U.S. IPO Weekly Recap: August Lull Ends With The Average 2016 IPO Up 32%

Includes: ATH, CWH, FBK, NTB
by: Renaissance Capital IPO Research

The market's annual August pause is over, and IPO activity is slated to pick up next week.

While there are no IPOs scheduled for the upcoming week, several in the active pipeline are eligible to launch. Based on recent filings, the tech sector could see a flurry of deals launch. Investors will no doubt be interested in seeing if the sector's hot streak can continue: the 13 tech IPOs that have raised over $50 million in the past 12 months have an average return of +80%.

Two operating companies and one SPAC file

Just two companies submitted initial filings this past week: Tennessee bank CapStar Financial (NASDAQ:CSTR), which plans to raise $46 million and genetic testing micro-cap, Fulgent Genetics (NASDAQ:FLGT), which plans to raise $50 million. CapStar has $1.3 billion in assets and competes with FB Financial (NYSE:FBK), which filed earlier this month. Blank check company Avista Healthcare Public Acquisition (NASDAQ:AHPAU) filed to raise $300 million; it is backed by Avista Capital ($6 billion in AUM) and led by Avista's co-founder and co-CEO, Thompson Dean. Additionally, updated filings were submitted by Athene Holding (NYSE:ATH), Mauser Group (MSR), The Bank of N.T. Butterfield & Son (NYSE:NTB) and Camping World Holdings (NYSE:CWH), suggesting plans to move forward with offerings in the fall.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 1% year-to-date, while the S&P 500 is up 7%. 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 2% year-to-date, compared to +5% for ACWX. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include NN Group and Aena S.A.