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 Weekly Recap: The last IPO of 2015
Analyst IPO Market Commentary
IPO of 2015
priced this week - 170 companies raised $30 billion this year.
On Thursday night, Yirendai priced, just the fifth Chinese company to price a US IPO this year, representing a 64% decline from the 14 Chinese companies that came public in 2014. None of the Chinese IPOs from 2015 would even make the top ten Chinese companies by proceeds raised in 2014. Eleven Chinese companies raised over $100 million last year; only Baozun crossed that threshold in 2015, raising $110 million in a May offering. This week, Yirendai raised $75 million, bringing the total 2015 proceeds for US-listed Chinese IPOs to $292 million.
), which is being spun out of CreditEase, provides a marketplace for peer-to-peer unsecured consumer loans in China. The company operates in an industry that has evolving regulations and over 2,000 competitors, but it has managed explosive growth nonetheless, growing revenue tenfold in 2014 and 2015 YTD. On Thursday, Yirendai priced its IPO at $10, the midpoint of the range, breaking issue in early trading and closing Friday down 9%, reflecting the difficult market conditions that have come to define the second half of 2015. Last December, On Deck Capital (
) raised $200 million in its IPO, pricing above the range and popping 40% in its first day. Lending Club (
) also priced above its range, raising $870 million and popping 56% in its debut. Like Yirendai, both companies are now trading below their offer prices; On Deck has fallen 53% and Lending Club has dropped -19%.
At its IPO price, Yirendai had a market cap of $585 million and an enterprise value of $490 million. Lufax (
), another Chinese peer-to-peer lender, recently
completed a round of fundraising
at an approximate valuation of $18 billion, securing its place as the world’s most valuable financial technology startup. China Rapid Finance (
), a Chinese consumer lending marketplace, raised $35 million in a Series C round in July, valuing the company at $1 billion.
5 US-listed Chinese IPOs in 2015
Deal size ($mm)
IPO price vs. midpoint
Return at 12/18
E-commerce and logistics services
Peer-to-peer lending marketplace
Wealth management services and products
Online mall connecting merchants and consumers
Yulong Eco-Materials (
Producer of fly-ash bricks and concrete
IPO Market Snapshot
In 2015, 233 companies filed for IPOs, easily replacing the 170 that came public. However, the total is -36% below the 364 companies that filed in 2014. The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 8.6% year-to-date, compared to -2.6% for the S&P 500. 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 4.2% year-to-date, compared with -8.5% for the ACWX. Renaissance Capital’s International
(NYSE: IPOS) tracks the index, and
top ETF Holdings
include Recruit Holdings and NN Group.
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.
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.