Coming off of a strong previous week, worldwide IPO performance took a step backward this week as global markets continued to feel the wrath of the European Debt Crisis. While Greek bailout talks carry on, investors remain cautious to commit to global equities. The FTSE Renaissance Global IPO Index closed the week down 2.8% but managed to out-perform global benchmarks (MSCI All Country World Index; -3.3%). Although the Global IPO Index had a negative week, the index has gained 11.9% thus far this quarter (MSCI ACWI: 9.5%).
After months of deliberation and scrutiny from the media, Groupon's (GRPN) long awaited initial public offering finally arrived on Friday . Groupon's shares started the day by hitting a high of $30 but soon after retreated and closed at $26.11. Despite all of the criticism and skepticism that surrounded the company, there is little doubt that Groupon was a day one winner, providing IPO investors with a 30.5% return on its offer price. The daily deal juggernaut's $700 million deal size and $13.3 billion market cap make it the second largest US Internet company to go public since Google's $1.7 billion IPO in August 2004 at a $25 billion market cap. While Groupon's IPO has officially listed, the deal is viewed as a significant icebreaker in an IPO market that had been shut down for two months since mid-August.
Also debuting in the US this week were yield plays Enduro Resource Partners (NDRO) and Rentech Nitrogen Partners (RNF). Enduro Royalty Trust, a trust formed by the founders of Encore Acquisitions to own royalty interests in producing and developmental wells in the Permian Basin, raised $290 million on Wednesday by offering 13.2 million trust units at $22. Enduro Royalty Trust ended the week down 3.86% from its IPO price. Renetch Nitrogen Partners L.P., a spin-off of leveraged clean energy firm Rentech's nitrogen fertilizer business, priced its 15 million share IPO at $20. Rentech Nitrogen listed on the NYSE on Friday and closed its first day of trading down -0.75%.
The IPO calendar is beginning to fill up as the IPO market prepares for life after Groupon. As the media will likely continue to follow this week's blockbuster deal in the immediate-term, be aware that there are three deals expected to price next week. Founded by one of the co-founders of Israel's Checkpoint, Imperva (IMPV), which offers data security used to protect files in data centers and cloud computing environments plans to raise $75 million by offering 5 million shares at a price range of $14.00 to $16.00. NewLink Genetics Corporation (NLNK), a biotech firm developing a Phase 3 drug for surgically-resected pancreatic cancer patients, plans to raise $61 million by offering 5.5 million shares at a price range of $10.00 to $12.00. Major US natural gas and oil driller Chesapeake Energy (CHK) officially launched the IPO for Chesapeake Granite Wash Trust (CHKR) on Wednesday and plans to raise $468 million by offering 23.4 million high yield interestes at a price range of $19 to $21.
Other noteworthy companies, including Angie's List (ANGI) and Zynga (ZYNG), are also expected to go public this month. To stay up to date on upcoming initial public offerings, be sure to stay tuned to our IPO calendar as more additions are sure to follow.
Note: All return data is accurate as of 4PM EST on November 4th, 2011.
