No companies went public during the final week of March, ending the IPO market's slowest quarter since 2009.
Micro-cap systems maker Sensus Healthcare (SRTSU) postponed a $20 million IPO at a proposed $97 million market cap. However, some billion-dollar IPO news hit this week with the initial filing of AIG spinoff United Guaranty (UGCO.RC), while large LBOs US Foods (USFD; est. $1 billion deal size) and McGraw-Hill Education (MHED; est. $500 million) both updated financials.
IPO conditions improved further, as the Renaissance IPO Index traded up again this week (+3.4% vs. S&P's 1.8%). The Index is now up 22% from its February low, compared to +13% for the S&P. Additionally, the VIX Volatility Index reached a new low for the year, ending the week near 13. We now await the IPO Icebreakers; news recently broke that both Bats Global Markets (BATS) and SecureWorks (BATS) are targeting April offerings.
Read our 1Q16 US IPO Review: Find out what forces shaped the IPO market and what to expect in Q2.
Aside from the large filers we noted above, Global Medical REIT (GMR), a health care REIT with $7 million in sales, filed for a $100 million IPO. Early-stage biotech Aeglea BioTherapeutics (AGLE) set terms for a $60 million IPO in the week ahead. Payment processor TransFirst, which was acquired in January for $2.35 billion, withdrew its filing.
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 Synchrony Financial (SYF), Alibaba (BABA) and Citizens Financial Group (CFG). 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 NN Group and Recruit Holdings. Read our IPO investing page to find out if this is the best ETF for you.
