•Another small-cap biotech is set to kick off Q2 pricings
•Timing of the IPO window reopening is still uncertain, but the pipeline remains robust
First IPO of the second quarter
Aeglea Biotherapeutics (AGLE), which is developing enzymes for rare genetic metabolic diseases and tumors, is planning to price its $60 million IPO the week of April 4th; insiders intend to purchase up to $30 million on the IPO.
| Renaissance Capital's IPO Calendar - Week of 4/4/2016 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Top 2 bookrunners |
| Aeglea BioTherapeutics Austin, TX |
AGLE Nasdaq |
$60 | $16 - $18 3,500,000 |
UBS Investment Bank BMO Capital Markets |
| Developing enzymes for rare genetic metabolic diseases and tumors. | ||||
Reopening of IPO window remains uncertain
While the timeline for deals to come to market remains unclear, the IPO pipeline is full of a diverse group of large, mature businesses that may debut in the 2Q. There have been 51 company updates or initial filings this year, of which 29 came after the S&P bottomed on February 11 (+13% since). Of these, there are 20 health care companies which are predominantly small-cap biotechs (15 companies).
The table below breaks out the entire pipeline by sector:
| IPO Pipeline - Updated or Filed in 2016 | ||||||
| Sector | Total Proceeds ($mm) |
% of Total Proceeds | Number of Deals | % of Total Deals |
||
| Health Care | $2,154 | 17% | 20 | 40% | ||
| Financial |
$2,701 | 22% | 8 | 16% | ||
| Technology | $684 | 5% | 6 | 12% | ||
| Capital Goods & Services | $1,325 | 11% | 5 | 10% | ||
| Consumer | $3,552 | 28% | 4 | 8% | ||
| Business Services |
$800 | 6% | 2 | 4% | ||
| Communications |
$1,000 | 8% | 1 | 2% | ||
| Transportation |
$150 | 1% | 1 | 2% | ||
| Energy |
$100 | 1% | 1 | 2% | ||
| Materials |
$14 | 0% | 1 | 2% | ||
| Utilities |
$6 | 0% | 1 | 2% | ||
| Total |
$12,386 | 50 | ||||
The table below breaks out the largest deals in the pipeline:
| Highlighted Deals | |||||
| Company |
Symbol |
Industry | Deal Size ($mm)* |
||
| Albertsons Companies |
ABS | Consumer | $1,600 | ||
| Univision |
UVN | Communications | $1,000 | ||
| US Foods Holdings | USFD | Consumer | $1,000 | ||
| United Guaranty | --- | Financial | $1,000 | ||
| MGM Growth Properties LLC | MGP | Financial | $1,000 | ||
| Patheon |
PTHN | Health Care | $700 | ||
| McGraw-Hill Education |
MHED | Business Services | $500 | ||
| PSAV |
PSAV | Business Services | $300 | ||
| Bats Global Markets |
BATS | Financial | $300 | ||
| SecureWorks |
SCWX | Technology | $300 | ||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 7% year-to-date, compared to +1% for the S&P 500. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA), Citizens Financial Group (CFG) and Hilton Worldwide (HLT). The Renaissance International IPO Index is down 4% year-to-date, compared to -1% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include Recruit Holdings and Samsung C+T. To find out if this is the best ETF for you, visit our IPO Investing page.
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