Two IPOs diverged in trading this week. Alteryx was fairly well-received by investors, popping 11% on its first day of trading Friday. Valeritas, which had failed to IPO in 2015, broke issue despite insiders purchasing 67% of the deal. The average 2017 IPO is up 12% and 64% are trading above their IPO price.
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| 2 IPOs Priced During the Week of March 20, 2017 | |||||
| Issuer Business |
Deal Size ($mm) |
IPO Market Cap ($mm) |
Price vs. midpoint |
First day return |
Return at 3/24 |
| Alteryx |
$126 | $847 | +8% | +11% | +11% |
| Provides a self-service data preparation and analytics software platform. |
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| Valeritas | $53 | $96 | 0% | -29% | -33% |
| Markets a disposable device that delivers insulin therapy for Type 2 diabetes. |
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Alteryx (AYX), which provides an easy-to-use data analytics platform, raised $126 million at the high end of the range. Investors may have been enticed by the accelerating, high growth of 62% in the 4Q16, but had their optimism held back by the increasing competition Alteryx faces. Many tech companies in the pipeline have their eyes on Alteryx, such as Yext (YEXT) and Okta (OKTA), as they time their own offerings.
Valeritas (VLRX), an insulin pump alternative manufacturer, raised $53 million in a downsized deal, before tumbling -29%. Only one deal has had a worst first day since 2007. In the last four years, of the 16 IPOs that finished down 20% or more on their first day, only one currently trades above issue and only two trade above their first day close.
Record SPAC Raise
Silver Run Acquisition II (SRUNU), a blank check company formed by Riverstone to acquire an energy business, raised $900 million on Thursday. This ties 2007 IPO Liberty Acquisition (LIA-U) for the largest-ever raise by a SPAC.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 9.4% year-to-date, while the S&P 500 is up 4.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (RACE) and TransUnion (TRU). The Renaissance International IPO Index is up 9.2% year-to-date, while the ACWX is up 8.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Covestro and ABN Amro. To find out if this is the best ETF for you, visit our IPO Investing page.
