It was a light week for pricings as we gear up for the much anticipated group of companies slated to IPO starting next week.
The one IPO of the week, Trine Acquisition (TRNE.U), a media and communications SPAC led by Leo Hindery raised $261 milllion in an upsized IPO on Thursday. That brings this year's total to 13 SPACs, which have raised $2.9 billion, compared to 14 other IPOs raising $1.4 billion. While 2019 IPO proceeds are down -88% from this point last year, 2019 SPACs have raised nearly 50% more than the YTD-2018 group, and 2018 was a 10-year record for SPACs.
Despite there only being one IPO, there were a number of filings this week.
On Tuesday we saw Jumia Technologies (JMIA), which is an African e-commerce platform backed by MTN and Rocket Internet that hopes to capitalize on economic growth in Africa and the massive potential of the untapped e-commerce, payments, and logistics market.
On Friday, there were three filings, including PagerDuty (PD), which is backed by Andressen Horowitz and provides a SaaS-based operations management platform for IT teams, Change Healthcare (CHNG), which provides healthcare revenue and payment cycle management software, and Palomar Holdings (PLMR), a specialty property insurance provider backed by Genstar Capital.
Keeping with the theme of the year two SPACs, B. Reilly Principal Merger (BRPM.U) and Replay Acquisition (RPLA.U) also filed this week.
Also notable this week given the excitement surrounding the anticipated IPOs of ridesharing giants Lyft (LYFT) and Uber, it was announced that SoftBank and Toyota are in late-stage stalks to invest $1 billion or more in Uber's self-driving unit, which would help the company make its pitch to investors ahead of its IPO.
| 1 IPO During the Week of March 11th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 03/15 |
| Trine Acquisition (TRNE.U) | $261M | $324M | 0% | +0% | +0% |
| SPAC led by Leo Hindery targeting the media and communications industries. | |||||
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IPO Market Snapshot
| 6 Filings During the Week of March 11th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Change Healthcare (CHNG) | $100M | Technology | Barclays |
| Provides healthcare revenue and payment cycle management software. | |||
| PagerDuty (PD) | $100M | Technology | Morgan Stanley |
| Provides a SaaS-based operations management platform for IT teams. | |||
| Palomar Holdings (PLMR) | $50M | Financials | Barclays |
| Specialty property insurance provider backed by Genstar Capital. | |||
| Replay Acquisition (RPLA.U) | $250M | SPAC | Credit Suisse |
| Blank check company formed to acquire a business in Argentina or Brazil. | |||
| B. Riley Principal Merger (BRPM.U) | $125M | SPAC | B. Riley FBR |
| SPAC backed by diversified financial services firm B. Riley Financial. | |||
| Jumia (JMIA) | $500M | Technology | Morgan Stanley |
| African e-commerce platform backed by MTN and Rocket Internet. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/14/19, the Renaissance IPO Index was up 30.6% year-to-date, while the S&P 500 had a gain of 12.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (VICI) and Spotify (SPOT). The Renaissance International IPO Index was up 8.8% year-to-date, while the ACWX was up 9.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.
