Led by Avalara, which traded up 87% its first day, the week saw six companies raise a total of $1.3 billion. Also this week, Adaptive Insights was acquired two days before its expected IPO. As of market close today, US IPOs from the last 90 days have an average return of 47% and 78% are trading above IPO price.
| 6 IPOs During the Week of June 11th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 06/15 |
| Avalara (AVLR) | $180M | $1,705M | 20% | +87% | +87% |
| Cloud-based sales tax and compliance solutions provider. | |||||
| Puxin (NEW) | $122M | $1,575M | -8% | +24% | +24% |
| Provides K-12 after-school tutoring services in China. | |||||
| Verrica Pharmaceuticals (VRCA) | $75M | $385M | 0% | +17% | +17% |
| Developing a drug-device that eliminates viral skin lesions and warts. | |||||
| U.S. Xpress Enterprises (USX) | $289M | $798M | -16% | +4% | +4% |
| Mid-sized trucking company in the eastern US. | |||||
| Far Point Acquisition (FPAC.U) | $550M | n/aM | n/a | +2% | +2% |
| Blank check company formed by former NYSE Group President Tom Farley and Third Point to acquire a fintech business. | |||||
| Charah Solutions (CHRA) | $88M | $363M | -29% | +0% | -3% |
| Provides maintenance services to coal-fired and nuclear power plants. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Adaptive Insights (ADIN), which provides cloud-based software for financial planning, was acquired this week by Workday (Nasdaq: WDAY) for $1.6 billion two days before expected pricing of its IPO. At the purchase price, it was valued at a 151% premium to its proposed IPO enterprise value.
Ending its first day 87% above its offer price, cloud-based financial planning software provider Avalara (AVLR) raised $180 million (20% above its originally anticipated deal size). It priced above the upwardly revised range at $24 for a $1.7 billion market cap. Trading was buoyed by optimism from other recent, successful high-growth SaaS IPOs as well as the company’s strong organic growth and sticky revenue.
Charah Solutions (CHRA), which provides remediation and maintenance services to coal and nuclear plants, raised $88 million, pricing well below the $16 to $18 range at $12 with a market value of $363 billion. Exposed to industries that are in long-term decline, Charah’s stock broke its issue price during the first day of trading but closed flat on its first day. It finished the week down 2.5%.
After pricing below the range at $16, U.S. Xpress Enterprises (USX), the fifth largest operator in the US trucking industry, popped just 4% during its first day of trading. While a strong industry-wide pricing rebound leaves room for growth, the company has historically been a less efficient operator than its peers.
Puxin (NEW), the third largest provider by enrollment of K-12 after-school tutoring services in China, priced at $17, the low end of the $17 to $20 range, raising $122 million. The unprofitable Chinese company has been growing predominately through acquisition its margins are significantly below peers.
Verrica Pharmaceuticals (VRCA) priced at $15, the midpoint of the range, raising $75 million and commanding a market value of $290 million. The company is developing a drug-device that eliminates viral skin lesions and warts using cantharidin, a known remedy for the skin condition.
Far Point Acquisition (FPAC.U) raised $550 million and traded up 1.6% during the first day. It is led by former NYSE president Thomas Farley, seeking to acquire a fintech company.
M17 Entertainment (YQ), a Taiwan-based live music streaming platform and dating app, officially postponed its IPO on Wednesday. The company announced that it had raised $35 million of private capital instead, after delaying its listing due to “settlement issues.”
| 2 Filings During the Week of June 11th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Navios Maritime Container (NMCI.RC) | $100M | Industrials | JP Morgan |
| Monaco-based container ship company formed by Navios Holdings. | |||
| Bloom Energy (BE) | $100M | Utilities | JP Morgan |
| Sells clean energy power generators based on solid oxide fuel cell technology. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 11.9% year-to-date, while the S&P 500 is up 4.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and US Foods (USFD). The Renaissance International IPO Index is down -2.4% year-to-date, while the ACWX is down -1.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.
