U.S. IPO Weekly Recap: IPO Market Is Back In Session As 9 Deals Join The Calendar

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Includes: CCC.U, GRSHU
by: Renaissance Capital IPO Research

As expected, a wave of deals launched after Labor Day. Nine set terms altogether, meaning the IPO calendar now contains 11 names planning to raise $4.6 billion over the next two weeks. More are expected to launch early in the coming week.

Five companies submitted initial filings, including three billion-dollar "unicorns."

Two blank check companies raised a combined $975 million in US offerings this past week. Led by dealmaker Michael Klein and former IHS chief Jerre Stead, Churchill Capital (CCC.U) upsized its offering to raise $600 million, tied for the year's largest SPAC. The Gores Group completed its third SPAC as Gores Holdings III (NASDAQ:GRSHU) raised $375 million; its past IPOs went on to acquire Hostess Brands (NASDAQ:TWNK) and Verra Mobility (GSHTU; acquisition pending).

2 SPACs During the Week of September 3rd, 2018

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 09/07

Gores Holdings III

$375M

$469M

0%

+2%

+2%

Blank check company formed by The Gores Group.

Churchill Capital

$600M

$750M

0%

+1%

+1%

Blank check company formed by dealmaker Michael Klein and former IHS CEO Jerre Stead to acquire a data and analytics provider.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 7.3% year-to-date, while the S&P 500 is up 7.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Athene (NYSE:ATH). The Renaissance International IPO Index is down 8.4% year-to-date, while the ACWX is down 7.7%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Delivery Hero and Siemens Healthineers.