U.S. IPO Weekly Recap: 2017 Kicks Off With A $1 Billion IPO Filing

Includes: CLPR, NMG, OBSV
by: Renaissance Capital IPO Research

Two new companies joined the IPO pipeline during the first week of 2017. Blackstone's Invitation Homes (NYSE:INVH), the the nation's largest owner of single-family houses, filed for an IPO that we estimate will raise $1.5 billion or more. As a JOBS Act filer, the REIT could begin trading as early as the week of January 30. Following a string of recent filings from the energy sector, founder-owned Kimbell Royalty Partners (NYSE:KRP) filed for a $100 million IPO; the company controls oil and gas mineral interests across the US.

Equity markets also hit the ground running, with the Renaissance IPO Index up 3.2% this past week, compared to the S&P's 1.7%.

Other notable news and updates: Neiman Marcus withdraws

Neiman Marcus (NMG) withdrew its IPO filing this past week. Bought by Ares Management and CPPIB in 2013 for $6 billion, the luxury retailer has been on file for estimated $1 billion IPO since August 2015, but a heavy debt burden and weak sales caused it to begin looking for a buyer last year. LBO'd door and window manufacturer JELD-WEN disclosed insider selling in an updated filing, while recent biotech filer ObsEva (NASDAQ:OBSV) disclosed insider buying. Clipper Realty (NYSE:CLPR), a recently-formed New York REIT, also updated its filing.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has gained 3.2% year-to-date, while the S&P 500 is up 1.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include First Data (NYSE:FDC) and TransUnion (NYSE:TRU). The Renaissance International IPO Index is up 1.4% year-to-date, while the ACWX is up 2.1%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Aena and ABN Amro.