The three notable deals on the IPO calendar are all PE-backed: women’s apparel retailer J.Jill (JILL), information technology reseller Presidio (PSDO) and high-end parka maker Canada Goose (GOOS).
Eight PE-backed deals have raised a total of $4.1 billion this year, most from Energy and Industrials sectors. This year is outpacing 2016 when 30 deals raised $8.8 billion, with no PE-backed deals in the 1Q16. This 2016 cohort has returned an average of 39%, with 25 enjoying positive returns.
All three were purchased by private equity firms fairly recently (approx. 2-3 years ago) and these backers are seeking to cash out at least $100 million of their investment, each receiving more than half of the proceeds from the deals.
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Following SNAP's successful IPO, tech unicorn MuleSoft (MULE) and Alteryx (AYX) are expected to launch deals soon. Several filers from the 4Q16 are also likely to launch deals in the coming weeks including global container manufacturer Ardagh (ARD), US trucker Schneider National (SNDR) and plastic film producer Klöckner Pentaplast (KP). Three frackers, FTS International (FTSI), Liberty Oilfield Services (BDFC) and ProPetro (PUMP) are all eligible to launch after filing in February.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 9.7% year-to-date, while the S&P 500 is up 6.4%. 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 up 4.8% year-to-date, while the ACWX is up 6.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Aena and ABN Amro. To find out if this is the best ETF for you, visit our IPO Investing page.
