Three energy-related IPOs plan to raise about $750 million in the week ahead. Two have direct exposure to oil prices, including Extraction Oil & Gas, which plans to raise $550 million as the first E&P to go public in over two years. An oilfield services company and an India-based solar power producer round out the group.
| Renaissance Capital's IPO Calendar - Week of 10/10/2016 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Lead Managers |
| Extraction Oil & Gas Denver, CO |
XOG Nasdaq |
$550 | $15.00 - $18.00 33,333,332 |
Credit Suisse Barclays |
| Oil and gas E&P operating in the Denver-Julesburg Basin. | ||||
| Avista Healthcare Acquisition New York, NY |
AHPAU Nasdaq |
$300 | $10.00 - $10.00 30,000,000 |
Credit Suisse |
| Blank check company formed by Avista to acquire a health care company. | ||||
| Mammoth Energy Services Oklahoma City, OK |
TUSK Nasdaq |
$128 | $15.00 - $18.00 7,750,000 |
Credit Suisse Barclays |
| Provides oilfield services in the Utica Shale and Permian Basin. | ||||
| Azure Power Global Madangir, NeIndia |
AZRE NYSE |
$75 | $21.00 - $23.00 3,409,091 |
Barclays Credit Suisse |
| Indian low-cost solar power producer with 357 MW of capacity. | ||||
| Full Spectrum Sunnyvale, CA |
FMAX Nasdaq |
$15 | $7.00 - $9.00 1,875,000 |
Joseph Gunnar & Co. |
| Develops and sells products used to create private cellular networks. | ||||
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An exploration and production company finally explores the IPO market
Extraction Oil & Gas (XOG) plans to raise $550 million at a market cap of $2.6 billion. Set to be the first E&P to go public in the US in over two years, Extraction has rapidly increased production in Colorado's Denver-Julesburg Basin, and plans to continue to invest heavily in the area. Noble Midstream Partners LP (NBLX), which operates in the same basin, became the year's first energy IPO last month and has traded up 23% from the offer price.
A Mammoth energy IPO
Mammoth Energy Services (TUSK), which offers a suite of oilfield services, plans to raise $128 million. Like Extraction, Mammoth's success is tied to rising energy prices. The company saw revenue decline over 50% in the first half of the year as top customer and related party Gulfport cut back on production, though most oilfield services peers have rebounded in the past three months.
Indian solar power company hopes for blue skies in New York
Azure Power Global (AZRE) offers a play on India's increasing use of solar power, driven by government initiatives, though potential concerns include debt and pricing pressure. Azure operates 24 utility scale projects and plans to bid on, build and acquire new projects. It had planned to raise $150 million, but lowered its deal size to $75 million when Canadian pension fund CDPQ stepped in to invest $75 million.
While we do not count SPACs in our IPO stats, Avista Capital Partners plans to raise $300 million for its healthcare-focused blank check company, Avista Healthcare Public Acquisition (AHPAU). Micro-cap Full Spectrum (FMAX) could also price its $15 million IPO this week, though a date has not been determined.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up almost 1% year-to-date compared to the S&P 500's +5%, though the IPO Index outperforms over the past 3 months. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 1% year-to-date, compared to +4% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Recruit Holdings and Cheil Industries. To find out if this is the best ETF for you, visit our IPO Investing page.
