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
Week ahead: 10 IPOs set to price during the week of July 27
Analyst IPO Market Commentary
The largest biotech ever to go public is on
for this week, targeting a $2.2 billion valuation at IPO.
Ten IPOs and two blank check companies plan to raise over $2 billion. Half are set to have a market cap of less than $200 million, and for these our
takers have less than great expectations.
A killer cure for cancer: NantKwest could be largest biotech to go public
) has the makings of a hot IPO. Larger biotechs have typically outperformed their smaller counterparts, and this company will have the largest market cap at IPO out of any biotech in at least 20 years. Owned and led by billionaire physician Patrick Soon-Shiong, NantKwest is in the early stages of developing "off-the-shelf" immunotherapies for cancer. Soon-Shiong and Franklin Templeton will invest up to $55 million, reducing the company's already-low float to about 4% of the fully-diluted market cap. Celgene (CELG) is purchasing $17 million worth of shares in a private placement. Most immunotherapy biotechs have focused on T-cells instead of natural killer cells, meaning certain health care investors will likely buy NantKwest to diversify a portfolio of cancer immunotherapies. Even with over $280 million in post-IPO cash, NantKwest will require additional funding as it targets 26 indications, including various blood cancers and solid tumors. It even claims its technology may be used to treat infectious diseases like Ebola as well as inflammatory diseases. Despite several positive signs for near-term trading, investors must grapple with supporting a multibillion-dollar valuation for a company with just one IND submitted to the FDA.
Turn on the vTv: Large Alzheimer's biotech also backed by billionaire
) has met its primary Phase 2 endpoints for Alzheimer's disease, unlike other therapies in development. Formerly TransTech Pharma, it has also lost over $550 million since it was bought by billionaire Ron Perelman's investment firm MacAndrews & Forbes in the 1980's. Its proposed $525 million market cap would make it larger than 85% of biotechs since 2013 at the time of IPO, and Perelman's company is investing $25 million on the offering. In June, Alzheimer's biotech Axovant (
) priced an upsized IPO above the midpoint at a $1.5 billion valuation and gained 99% on its first day, but the company has since fallen close to its offer price.
Shine on: Year's 2nd largest IPO from a wind and solar power spinoff
) is on the calendar to raise over $1.1 billion in what would be the year's second largest IPO. Spun out of SunEdison (NYSE: SUNE), this "yieldco" will own nearly $4 billion worth of wind, solar and hydro-electric assets in emerging markets like Brazil, India, Honduras and China. It targets an annual yield of 5.5%, The company's fixed-rate contracts with state-owned utilities could generate cash for almost 20 years, and TerraForm has a large pipeline of assets for dividend growth. However, the renewable energy space has sold off from its earlier highs: June IPO 8point3 Energy Partners LP (
) is down 22% from its offer price and July 2014 IPO TerraForm Power (
) has traded off 21% in the past month.
Two more yield IPOs: ships and apartments
) is set to be the week's second-largest IPO with a deal size of $231 million. It targets a market cap of $517 million with an enterprise value of $1.1 billion. It has over $600 million in post-IPO debt and plans to offer a dividend beginning in November. All three of the year's transportation IPOs have traded down on the first day.
Riverbanc Multifamily Investors
) is a recently-formed REIT managed by CEO Kevin Donlon's RiverBanc LLC and backed by Ellington and New York Mortgage Trust (Nasdaq: NYMT). It will own debt and equity interests in apartment units primarily located in Texas and the Southeastern US.
We'll do it live: Production services firm to raise $208 million
) is a top global player in a $10 billion industry, though the company is experiencing little growth (<1% organic) and pressured margins. LBO'd by Crestview Partners in 2012, the outsourced provider of entertainment production equipment and personnel must balance its high floating-rate debt with an acquisition-based growth strategy.
), which trades on the OTCQX, plans to raise $16 million at a valuation of about $200 million. The profitable company licenses the Isaac Mizrahi and Judith Ripka brands, as well as sub-brands of Halston and Liz Claiborne. It has made acquisitions in exchange for equity, most recently Chris Burch's bankrupt fashion brand C Wonder. Close peer Cherokee (NASDAQ: CHKE) is up about 40% year-to-date.
Two small biotechs: Reformulations of eye drops and Parkinson's drugs
) had attempted list on the Nasdaq in September ($101 million market cap), November ($53 million) and February ($43 million), at which point it instead raised about $4 million (75% from insiders) and began trading on the OTCQB. The late-stage combination drug/delivery biotech has seen its thinly-traded stock soar as it signed a license agreement with Valeant (NYSE: VRX), began dosing its first patient for macular edema and received a patent on its reformulated version of a commonly-used eye drop.
), which trades on the Tel Aviv Stock Exchange, is the year's third foreign-listed biotech developing a reformulation of an existing therapy for Parkinson's disease, after June IPOs Biotie (
; +24%) and Cynapsus (
Renaissance Capital's IPO Calendar - Week of
July 27, 2015
Top 2 bookrunners
$19 - $21
Yieldco formed by SunEdison to own wind and solar power assets in emerging markets.
Poseidon Containers Holdings
$14 - $16
Containership operator with an initial fleet of 19 vessels.
$15 - $17
Largest global provider of outsourced live and broadcast production solutions.
$20 - $23
BofA Merrill Lynch
Developing cancer immunotherapies based on natural killer cells.
High Point, NC
$15 - $17
Biotech developing treatments for Alzheimer's disease and type 2 diabetes.
RiverBanc Multifamily Investors
$19 - $20
Keefe Bruyette Woods
Residential REIT formed to own debt and equity interests in apartment communities.
Developing an improved delivery method of carbidopa/levodopa for Parkinson's disease.
Developing an environmentally safe method of recycling used lead batteries.
New York, NY
$10 - $11
Licenses a portfolio of acquired apparel brands.
Late-stage biotech developing a treatment for eye inflammation.
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 pipeline update: Ferrari, First Data and Vizio join the pipeline
Three companies submitted
last week. Each has over $1 billion in annual sales, cueing them up for IPOs in mid-September at the earliest. First Data (
) had been one of the largest LBOs from the 2005-2007 buyout boom, and now it could be the largest IPO of 2015 with an estimated deal size of $5 billion. Ferrari (
), one of the world's most recognizable brands, filed for an IPO that could raise $1 billion. TV and soundbar maker Vizio (
) also filed. Filings from emerging growth companies should pick up in mid-August in preparation for post-Labor Day offerings.
IPO market snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has traded up about 7% year-to-date, compared to 1% for the S&P 500. Renaissance Capital's
(NYSE: IPO) tracks the index, and top
include Alibaba (
), Twitter (
) and Hilton Worldwide (
). After giving up all of its returns last week, the Renaissance International IPO Index is back up to a 6% gain year-to-date, compared to 1% for the ACWX. Renaissance Capital’s International
(NYSE: IPOS) tracks the index, and top
include Altice and Recruit Holdings.
To find out if this is the best ETF for you, visit our
IPO Investing page
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.