A flurry of IPOs joined the calendar to kick off the new year, most notably ADT. Less than two years since Apollo took the security services behemoth private, ADT (ADT) launched a $2 billion public offering that will value the company at $14 billion.
After postponing its IPO in 2017, fracker Liberty Oilfield Services (LBRT) will be making a second attempt now that oil prices have recovered. The $1.7 billion proposed valuation will be a discount to last time.
Industrial Logistics Property Trust (ILPT), an industrial REIT spun out of Select Income REIT (Nasdaq: SIR), set terms for a $590 million IPO that will value the company at $1.9 billion.
Entera Bio (ENTX), an Israeli oral drug developer set terms to raise $55 million at a $141 million market cap.
Preclinical biotech Cue Biopharma (CUE) began trading this week after completing a "best efforts" offering in December. Its stock finished Friday up 100% from the IPO price, though with relatively low volume.
US IPO Pipeline Update: New filings and a Spotify update as the pipeline fills up
Two companies and a SPAC filed this week. Power producer Central Puerto (CEPU) filed to raise an estimated $400 million, the latest Argentina-based company to file to list in the US. Argentina's market-friendly policies have driven up Argentine equities over the past year. Israeli intraprocedural colonoscopy cleaning device company Motus GI Holdings (MOTS) filed to raise $29 million. Blank check company Iron Horse Acquisition (LOU.U), backed by Cerberus Capital Management executives, filed to raise $500 million.
News hit this week that Spotify confidentially filed with the SEC for a direct listing that could come in March or April.
There are now a number of potential billion-dollar IPOs in our active pipeline: AXA Equitable Holdings (AXA.RC), Argentine airport operator Corporación América Airports (CAAP) and entertainment REIT VICI Properties (VICI) could all come public in the first quarter.
2017 US IPO Recap
The IPO market closed out 2017 with 160 companies raising $36 billion. 64% finished the year above their issue price and the average return was 26%. In a strong year for the US economy, Industrials was the best performing sector, notching a 40% average return from IPO. For a full recap of the year, and to see our expectations for 2018 IPOs, check out the updated Renaissance Capital 2017 US IPO Annual Review.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 1.3% year-to-date and the S&P 500 is up 2.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snap (SNAP) and Invitation Homes (INVH). The Renaissance International IPO Index is up 2.2% year-to-date, while the ACWX is up 3.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.
