There are no deals on the calendar in another quiet week ahead of an anticipated pre-holiday IPO flurry. We believe we are on pace to see roughly 160 IPOs in 2017, up 52% from last year, as companies look to price before year-end.
There has been an influx of filing activity heading into December with 15 filings in November, representing an estimated $6.1 billion in total proceeds. Renaissance Capital's IPO Index is near all-time highs (+38% YTD). However, November IPO returns were unimpressive, averaging just 1% on the first day, and three deals postponed. We believe this is indicative of a disciplined market and expect IPO investors will continue to demand a healthy discount to peers at pricing.
| Notable IPOs Able to Launch for December Pricing | ||||
| Issuer Business |
Able to Launch |
Deal Size ($m) |
LTM Sales ($m) EBIT% |
Top 3 Bookrunners |
| WatchGuard (WGRD) Allen, TX |
Now | $75 | $93 13% |
Barclays, SunTrust Robinson |
| Provides law enforcement with mobile video cameras and software. | ||||
| iClick Interactive Asia Group (ICLK) Hong Kong, China |
Now | $100 |
$111 -27% |
Network 1 |
| Leading independent online marketing technology platform in China. | ||||
| Newmark Group (NMRK) New York, NY |
Now | $600 | $1,523 16% |
Goldman Sachs, BofA Merrill Lynch, Citi |
| Commercial real estate brokerage and advisory firm backed by BGC Partners. | ||||
| Quanterix (QTRX) Lexington, MA |
Mon 11/27 |
$58 |
$23 -112% |
J.P. Morgan, Leerink Partners |
| Makes next-generation protein detection tests for clinical research. | ||||
| Luther Burbank (LBC) Santa Rosa, CA |
Mon 11/27 |
$150 |
$117 55% |
KBW, Sandler O'Neill |
| California commercial bank focused on single and multifamily residential loans. | ||||
| TFI TAB Food Investments (TFI TAB Gida) (QSRG) Istanbul, Turkey |
Tues 11/28 |
$400 |
$964 2% |
Morgan Stanley, Credit Suisse, Goldman Sachs |
| Exclusive franchisee for Burger King and other QSRs in Turkey and China. | ||||
| Odonate Therapeutics (ODT) San Diego, CA |
Tues 11/28 |
$173 |
$0 |
Goldman Sachs, Jefferies, Cowen & Company |
| Developing oral chemotherapy drugs. | ||||
| Denali Therapeutics (DNLI) San Francisco, CA |
Tues 11/28 |
$100 |
$0 |
Goldman Sachs, Morgan Stanley, J.P. Morgan |
| Developing treatments for neurodegenerative treatments. | ||||
| Americold Realty Trust (COLD) Atlanta, GA |
Wed 11/29 |
$500 |
$1,536 8% |
BofA Merrill Lynch, J.P. Morgan, RBC Capital Markets |
| REIT with the top global share in temperature-controlled storage. | ||||
| Hudson (HUD) United Kingdom |
Wed 11/29 |
$400 |
$1,767 3% |
Credit Suisse Morgan Stanley UBS Investment Bank |
| Operates airport concessions and duty-free stores across North America. | ||||
| Camposol Holding (CMPO.RC) Lima, Peru |
Wed 11/29 |
$345 |
$342 28% |
BofA Merrill Lynch, UBS Investment Bank, BTG Pactual |
| Peruvian supplier of branded off-season produce and seafood. | ||||
| Casa Systems (CASA) Andover, MA |
Mon 12/4 |
$150 |
$333 44% |
Morgan Stanley, Barclays |
| Provides high-throughput edge devices to broadband network providers. | ||||
| AXA Equitable Holdings (AXA.RC) New York, NY |
1Q18 | $3,000 |
$10,750 -2% |
Morgan Stanley, J.P. Morgan |
| US operations of life insurance and asset management firm AXA. | ||||
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Able to Launch Now:
WatchGuard (WGRD), which provides police dashboard cameras and evidence management software, filed for a $75 million IPO in October. The company generates revenue from in-car video systems (65% of YTD revenue), body cameras (19%), technical services (6%), extended warranties (5%) and software (4%).
Chinese online marketing platform iClick Interactive Asia Group Limited (ICLK) filed to raise up to $100 million in an IPO in October. The company operates in eight locations worldwide and provides data-driven solutions to help marketers identify, engage and activate potential customers, monitor and measure the results of marketing campaigns, and create content through both PC and mobile devices.
In a spin-out from its parent company, BGC Partners (Nasdaq: BGCP), Newmark Group (NMRK), filed for an estimated $600 million IPO in October. The entity will include commercial brokerage Newmark Knight Frank and mortgage firm Berkeley Point.
Able to Launch Monday (11/27):
Next-generation life sciences company Quanterix (QTRX) filed for a $58 million IPO in early November. Its digital health solution, Simoa, enables researchers to reliably detect protein biomarkers in extremely low concentrations with the goal of earlier disease detection, better prognosis and enhanced treatment methods.
California bank Luther Burbank (LBC) filed for a $150 million IPO in early November. Founded in 1983 by Chairman Victor Trione, the commercial bank is focused on single and multifamily residential loans.
Able to Launch Tues (11/28):
QSR operator in Turkey/China TFI TAB Investments (QSRG) filed for a $400 million IPO earlier this month. The company is an exclusive franchisee for Burger King and other QSRs.
Odonate Therapeutics (ODT), which is developing oral chemotherapy drugs, filed for a $173 million IPO earlier this month. Its lead product candidate is a novel chemotherapy agent that has demonstrated robust single-agent antitumor activity in two Phase 2 studies. The company expects to begin enrolling patients in a Phase 3 study in the 4Q17 with results expected in 2020.
Denali Therapeutics (DNLI), which is developing treatments for neurodegenerative diseases, filed for a $100 million IPO in November. Founded by former Genentech employees, the pre-revenue company has raised $350 million to date. Its lead program targets LRRK2 for the treatment of Parkinson's disease and has a product candidate currently in Phase 1 development.
Able to Launch Wed (11/29):
Global leader in the temperature-controlled storage industry Americold Realty Trust (COLD) filed for a $10 million IPO earlier this month; however, the deal size is likely a placeholder for an IPO that we estimate could raise $500 million or more. The company previously set terms to raise $645 million in an April 2010 IPO, but postponed and eventually withdrew its offering. It reportedly rejected a $3 billion-plus offer from the Blackstone Group in October and would continue to pursue a dual track sale or IPO.
Hudson (HUD), which operates airport concessions and duty-free stores across the US and Canada, filed for a $100 million IPO (100% insider) earlier this month, although the deal size is likely a placeholder for an IPO that we estimate could raise $400 million or more. The company is being spun-out from Swiss duty-free retailer Dufry Group (SW: DUFN; 100% pre-IPO stake), which acquired Hudson in 2008 for an estimated $446 million.
Global food producer Camposol Holding (CMPO.RC) filed for a $345 dual listing in Peru and the US. The company is raising funds to boost liquidity and for expansion.
Other Notable Launches:
LexinFintech Holdings (LX), an online provider of installment-based loans to young Chinese consumers, is currently able to launch its $500 million IPO, but as discussed in this week's weekly recap, those plans could change following the recent sell-off of its Chinese lending peers.
Broadband cable vendor Casa Systems (CASA) is able to launch its $150 million IPO on Monday, December 4. The company provides software-centric broadband solutions (primarily CCAP solutions) to over 400 customers, including Time Warner Cable (36% of YTD revenue) and Liberty Global (11%).
AXA's US financial services arm AXA Equitable (AXA.RC) filed for a $100 million IPO earlier this month and could launch in the 1Q18. However, the deal size is likely a placeholder for an IPO that we estimate could raise as much as $3 billion, making it the largest deal in the pipeline. The company's core franchises are AXA Equitable Life and AllianceBernstein and have a combined $600+ billion in AUM.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 38.8% year-to-date, ahead of the S&P 500, which is up 16.2%. 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 23.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Japan Post and ABN AMRO Group.
