Just one week old, the 2Q has already seen one pricing, three launches, three initial filings and significant filings updates. This represents the most IPO-related activity since early in the 1Q.
A familiar move from the biotech playbook
Aeglea BioTherapeutics (NASDAQ:AGLE), which is developing enzymes for rare genetic metabolic diseases and tumors, raised $50 million by offering 5.0 million shares at $10, significantly below the $16 to $18 range. Keeping with this year's trend in biotech IPOs, 64% of the deal was taken down by insiders.
|One biotech IPO during the week of April 4, 2016|
|Company (Ticker)||Business||Deal size ($mm)||IPO price vs. midpoint||1st-day pop||Return at 3/18|
|Aeglea BioTherapeutics||Enzymes for rare genetic diseases and tumors||$50||-41.2%||-2.3%||19.9%|
Three established, profitable operating companies launch
Breaking a two month drought for operating company launches, the week saw three profitable companies with established operating histories set terms for their IPOs: Bats Global Markets (BATS:BATS), an operator of securities exchanges in the US and Europe, set terms to raise $202 million, MGM Growth Properties (NYSE:MGP), the MGM Resorts-backed REIT, set terms to raise $975 million, and American Renal Associates Holdings (NYSE:ARA), an operator of 192 kidney dialysis clinics, set terms to raise $161 million. If all three price successfully, the aggregate $1.3 billion in proceeds would represent nearly double this year's total.
IPO pipeline expands
Global CRO inVentiv Group Holdings (VTIV) filed to raise an estimated $500 million, China-based online metals brokerage Yintech Investment Holdings (NASDAQ:YIN) filed to raise $80 million, Novartis-backed biotech Viamet Pharmaceuticals (Pending:VMET) refiled to raise $100 million and soft drink producer Long Island Iced Tea Corp. (NASDAQ:LTEA) filed to raise $11.5 million. High-growth software-defined storage provider Nutanix (NASDAQ:NTNX), building materials distributor GMS (NYSE:GMS) and Novartis-backed biotech Merus (NASDAQ:MRUS) and health care REIT MedEquities Realty Trust (NYSE:MRT-OLD) also updated financials.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 8% year-to-date, while the S&P 500 is flat. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (NYSE:BABA), Synchrony Financial (NYSE:SYF) and Citizens Financial Group (NYSE:CFG). The Renaissance International IPO Index is down 4% year-to-date, compared to -2% for ACWX. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include NN Group and Aena S.A.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.