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: Ten deals set to raise $1.5 billion
Analyst IPO Market Commentary
In a week that could see ten IPOs, only one is a biotech.
, there are profitable, cash-flow positive companies; there are tech companies ranging from payment processing to email security; there are two companies that aim for customers in the great outdoors; and there are various others. Next week is unusual in that it has ten deals and only one is a biotech. Several companies filed this week; next week is the last week to file if you want to get the IPO done by Christmas.
Hip to be square
Jack Dorsey’s Square (
), one of the most highly-anticipated IPOs of the fourth quarter, expects to raise $324 million next week at a market cap of $4.5B, below its last private round. The company has been unprofitable to date. The company had a deal with Starbucks that ultimately failed and will phase out by next year. Square started as a payment processor, but has recently gotten into e-commerce (Square Store), online/mobile payments (Square Cash) and restaurant and food delivery (Caviar). Investors may be skeptical of Dorsey’s dual role as CEO of Twitter and Square.
Will investors swipe right?
Match Group (
), a spinoff from IAC, controls four of the five most recognized brands in the online dating industry (Match.com, Tinder, OkCupid and PlentyOfFish), along with 41 other brands, with 59 million combined monthly active users in 38 countries. Match has completed 25 acquisitions since the start of 2009 (including PlentyOfFish for $575 million in October 2015) and expects to continue pursuing acquisitions. The company is set to raise $433 million, which it intends to use to repay related-party indebtedness to IAC.
For the outdoorsmen (and women)
Duluth Holdings (
) hopes to raise $100 million to fund the expansion of its retail presence. The company believes that its concept can support 100 US store locations. Its durable products are sold under the Duluth Trading brand and includes Longtail T shirts, Buck Naked underwear and Fire Hose work pants. The company uses storytelling and humor in its national ad campaigns that feature Giant Angry Beaver, Buck Naked Guy and Grab-Happy Grizzly. It is coming public during a major retail sell-off, so it could face pricing pressure despite its above-average margins and strong brand.
Formed through the rollup of two companies in 2007, Truck Hero (
) has since acquired another seven to become a leading provider of pickup truck accessories in North America. Most of its products are priced between $100 and $5,500, with the average truck bed cover retailing for $700, and its products are mostly sold for vehicles that are over one year old. TA Associates bought a majority stake in a 2014 transaction that valued the company at $613 million. Next week, the company expects to raise $200 million at a market cap of $710 million.
Doing the German conga
Germany-based congatec (
) is a fabless provider of high performance embedded computing solutions, primarily in the fast-growing industrial automation and medical end markets. The company has achieved faster- han-industry top-line growth at an 18% CAGR from 2012-2014 while maintaining profitability. congatec expects to raise $60 million next week at a market cap of $263 million.
This MIME looks to make some noise
Founder-led and VC-backed Mimecast (
) hopes to raise $85 million next week. The company provides next-generation, cloud-based email security and archiving software solutions. It boasts a 97% customer retention rate and 36% top-line constant currency CAGR FY13-15. It aims to replace cumbersome point and on-premise solutions with its fully integrated, comprehensive software suite.
Noble Midstream is the primary midstream services provider for parent Noble Energy (
) in the Denver- ulesburg Basin in Colorado. It looks to raise $250 million next week, and it plans to distribute all available cash quarterly; at the expected offer price of $20 per share, Noble Midstream's $0.3125 quarterly dividend represents an annual yield of 6.25%. It is the first oil and gas IPO since PennTex Midstream in June.
The only biotech next week, Axsome Therapeutics (AXSM), is developing an oral formulation of an existing therapy for pain and osteoarthritis. It looks to raise $51 million. Chinese manufacturer Sole Elite Group (SOLE) and Andina Acquisition Corp II (
) hope to price their IPOs next week.
Renaissance Capital's IPO
- Week of
$12.00 - $14.00
Allen & Company
BofA Merrill Lynch
Leading online dating company being spun off from IAC.
San Francisco, CA
$11.00 - $13.00
Mobile payment service provider for small businesses.
Noble Midstream Partners LP
$19.00 - $21.00
MLP formed by Noble to own oil and gas gathering assets in Colorado's DJ basin.
Ann Arbor, MI
$17.00 - $19.00
BofA Merrill Lynch
Roll-up manufacturer and distributor of branded pickup truck accessories.
$14.00 - $16.00
Sells Duluth brand work and outdoor apparel via its website, catalog and stores.
London, United Kingdom
$10.00 - $12.00
Provides cloud-based email archiving and security solutions.
$10.00 - $12.00
Needham & Co.
German fabless provider of embedded computer-on-module solutions.
New York, NY
$11.00 - $13.00
Ladenburg Thalmann & Co.
Developing an oral formulation of an existing therapy for pain and osteoarthritis.
Andina Acquisition Corp II
New York, NY
$10.00 - $10.00
EarlyBird Capital, Inc.
Blank check company formed to acquire South American businesses.
IPO Pipeline Update: Software, subprime and surgical devices
Six companies filed for IPOs this past week including profitable, high-growth software company Atlassian, subprime lender Elevate Credit, high-growth medical device maker Surgiquest and three others.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 7% year-to-date, compared to -1% for the S&P 500. Renaissance Capital's
(NYSE: IPO) tracks the index, and
top ETF holdings
include Alibaba (
), Citizens Financial Group (
) and Hilton Worldwide (
). The Renaissance International IPO Index is down 3% year-to-date, compared to -5% for ACWX. Renaissance Capital’s International
(NYSE: IPOS) tracks the index, and
top ETF Holdings
include Recruit Holdings and Samsung C+T.
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.