Just one deal priced this past week due to the Easter holiday, but a flurry of nine companies joined the IPO calendar to price in the upcoming weeks. Renaissance Capital's US IPO Index had one of its best weeks this year, gaining +2.6%, compared to the S&P 500's +0.8%.
Flat WTTR: Oilfield services provider prices down and gains 0.1%
Select Energy Services (WTTR) raised $122 million - 30% less than expected - by offering fewer shares at $14, below the $15-18 range. It opened up 6% on Friday but finished the day with a mere 0.1% return. Backed by Crestview Partners, Select provides comprehensive water services for well fracking, the only public company solely focused on this area. While it is valued at a discount to public oilfield services companies, including 2017 IPOs ProPetro (PUMP) and Keane (FRAC), Select Energy Services showed that IPO investors remain selective over the energy sector, given the uncertainty of a sustained recovery in fracking.
| IPO Pricings Week of April 17th, 2017 | |||||
| Issuer Business |
Deal Size ($mm) |
Market Cap at IPO ($mm) |
Price vs. midpoint |
First day return |
Return at 4/21 |
| Select Energy Services (WTTR) |
$122 | $943 | -15% | +0.1% | +0.1% |
| Provides comprehensive water services for hydraulic fracturing. |
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US IPO Pipeline Update
Two foreign companies filed for US IPOs this past week. Bright Scholar Education (BSEH.RC), China's largest operator of international and bilingual schools, filed to raise $200 million. In 2016, the company grew sales by 39% to $152 million (18% EBITDA margin). Dutch biotech argenx (ARGX), currently listed on the Euronext Brussels, filed to raise $75 million on the Nasdaq. Indicating potential launches on the horizon, updated filings came in from Antero Midstream GP LP (AMGP), Solaris Oilfield Infrastructure (SOI) and Intrepid Aviation (INTR).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 12.0% year-to-date, more than double the S&P 500's 4.9%. 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 9.6% year-to-date, while the ACWX is up 8.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Covestro and Worldpay. To find out if this is the best ETF for you, visit our IPO Investing page.
