This week saw four companies file for IPOs including family-owned trucker Schneider National (SNDR), packaging film manufacturer Klöckner Pentaplast (KP), E&P Jagged Peak Energy (JAG), and SPAC FinTech Acquisition II (FNTEU). There were no pricings this week and there is nothing on the calendar for the remainder of the year.
Schneider National (SNDR), a leading US trucking company, filed for an IPO this week. Though it filed with a $100 million deal size, we estimate the deal could raise as much as $1 billion. The Schneider family has owned the company since it was founded in 1935. In the nine months ended September 30, 2016, Schneider had $3.0 billion in sales (+1% YOY) and saw operating income increase 16% to $202 million (7% margin).
Klöckner Pentaplast (KP), a global manufacturer of plastic films, filed for an estimated $300 million IPO on Thursday. The company has changed hands several times in the past, most recently when Strategic Value Partners took control from Blackstone in a 2012 restructuring that wiped out Blackstone’s $127 million in equity. Klöckner has seen revenue decline to $1.4 billion (-5% YOY) and has a large debt burden of $1.2 billion (4.8x LTM adjusted EBITDA), but hopes its leading position in stable growing markets will tempt investors. The company filed under the name Kleopatra Holdings 2.
Jagged Peak Energy (JAG), an oil and gas E&P operating in the Delaware Basin, filed for an IPO we estimate could raise $300 million. The company is backed by Quantum Energy Partners, which formed Jagged Peak Energy in 2013 with $400 million. The company was reported to be exploring a private sale at a $2 billion valuation in August. The Denver, CO-based firm is pitching its ramping production (+161% in the 9mo16) from its 60,875 net acres and hopes to benefit from higher commodity prices. Jagged Peak filed confidentially in October.
The IPO pipeline
In addition to the four filings, there was also one withdrawal and five updates as companies prepare for what should be a more active 2017. Pickup truck accessory company Truck Hero (TRUK) withdrew its IPO filing from October 2015. CBS Radio (CBSR) amended its filing to show that President Andre Fernandez added the title of CEO. Yangtze River Development (YERR), a port logistics terminal operator, amended its filing to disclose clarified terms regarding a recent share issuance. REV Group (REVG), a specialty vehicle manufacturer, filed updated financials and announced it plans to list on the NYSE. Biotech Visterra (VIST) updated progress on its trials as it prepares to raise more funds for its targeted influenza vaccines. Micro-cap REIT Sachem Capital (SACH) filed updated financials and announced it would change exchanges to NYSE MKT from Nasdaq.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is flat year-to-date, while the S&P 500 is up almost 11%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include First Data (FDC) and TransUnion (TRU). The Renaissance International IPO Index is down 7% year-to-date, while the ACWX is up 1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Aena and ABN Amro.
