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: Year's largest IPOs to raise $5 billion in a week that could see 10 offerings
Analyst IPO Market Commentary
It's a big week for big IPOs.
As many as 10 companies are on the
to go public, including the year's largest and second-largest initial public offerings. Six are set to raise less than $50 million, mostly holdovers that had been unable to price in prior weeks.
Two large pre-crisis leveraged buyouts - payments processor First Data and grocery chain Albertsons - are scheduled to return to the public market this week and raise a combined $4.6 billion. Both companies hold massive amounts of debt, but are on course to begin generating over $1 billion in free cash flow over the next two years. As we noted in the
, nine of the past ten IPOs came public below their proposed range, a trend that should continue in the week ahead.
First Data: Largest IPO of 2015
) is set to raise $3 billion in what will be the year's largest IPO, targeting a market cap of almost $18 billion ($36 billion enterprise value). In 2007, a KKR-led consortium bought the company for $29 billion in one of the largest-ever LBOs, but its debt nearly crippled the company until KKR (NYSE: KKR) doubled down in 2014 by leading a $3.5 billion recapitalization. First Data is the world's largest merchant acquirer, helping to process credit and debit card payments for over 6 million business locations across 118 countries. It boasts an experienced management team, including the former COO and CIO of JPMorgan Chase (NYSE: JPM), but will remain highly levered after the IPO with a debt level of 7x its LTM EBITDA.
Is Albertsons/Safeway a safe way to play the IPO market?
) is set to raise $1.6 billion at a market cap of $12 billion ($22 billion enterprise value). The company was formed by Cerberus Capital Management, which acquired Albertsons stores in 2006 and then doubled its size in January 2015 with the $8.5 billion acquisition of Safeway. It now hopes to leverage large cost-saving synergies as it uses its cash flow reduce its high leverage. As the the third-largest grocer in the US behind Walmart and Kroger, Albertsons Companies has the #1 or #2 market share in 68% of its MSAs, but an EBITDA margin below its closest peers.
Adesto: It's the IoT IPO
) claims that its low-power flash memory chips are ideal for "Internet of Things" devices, an industry expected to grow from $0.7 billion to $1.7 billion by 2019. However, that market may be growing without it - sales and gross margin both fell in the 1H15.
American Farmland Company
) is set to raise $114 million at a valuation of $252 million. It is the first REIT to go public in five months. The company owns 18 farms primarily in California, Illinois and Florida, and has set an annual dividend of $0.25, a 2.6% annual yield at its $9.50 midpoint. Three of the year's six REITs trade above the offer price, and the group has an average return of 1%.
Another large SPAC
Entrepreneur Mark Ein plans to raise $350 million for his third blank check company,
Capitol Acquisition III
), after merging Capitol II with Lindblad Expeditions (Nasdaq: LIND) in July. 2015 has seen more SPACs price than any year since 2007, including five that have raised $350 million or more, compared to just one during 2009-2014. We do not include SPACs in our IPO stats.
Six companies wait for their IPO window
Six companies that have delayed offerings, some for several weeks, will again seek to go public. The largest of these, RA Capital-backed endocrine biotech
), originally set terms to raise $76 million at a market cap of $423 million. Two biotechs and a small medical products company,
), are each looking to raise less than $30 million. Two profitable Chinese manufacturers, athletic shoe sole maker
Sole Elite Group
) and plastic cutlery producer Fuling Global (
), could also price this week.
Renaissance Capital's IPO Calendar - Week of 10/12/2015
New York, NY
$18.00 - $20.00
Provides payment processing to merchants and financial institutions.
$23.00 - $26.00
BofA Merrill Lynch
Third-largest US grocer operating under Albertsons, Safeway and other banners.
Capitol Acquisition III
$10.00 - $10.00
Blank check company formed and led by Mark Ein.
American Farmland Company
New York, NY
$8.50 - $10.50
Internally managed REIT with farmland in California, Illinois and Florida.
$17.93 - $17.93
BofA Merrill Lynch
Late-stage biotech developing therapies for rare endocrine disorders.
$10.00 - $12.00
Fabless provider of flash memory chips for Internet of Things devices.
Sole Elite Group
$10.00 - $12.00
Chinese athletic shoe sole manufacturer.
$10.00 - $12.00
Developer and manufacturer of temporary implantable artificial hearts.
$6.00 - $7.00
Maxim Group LLC
Developing a novel adjunct therapy for major depressive disorder.
$5.00 - $5.00
Chinese producer of disposable plastic cutlery and other food service products.
$5.75 - $7.75
Developing formulations of widely-used cancer drugs for humans and dogs.
IPO ETF manager Renaissance Capital
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.
Start your engines: Ferrari sets terms for $859 million IPO
) set terms to raise $859 million in an IPO that would value the company at $9.4 billion, almost half of the market cap of parent Fiat Chrysler. Ferrari has been one of the most anticipated IPOs of the year. Another large offering, Multi Packaging Solutions International (
), is on the calendar to raise $300 million. It was LBO'd by The Carlyle Group and Madison Dearborn. Both IPOs are scheduled for the week of October 19.
IPO pipeline update: Filing activity hits a 4-month high as 11 companies join pipeline
The IPO market is gearing up for an active fourth quarter, as 11 diverse companies submitted initial public filings in the past week - the most active week since June. The flurry of activity was supported by the VIX volatility index ending the week at about 17, its lowest level since the mid-August spike. While markets have stabilized, the fact that most IPOs still trade below the offer price will continue to weigh on investors' minds in determining valuations. Financial data provider IDC (
) joined the backlog of large LBOs in the pipeline, filing for an IPO that could raise $700 million. Other filings in the financial sector include online mortgage provider loanDepot (
), Nordic Realty Trust (
) and Missouri-based Equity Bancshares (
). The tech sector saw Instructure (
) and Xtera Communications (
) submit filings. Well-funded biotechs Wave Life Sciences (
) and Voyager Therapeutics (
) both filed for $80+ million IPOs.
IPO Market Snapshot
Strong IPO volume in the fourth quarter will in part hinge on improved returns for recent IPOs. The Renaissance IPO Index has traded down 6.9% year-to-date, compared to -2.1% for the S&P 500. Renaissance Capital's
(NYSE: IPO) tracks the index, and
top ETF holdings
include Alibaba (
), Hilton Worldwide (
) and Twitter (
). The Renaissance International IPO Index has traded down 1% year-to-date, compared to -2.7% for the ACWX. Renaissance Capital’s International
(NYSE: IPOS) tracks the index, and
top ETF Holdings
include Recruit Holdings and Cheil Industries.
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.