Bats Global Markets could be the IPO icebreaker we have been waiting for
Formed as a low-cost "Better Alternative Trading System," Bats Global Markets (BATS) will once again attempt to go public on its own BZX exchange, four years after it priced and cancelled its IPO due to a trading glitch. Since then, it has nearly doubled its revenue ($1.8 billion in 2015) through strategic acquisitions and market share gains (#2 in US equities and #1 in European equities). It also hired a new CEO in December 2014, "Bats Man" Chris Concannon, former COO of Virtu Financial (VIRT). If Bats prices at the $18 midpoint, its $202 million offering would be the year's 10th and largest IPO, and the first with positive operating income.
| Renaissance Capital's IPO Calendar - Week of 4/11/2016 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Top 2 bookrunners |
| Bats Global Markets Lenexa, KS |
BATS BZX |
$202 | $17 - $19 11,200,000 |
Morgan Stanley Citi |
| Operates equities and options exchanges in the US and Europe. | ||||
Two more profitable companies launch IPOs: On the calendar for the week of April 18
Las Vegas REIT MGM Growth Properties LLC (MGP), a spinoff of MGM International with a portfolio of 10 casinos including Mandalay Bay and The Mirage, is scheduled to raise $975 million at a market cap of $4.1 billion ($7.2 billion enterprise value). LBO'd by Centerbridge in 2010, American Renal Associates (ARA) operates 192 kidney dialysis centers as joint ventures with physicians; it is targeting a $161 million IPO.
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 8% year-to-date, while the S&P 500 is flat. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 4% 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 Aena S.A.
To find out if this is the best ETF for you, visit our IPO Investing page.
