest) bank to go public, and the latest to face investor pushback. The company priced below its range and finished the week trading just above its IPO price. Financial companies were the second quarter's worst-performing sector, dragged down by negative returns from banks in particular.
Renaissance Capital's 2Q14 US IPO Market Review
to find our analysis of the busiest quarter for IPOs in 14 years (83 companies raised $21 billion), including what to expect in the third quarter.
IPO pricings (week of June 30, 2014)
Deal Size ($mm)
IPO Price vs. Midpoint
Return as of 7/4
Biotech: Hepatitis B and pancreatic cancer
Minerva Neurosciences (
Biotech: Treatments for CNS disorders
Investar Holding (
Louisiana bank with ten branches
IPO market snapshot
So far this year, 148 IPOs have raised $31.5 billion and produced an average first day return of 14%. The Renaissance IPO ETF (symbol:
), a float cap-weighted basket of newly public companies and indicator of post-IPO performance, has gained 5% compared with 7% for the S&P 500. Over the last 30 days, the IPO ETF has risen 5% compared with 2% for the S&P 500, as the IPO market's recovery outpaces steady gains in the broader market. The active IPO pipeline now includes 141 companies looking to raise a total of $52.4 billion.
Keywords / Tickers:
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.
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.
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.
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)
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
© 2014 Renaissance Capital LLC. All rights reserved.