The final week of August 2017 finished with no IPOs. The month's five offerings raised $777 million, making it the slowest August in six years. The week was headlined by Roku's initial filing, along with filings from four biotechs, two Chinese education companies, a surgical robotics company and a marketplace for motorcycles; three companies updated their filings, growing the active pipeline to 41 companies.
Year-to-date performance for 2017 IPOs rallied to 17%, up from 11% a week ago (and 8% as of 8/18). After turning positive last week, average aftermarket returns increased to 6%. The recent strong returns have largely been driven by biotech outperformance over the past two weeks. 66% of the 92 IPOs this year are currently trading above issue price.
This week, we released our Fall 2017 US IPO Preview, following the release of our Non-US IPO Preview last week. We also put out a pre-IPO report on Social Capital Hedosophia Holdings (IPOA.U), a VC-managed SPAC planning to acquire a large private tech company.
| 9 Filings During the Week of August 28, 2017 | |||
| Issuer Business |
Deal Size ($mm) |
Sector | Lead Underwriter |
| NuCana (NCNA) | $115 | Health Care | Citi |
| UK biotech developing enhanced chemotherapies for resistant tumors. |
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| Roku (ROKU) | $100 | Technology | Morgan Stanley |
| Provides streaming media set-top boxes with over 600 channels. |
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| Deciphera Pharmaceuticals (DCPH) | $100 | Health Care | J.P. Morgan |
| Clinical-stage developer of kinase-inhibiting cancer drugs. |
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| RYB Education (RYB) | $100 | Consmr Discr | Credit Suisse |
| Leading provider of early childhood education services in China. |
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| Nightstar Therapeutics (NITE) |
$86 | Health Care | Jefferies |
| UK biotech developing gene therapies for rare retinal diseases. |
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| Sol-Gel Technologies (SLGL) |
$86 | Health Care | Jefferies |
| Developing topical acne creams that deliver treatment via microcapsules. |
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| Restoration Robotics (HAIR) | $29 | Health Care | National Securities |
| Selling robotic devices to assist doctors with hair restoration surgery. |
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| RumbleOn (RMBL) | $25 | Technology | Roth Capital |
| Operates an early-stage online marketplace for motorcycles. |
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| Ambow Education Holding (AMBO) |
$5 | Consmr Discr |
TBA |
| Provides education, test prep and IT career training services in China. |
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IPO Pipeline Update: 9 filings expand the active pipeline
The active pipeline grew to 41 companies this week with nine initial filings. Long-anticipated Roku (ROKU), which provides streaming media set-top boxes, filed to raise $100 million. NuCana (NCNA), a UK-based cancer biotech, filed to raise $115 million. Another cancer-focused biotech, Deciphera Pharmacueticals (DCPH), filed to raise $100 million. Nightstar Therapeutics (NITE), a UK-based biotech developing gene therapies for rare retinal diseases, filed to raise $86 million. Israeli acne cream developer Sol-Gel Technologies (SLGL) also filed to raise $86 million. 2010 IPO Ambow Education Holding (AMBO), a Chinese education and IT career training company that was delisted in 2014, filed to raise $5 million. RYB Education (RYB), a Chinese early education provider, filed to raise $100 million. Restoration Robotics (HAIR), which is selling robotic devices to assist doctors with hair restoration surgery, filed to raise $29 million. An early-stage online marketplace for motorcycles, RumbleOn (RMBL), filed to raise $25 million.
3 updated filings, including a billion-dollar IPO from Best
Alibaba-backed Chinese logistics company Best (BSTI) submitted an updated filing on Tuesday, increasing its maximum US IPO size to $1 billion; the company is reportedly in premarketing ahead of a September launch. Specialty building materials distributor US LBM Holdings (LBM) disclosed its 2Q17 financials in a filing on Wednesday. Despegar.com (DESP), a Latin American online travel agency, submitted an amended filing on Thursday to reflect updated operating data.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 26.6% year-to-date, ahead of the S&P 500, which is up 10.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). The Renaissance International IPO Index is up 23.3% year-to-date, while the ACWX is up 18.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay.
To find out if this is the best ETF for you, visit our IPO Investing page.
