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 Week Ahead: IPO market discovers whether unicorns can fly with tech firm Twilio
Analyst IPO Market Commentary
All eyes are on communications tech IPO
of its offering will send a
to other tech unicorns that have been
out for sky-high valuations.
It is the first Silicon Valley "unicorn" to go public since
; +1%) in November and
; -41%) in October. Twilio will show how IPO investors value unprofitable software providers with explosive growth. After recent stumbles from mature companies with cyclical models (Atkore, PSAV), it represents a secular growth story in app development. More broadly, its IPO is one step in the process of marking down private market valuations meeting the realities of the public market. We do not expect the floodgates to open immediately, but it could still serve as a turning point for 2016 tech IPO activity.
Renaissance Capital's IPO Calendar - Week of 6/20/2016
San Francisco, CA
$12 - $14
Provides APIs that enable developers to embed voice, messaging and video.
$14 - $16
UBS Investment Bank
Developing nanoparticles that modulate the immune system to enhance biologics.
Tactile Systems Technology
$14 - $16
Sells at-home compression therapy devices for vascular swelling.
$11 - $13
RBC Capital Markets
Developing a novel nonstatin therapy to treat high cholesterol.
Twilio: the API IPO
Founder-led Twilio provides the #1 platform for adding voice, messaging and video to mobile apps. Its customers include Uber, WhatsApp, Zendesk, Coca-Cola and thousands of app developers. Sales grew 78% in the first quarter, faster than nearly every comparable SaaS provider. The high-growth space has attracted more competitors, and Twilio will need to demonstrate the unique value of its platform to remain the market leader. While it has a lower gross margin than peers and expects to remain unprofitable, Twilio was cash flow positive in the first quarter. The deal appears structured to work well initially, with a relatively small float, insider buying and a valuation discount to peers.
One profitable and growing medical device company and two biotechs with insider buying are also on the
, showing that the healthcare sector is as healthy as ever, accounting for 21 of the 38 IPOs this year (55%).
Invisible Touch: A medical device with growth and profitability
Tactile Systems Technology
), which markets pneumatic compression devices for lymphadema, plans to raise $60 million. Unlike the year's other four medical device IPOs, Tactile boasts meaningful sales, growth and profitability. Valued below its peers, it must continue to grow sales of its core Flexitouch system while keeping marketing spend in check as it navigates expiring patents and a negative reimbursement ruling from Medicare.
Two biotechs: Gemphire hopes for a hidden gem as Selecta asks investors to think nano
) aims to raise $64 million in order to develop its biodegradable nanoparticles, which it is currently developing as an adjunct therapy for gout. The company posted positive Phase 1b results, but has a large accumulated deficit and only one clinical candidate. The company is backed by Polaris Partners, Flagship Ventures and OrbiMed, and insiders are investing $40 million on the IPO (63%).
) plans a $45 million IPO at a market cap of $125 million. Led by the former CEO of ProNAi Therapeutics (
; -88%), Gemphire is developing a drug first discovered in 1998, which it believes can be an effective treatment with statins for high cholesterol. Insiders are investing $10 million on the IPO (22%).
Find out why institutional investors rely on Renaissance Capital's
for these IPOs.
Follow us on Twitter (
) for IPO news as it happens and
register for our updates
on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 6% year-to-date, while the S&P 500 is up 2%. Renaissance Capital's
(NYSE: IPO) tracks the index, and
top ETF holdings
include Alibaba (
), Synchrony Financial (
) and Citizens Financial Group (
). The Renaissance International IPO Index is down 7% year-to-date, while ACWX is flat. Renaissance Capital’s International
(NYSE: IPOS) tracks the index, and
top ETF holdings
include NN Group and Recruit Holdings.
To find out if this is the best ETF for you, visit our
IPO Investing page
Keywords / Tickers:
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.
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.
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 which includes 500 U.S. listed companies and seeks to capture approximately 80% coverage of available U.S. market capitalization.
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 or Nasdaq.
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.