The first IPOs of 2017 are on the calendar. AppDynamics set terms this past week, becoming the first tech unicorn to launch in 2017.
| IPO Launches Week of January 9 | ||||||
| Issuer Business |
Symbol |
Deal Size($m) Market Cap($m) |
Pricing Date |
|||
| Keane Group Houston, TX |
FRAC | $301 $1,851 |
Thu 1/19 |
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| Provides hydraulic fracturing well completion services for the oil and gas industry. |
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| AppDynamics San Francisco, CA |
APPD | $132 $1,747 |
Wed 1/25 |
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| Provides application performance management software for business-critical apps. |
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Two launches, the first IPOs of 2017
AppDynamics (APPD), which provides application performance management software for business-critical apps, set terms for a $132 million IPO (7.5% of the diluted market cap). It is set to be the first unicorn to IPO in 2017, breaking the ice for a massive backlog of VC-backed tech companies. AppDynamics competes closely with New Relic (NEWR) which went public in 2014 and currently trades 39% above the offer price.
Keane Group (FRAC), a Cerberus-backed oil well completions company, set terms for a $301 million IPO and plans to offer 16.7 million shares (8% insider) at a price range of $17 to $19. Read more in our week ahead.
SPAC Prices
Gores Holdings II (GSHTU), the second blank check company by The Gores Group, priced its $375 million IPO at $10 per share and traded up 2.5% on Friday. With its first SPAC (TWNK), the team acquired Hostess for roughly $725 million in July 2016.
The IPO pipeline
No new filings this past week, but returns support an open IPO market. The Renaissance IPO Index has surged 3.9% year to date, while the S&P 500 posted a 1.6% gain. We expect that many companies in the pipeline will launch after year-end earnings come out. Recent IPOs have fared well, with those pricing in the last 90 days returning an average of 16% and 65% trading above their offer price. Six companies filed amendments this past week including metallurgical coal producer Ramaco Resources (METC) choosing underwriters, specialty vehicle manufacturer REV Group (REVG) updating debt numbers and for-profit education company Laureate Education (LAUR) announcing preliminary 2016 financials.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the Renaissance IPO Index, and top ETF holdings include First Data (FDC) and TransUnion (TRU). The Renaissance International IPO Index is up 2.1% year-to-date, while the ACWX is up 3.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Aena and ABN Amro.
