- In a week shortened by Good Friday, there was one biotech pricing and one initial filing.
- The first quarter, marked by the least amount of IPO activity since the 1Q 2009, comes to a conclusion next week. Quarter to date, there have been 8 IPOs, all health care, that have raised $667 million.
- MGM Growth Properties became the first significant IPO filer in 20 days; Bats Global Markets and others hint at launching April IPOs.
One biotech IPO priced this week; one remains on the calendar
Backed by a well-regarded management team, checkpoint inhibitor developer Corvus Pharmaceuticals (CRVS) raised $71 million. Insiders OrbiMed, Novo, Adams Street and Fidelity, who recently invested privately, purchased $34 million on the offering (48% of shares). Despite the insiders' support, Corvus fell 5% on its debut. Every IPO in 2016 has been supported by insider buying.
Micro-cap systems maker Sensus Healthcare (SRTSU) is still lingering on the calender, set to price its $20 million offering the week of March 28.
| One healthcare IPO during the week of March 21, 2016 | |||||
| Company (Ticker) | Business | Deal size ($mm) | IPO price vs. midpoint | 1st-day pop | Return at 3/24 |
| Corvus Pharmaceuticals (CRVS) |
Checkpoint inhibitors for solid tumors | $71 | -6.3% | -5% | -5% |
IPO Pipeline update
MGM Growth Properties LLC (MGP), an MGM Resorts (NYSE:MGM) created REIT with an initial portfolio of 10 gaming properties, filed on Tuesday for an IPO that we estimate could raise $1 billion. Notable pipeline company SecureWorks (SCWX), a managed security services provider being spun out of Dell, updated financials for fiscal 2016; while it reported dramatically widening losses, revenue growth accelerated to 29.5% from 27.4% and billings growth remained strong at 26%. Securities exchange operator Bats Global Markets (BATS), which updated financials earlier this month, is reportedly seeking to complete its IPO in April.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 10% year-to-date, compared to -0.4% for the S&P 500. The IPO index is 19% above its February low, compared to the S&P's 11% bounce. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Synchrony Financial (SYF), Alibaba (BABA) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 5% year-to-date, compared to -2% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include NN Group and Recruit Holdings. Find out why institutional investors rely on Renaissance Capital's Pre-IPO Research for these IPOs.
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