Nine companies came public this week raising a combined $1.1 billion, plus one blank check company. The week's three largest expected IPOs postponed. All but two companies priced below the target midpoint. Enterprise tech darlings SailPoint and SendGrid both priced above the range and traded up 8% and 13%, respectively, on the first day. Enterprise software IPOs have been a standout sector this year, generating an average total return of 26%. Injectable drug developer Arsanis was the week's winner, up 40% on its market debut.
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| 9 IPOs During the Week of November 13th, 2017 | |||||
| Issuer Business |
Deal Size ($mm) |
Market Cap at IPO ($mm) |
Price vs. midpoint |
First day return |
Return at 11/17 |
| Arsanis (ASNS) | $40 | $142 | -38% | +40% | +39% |
| Developing antibodies designed to prevent serious infectious diseases. |
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| SendGrid (SEND) | $131 | $805 | +10% | +13% | +16% |
| Provides a cloud-based platform for automated emails and marketing campaigns. |
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| SailPoint Technologies (SAIL) | $240 | $1,161 | +20% | +8% | +8% |
| Provides identity governance software to enterprises. |
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| Sterling Bancorp (SBT) | $180 | $636 |
-8% | +1% | +1% |
| Bank focused on residential mortgages in California. | |||||
| Stitch Fix (SFIX) | $120 | $1,527 | -21% | +1% | +1% |
| Online personal-styling service and clothing retailer. | |||||
| scPharmaceuticals (SCPH) | $90 | $257 |
-7% | +1% | +1% |
| Commercializing an injectable version of an intravenous drug for heart failure. | |||||
| Legacy Acquisition (LGC.U) | $300 | $375 |
0% | 0% | 0% |
| Consumer-focused blank check company created by former P&G executives. | |||||
| Bluegreen Vacations (BXG) | $91 | $1,046 |
-18% | -7% | -7% |
| Sells timeshares and manages resorts in the US. | |||||
| Jianpu Technology (JT) | $180 | $1,399 | -16% | +5% | -10% |
| Leading Chinese online consumer loan and credit platform. |
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| AMERI Holdings (AMRH) | $6 | $71 | -3% | -15% | -15% |
| Outsourced provider of IT services to SAP customers. |
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2 Upsized Enterprise Tech IPOs
SailPoint Technologies (SAIL), which provides identity governance software to enterprises, raised $240 million by offering 20 million shares (29% insider) at $12, above the $9 to $11 range, and traded up 8%.
Automated email platform provider SendGrid (SEND) raised $131 million by offering an upsized 8.2 million shares at $16, 10% above the midpoint of the $13.50 to $15.50 range. VC backer Bessemer bought $10 million (9%) on the offering.
A Regional Bank Trades Flat
Sterling Bancorp (SBT), a bank focused on residential mortgage loans in California, raised $180 million in an upsized IPO (49% insider) priced at the low end of the $12 to $14 range. The stock traded up 1% on its first day.
Priced to Sell: 4 Downsized IPOs
Online personal-styling service and clothing retailer Stitch Fix (SFIX) raised $120 million in a downsized IPO priced at $15, below the $18 to $20 range. The company also removed insider selling from its CEO. The stock initially popped more than 20% before breaking issue and closing up only 1% on Friday.
Jianpu Technology (JT), which operates a leading Chinese consumer loan and credit platform, raised $180 million by offering 22.5 million ADSs at $8 (below the $8.50 to $10.50 range), plus an additional $40 million in a concurrent private placement. Venture backer Sequoia added an indication ($5 million) ahead of the IPO. The sock traded up 5% on its debut, but plummeted on Friday to end the week 10% below issue.
US timeshare and resort manager Bluegreen Vacations (BXG) raised $91 million at $14, well below the $16 to $18 range, and traded down 7% on the first day. Taken private by BBX (NYSE: BBX; $895 million market cap) in 2013, its sole shareholder sold 42% of the deal.
Serious infectious disease biotech Arsanis (ASNS) raised $40 million by offering additional shares at $10, after slashing its share price (from a proposed $15 to $17). It added a $20 million concurrent private placement from NEA, in addition to insiders buying $20 million (50%) worth of shares on the offering. The stock traded up 40% on its first day, which is by far the month's biggest pop.
3 Largest Deals of the Week Postponed
Suburban office REIT Workspace Property Trust (WSPT) postponed its $527 million IPO, citing market conditions.
Global specialty chemicals producer MPM Holdings (Momentive) (MPMH) postponed its $350 million IPO plans; since it emerged from bankruptcy in 2014, revenue has declined and free cash flow has been minimal.
Leading Argentine food products company Molino Cañuelas (MOLC) postponed its $302 million global IPO, citing recent volatility in the Argentine market. The deal was coming to market in the midst of a recent selloff after the central bank decided to raise target rates.
Smaller Deals Price as Expected
Backed by 5AM ventures and OrbiMed, injectable drug developer scPharmaceuticals (SCPH) raised $90 million with insiders purchasing $35 million (39%) on the offering. The stock traded up 1% on the first day.
OTCQB-listed AMERI Holdings (AMRH), which provides outsourced IT services to SAP customers, raised $6 million in a Nasdaq uplisting that valued the unprofitable company at a $71 million market cap. The stock ended the day down 15%.
Legacy Acquisition (LGC.U), a consumer-focused SPAC created by former P&G executives, raised $300 million in its IPO. The company plans to target consumer goods companies or retail and restaurant chains. Consumer lifestyle company Level Brands (LEVB) raised $12 million in its Regulation A+ IPO and traded down 8%. At the IPO price, the company commands a market value of $47 million. We do not include Reg A+ deals or SPACs in our IPO stats.
IPO Pipeline Update
Broadband cable vendor Casa Systems (CASA) filed for a $150 million IPO. Life insurance provider Advantage Insurance (AVI) filed for a $150 million IPO. Chinese mushroom processor Farmmi (FAMI) filed for a $5 million US IPO. Dufry-owned travel retailer Hudson (HUD) filed for an estimated $400 million US IPO. Cold storage REIT Americold (COLD) filed for an estimated $500 million IPO. Camposol Holding (CMPO.RC), a global food producer, filed for a $345 million dual listing in Peru and the US. TFI TAB Food Investments (QSRG), a QSR operator in Turkey/China, files for a $400 million US IPO. Oral chemotherapy biotech Odonate Therapeutics (ODT) files for a $173 million IPO. Neurodegenerative disease biotech Denali Therapeutics (DNLI) filed for a $100 million IPO. LexinFintech (LX), a Chinese loan platform, filed for a $500 million US IPO. AXA Equitable (AXA.RC), AXA's financial arm, files for an IPO that could raise as much as $3 billion. Blank check company GigCapital (GIG.U) filed and set terms for a $150 million IPO.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 34.2% year-to-date, ahead of the S&P 500, which is up 15.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include First Data (FDC) and Square (SQ). The Renaissance International IPO Index is up 27.0% year-to-date, while the ACWX is up 22.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Japan Post and ABN AMRO Group.
