No US IPOs priced this past week, but there was still plenty of activity. Five companies were added to the US IPO calendar and seven others joined the US IPO pipeline with initial filings, including tech unicorn Cloudera and low-cost carrier Frontier Airlines.
Second quarter starts off swinging
Five deals launched this past week, and the US calendar now has five $100+ million deals set for the week ahead. These include high-growth tech unicorn Okta (OKTA), high-yielding MLP Hess Midstream (HESM), Brazilian airline Azul (AZUL), US trucker Schneider (SNR) and non-prime lender Elevate Credit (ELVT). The tech sector is opening up, with two more high-growth names scheduled for the following week: Brazilian online retailer Netshoes (NETS) and digital presence optimizer Yext
(YEXT).
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What just happened? Find out from Renaissance Capital's IPO Reviews
This past week closed out the first quarter, which saw 25 IPOs raise $10 billion. Read our 1Q 2017 US IPO Market Review to discover how IPOs performed, emerging trends and which IPOs to look for in the 2Q17. We have also published a peek at our Global IPO Review.
US IPO Pipeline Update: 7 large diverse new filers led by Cloudera and Frontier
Cloudera (CLDR) filed to raise $200 million; backed by Intel, Accel, Greylock and others, the "big data" software company has both rapid growth (+57% to $261mm) and massive losses (-68% EBITDA).
Set to follow Azul, Frontier Airlines (FRNT) filed this past week for a US IPO that we estimate could raise $700 million, coming off a year with EBITDAR growth of 26% ($641 million).
Carvana (CVNA), which sells used cars online, filed to raise $100 million; it booked $365 million in sales during 2016, up 180%, but remained highly unprofitable (-23% EBITDA margin).
Emerald Expositions Events (EEX) filed for an estimated $300 million offering. Bought by Onex in 2013, it is the largest US operator of business-to-business trade shows and exhibitions.
China Rapid Finance (XRF) filed to raise $100 million; it was reportedly valued at $1 billion in 2015 (when it filed confidentially), but revenue has been flat at about $56 million over the past three years despite loan volume tripling to $1 billion.
Antero Midstream GP LP (AMGP) filed for an IPO we estimate could raise $500 million; the yield play owns GP interests in oil and gas pipeline MLP Antero Midstream (AM), a 2014 IPO.
Spun out of Ionis Pharmaceuticals (Nasdaq: IONS), biotech Akcea Therapeutics (AKCA) filed to raise $100 million as the late-stage biotech targets rare lipid disorders.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 11.8% year-to-date, while the S&P 500 is up 5.5%. 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 8.0% 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. To find out if this is the best ETF for you, visit our IPO Investing page.
