U.S. IPO Weekly Recap: 6 New Filings Signal An Active Fall

Includes: BSTI, DESP, TRMT
by: Renaissance Capital IPO Research

No IPOs priced during the shortened holiday week, but new filing activity remained strong: there have been 15 filings over the past two weeks, signaling a busy October. Six companies set terms this week, including Alibaba (NYSE:BABA)-backed logistics firm Best (BESTI), Latin American online travel agency Despegar.com (NYSE:DESP), mortgage REIT Tremont Mortgage Trust (NASDAQ:TRMT) and three micro-cap biotechs.

2017 IPO performance continued to rally; the YTD average total return is 20.5% from the IPO price, including 9.3% from aftermarket trading. Biotechs, in particular, fueled the recent run-up; this year's 20 biotech IPOs average a total return of 39.7% with aftermarket returns of 27.7%.

9 Filings During the Week of September 4, 2017


Deal Size


Lead Underwriter

Loma Negra



BofA Merrill Lynch

Leading Argentine cement producer.




Goldman Sachs

Operates data centers and provides data management systems.

MPM Holdings




Restructured global producer of specialty silicones and other chemical additives.

Rhythm Pharmaceuticals


Health Care

Morgan Stanley

Clinical-stage biotech developing peptide-based therapies for genetic obesity.

Hancock Jaffe Laboratories


Health Care

Network 1 Financial

Developing bioprosthetic devices for cardiovascular surgeries.

Adial Pharmaceuticals


Health Care

Aegis Capital

Developing a targeted therapy for alcohol use disorder based on an approved drug.

*Deal size is RC estimate

US IPO Pipeline Update

Six companies joined the IPO pipeline, expecting to raise a combined $1.1 billion. Argentine cement producer Loma Negra (NYSE:LOMA) plans to raise an estimated $500 million; the company plans to sell shares in both Argentina and New York. Intel (NASDAQ:INTC)-backed data center operator Switch (NYSE:SWCH) filed to raise an estimated $300 million. During the 1H17, the company posted 17% revenue growth ($181 million) as customer count rose 10% to 808 at period-end. Momentive (MPMH), a restructured global producer of specialty silicones, ceramics and quartz, plans to raise up to $100 million; it is currently listed on the OTC Markets under the ticker OTCQX:MPMQ and closed on Thursday with a market cap of $778 million. Rhythm Pharmaceuticals (NASDAQ:RYTM), a clinical-stage biotech focused on peptide-based therapeutics to treat genetic obesity, plans to raise up to $115 million. The company successfully sold its last development drug, relamorelin, to Allergan (NYSE:AGN) in 2014 for $200 million after positive phase 2 results. Bioprosthetic device maker Hancock Jaffe Laboratories (HJL.RC) and alcohol-abuse biotech Adial Pharmaceuticals (NASDAQ:ADIL) filed to raise $15 million and $14 million, respectively.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 25.6% year-to-date, ahead of the S&P 500, which is up 9.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (NYSE:RACE) and First Data (NYSE:FDC). The Renaissance International IPO Index is up 24.0% year-to-date, while the ACWX is up 18.7%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay.