Four companies raised a combined $1.8 billion in the public markets this week, with three posting first-day returns greater than 50%.
CrowdStrike Holdings (CRWD), a provider of cloud-native endpoint security software for large enterprises, raised $612 million by offering 18.0 million shares at $34, 62% above its original midpoint. That is the largest price increase since Splunk went public in 2012 and priced its IPO at an 89% premium. Despite pricing well above its revised range, CrowdStrike had a first day pop of 71% and closed the week with a 99% overall return.
Fiverr International (FVRR), an online marketplace to hire and manage remote freelancers, also priced above its original range at $21, allowing it to raise $111 million by offering 5.3 million shares. Fiverr's IPO led the way this week with a first day pop of 90%, before dropping 21% on Friday and finishing 50% above offer.
The highly anticipated Chewy (CHWY) IPO also achieved an impressive feat: with a first day pop of 59%, it is the largest first day return for a billion-dollar IPO since Twitter's 73% pop in 2013. Chewy, which is being spun out of PetSmart, is the largest US online retailer of pet food and supplies. The company raised $1 billion by offering 46.5 million shares at $22, 22% above its original midpoint. The e-tailer's IPO was well-received on its first day, despite being unprofitable and having a messy governance picture with PetSmart.
Growth is driving the high demand for these richly-priced IPOs. CrowdStrike, Fiverr, and Chewy boast year-over-year growth of 110%, 45%, and 68%, respectively, and despite all three companies pricing at a premium, investors are still willing to bite.
| 4 IPOs During the Week of June 10th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 06/14 |
| CrowdStrike (CRWD) | $612M | $7,681M | 62% | +71% | +89% |
| Provides cloud-native endpoint security software for large enterprises. | |||||
| Chewy (CHWY) | $1,023M | $9,402M | 22% | +59% | +59% |
| Largest US online retailer of pet food and supplies being spun out of PetSmart. | |||||
| Fiverr International (FVRR) | $111M | $705M | 11% | +90% | +50% |
| Online marketplace to hire and manage remote freelancers. | |||||
| Mohawk Group (MWK) | $36M | $178M | -33% | +0% | -15% |
| Sells consumer products based on market data gathered using its AI platform. | |||||
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Churchill Capital Corp II (CCCT.RC), the second blank check company founded by dealmaker and former Citi executive Michael Klein, was the only company that submitted an initial filing this past week.
| 1 Filing During the Week of June 10th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Churchill Capital Corp II (CCCT.RC) | $400M | SPAC | Citi |
| Second blank check company founded by dealmaker and former Citi executive Michael Klein. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/13/19, the Renaissance IPO Index was up 35.9% year-to-date, while the S&P 500 had a gain of 16.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Okta (OKTA) and Elanco (ELAN). The Renaissance International IPO Index was up 11.3% year-to-date, while the ACWX was up 10.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
