11/25/16 Analyst IPO Market Commentary
In the shortened Thanksgiving week, the US IPO market saw barely any activity, with a number of launches expected for the next week. The broader market continues to be supportive, with the Dow reaching an all-time high of 19,000 and the S&P 500 extending its post-election rally.
Presidio (PRDO.RC), an IT services company which was LBO’d by Apollo in 2014, filed on Tuesday to raise an estimated $400 million. The company, which offers digital infrastructure, cloud and security solutions to its over 7,000 predominantly middle-market customers, will be eligible to launch in the 1Q17. In the MRQ Presidio grew revenue by 7% to $738 million while adjusted EBITDA fell 2% to $58 million (7.9% margin).
Innovative Industrial Properties (IIPR), a newly-formed REIT focused on medical-use cannabis cultivation facilities, lowered its proposed offering size by 43% to $100 million on Friday. The company pushed back its pricing to the week of November 28, 2016, and announced management would forfeit some of its shares in order to lower valuation.
Athene (ATH), Mauser (MSR) and WildHorse Resource Development (WRD), all submitted amended filings. Two companies officially withdrew IPO plans this past week: construction products company EuraMax (EMAX; last updated in 2010) and semiconductor testing company UTAC (UTAC; last updated in 2015).
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 1% year-to-date, while the S&P 500 is up 8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Citizens Financial Group (CFG) and Alibaba (BABA). The Renaissance International IPO Index is down 7% year-to-date, while the ACWX is flat. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Recruit Holdings and Samsung C&T. To find out if this is the best ETF for you, visit our IPO Investing page.