After a week without any IPOs, two upcoming deals - a biotech and an adtech - are set to kick off what could be a busy March in the IPO market.
• 2 US IPOs on the IPO calendar
• 2015 IPO activity remains below 2014 but above 2013
• The IPO pipeline contains several notable names to watch out for
Voters in our IPO poll haven't shown confidence in these upcoming deals.
| Renaissance Capital's IPO Calendar - Week of March 2, 2015 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Top 2 bookrunners |
| MaxPoint Interactive Morrisville, NC |
MXPT NYSE |
$75 | $10.50 - $12.50 6,500,000 |
Goldman Sachs Deutsche Bank |
| Marketing automation platform that runs targeted digital ads to drive in-store sales. | ||||
| Summit Therapeutics Abingdon, United Kingdom |
SMMT NASDAQ |
$40 | $11.54 3,450,000 |
JMP Securities Oppenheimer |
| Developing novel therapies for muscular dystrophy and bacterial infections. | ||||
Summit hopes to climb higher in a US listing
Summit Therapeutics (SMMT), which currently trades in London on the AIM under the ticker SUMM, is developing treatments for Duchenne Muscular Dystrophy (DMD) and Clostridium difficile infection. The company claims that its drug candidate targets three times the number of DMD patients compared to competitors' treatments. Summit benefits from BioMarin's recent $840 million acquisition of close peer Prosensa (RNA).
Can the latest adtech sell its story to IPO investors?
MaxPoint Interactive (MXPT) is set to be the third technology IPO of the year after Box (BOX; +33%) and Inovalon (INOV; +15%). MaxPoint's cloud-based platform enables companies to run hyper-local digital ads that target areas that are more likely to drive in-store purchases. Adtech IPOs have been a mixed bag for investors. Last year's TubeMogul (TUBE) and The Rubicon Project (RUBI) trade above their offer price, but four more from 2013 blew up.
| Recent adtech IPOs | |||||
| Company (Ticker) | Offer Date | Deal Size ($mm) | IPO Price vs. Midpoint | First-Day Pop | Return as of 2/27 |
| TubeMogul (TUBE) |
07/17/14 | $44 | -42% | 64% | 97% |
| Criteo (CRTO) |
10/29/13 | $251 | 27% | 14% | 46% |
| The Rubicon Project (RUBI) | 04/01/14 | $102 | -6% | 34% | 26% |
| YuMe (YUME) | 08/06/13 | $46 | -31% | 0% | -38% |
| Marin Software (MRIN) | 03/21/13 | $105 | 17% | 16% | -53% |
| Rocket Fuel (FUEL) |
09/19/13 | $116 | 14% | 93% | -66% |
| Tremor Video (TRMR) | 06/26/13 | $75 | -17% | -15% | -76% |
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IPO pipeline update
There have been 35% fewer IPOs than last year and initial filings are down by nearly half. However, filing activity should pick up in March as broader markets are near record-highs. The amount of private funding has built a large backlog of pre-IPO companies that don't need IPO cash, but their backers will want an exit before it becomes more difficult to do so.
Tallgrass Energy GP LP (TEGP) filed for an $863 million IPO last week. It is the second 2015 IPO filer with GP interests after EQT GP Holdings LP (EQGP). Tallgrass could see interest based on the performance of the underlying MLP (TEP), which has gained over 125% since its May 2013 IPO, not including dividends. Just 2% of global textile printing is done by digital printing systems, but new IPO filer Kornit Digital (KRNT) hopes to supply machines and ink as more garment producers make the switch.
Several IPO candidates now appear ready to launch, including GoDaddy (GDDY), Valeritas (VLRX), Black Knight Financial Services (BKFS), HTG Molecular (HTGM), Summit Materials (SUM), PES Logistics (PESL), Virtu (VIRT).
IPO market snapshot
The Renaissance IPO Index, a market cap weighted basket of newly public companies that is designed to represent the US IPO market, has traded up nearly 6% year-to-date, close to its all-time high. This suggests that, despite a lack of demand for recent IPOs, the window to go public is still open. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Twitter (TWTR), Zoetis (ZTS), Alibaba (BABA), Hilton (HLT) and Ally Financial (ALLY). To find more about purchasing shares of the ETF from your broker, visit our new IPO investing page.
