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US IPO Weekly Recap: AppDynamics taken out, 6 IPOs price

The star was taken, but the show must go on.

This week saw six companies IPO, but AppDynamics ( APPD ) was notably missing as Cisco (Nasdaq: CSCO) acquired it for $3.7 billion just the night before it was going to price. Cisco's offer represents a 68% premium to AppDynamics' proposed IPO valuation (at the high end of the range). It had increased the proposed range for the deal and would have been valued at $2 billion at the midpoint. This unicorn was set to be the first VC-backed tech deal of the year and was going to test investors appetite for high-growth, large-loss businesses. The buzz ahead of the highly anticipated deal was a positive sign.

6 IPOs Priced During the Week of January 23rd, 2017
IssuerBusiness Deal Size($mm) IPO MarketCap ($mm) Price vs.midpoint First dayreturn Returnat 1/27
JELD-WEN ( JELD ) $575 $2,500 -12% -4% -4%
Global manufacturer of doors, windows and treated composite trim and panels.
Jagged Peak Energy ( JAG ) $474 $3,067 +5% +14% +14%
Oil and gas E&P operating in the Delaware Basin in West Texas.
REV Group (REVG) $275 $1,463 +10% +14% +14%
Leading manufacturer of emergency and specialty vehicles.
Jounce Therapeutics (JNCE) $102 $553 +14% +8% +8%
Early-stage biotech developing T cell immuno-oncology therapies with Celgene.
ObsEva (OBSV) $97 $444 0% -22% -22%
Clinical-stage pharma developing therapies for women's reproductive health.
AnaptysBio (ANAB) $75 $314 0% +13% +17%
Early-stage biotech developing antibodies for severe inflammatory conditions.

JELD-WEN ( JELD ), a global manufacturer of residential windows and doors, priced its $575 million offering at $23, above the range in an upsized deal. The offering valued the 2011 LBO at $2.5 billion.

Jagged Peak ( JAG ), which is an oil and gas E&P operating in the Permian Basin backed by Quantum Energy Partners, prices a downsized offering at $15, below the range, valuing the company at $3.1 billion. Its valuation comes at a discount to an otherwise bullish industry, which may be reflecting execution risk and weak recent E&P IPO performance.

REV Group (REVG) raised $275 million by offering 12.5 million shares at $22, above the range. This offering values the maker of fire trucks and street sweepers at $1.5 billion. REV Group is a Milwaukee, WI-based rollup that has seen its acquisitive growth bring it to leading market positions.

Three biotechs price, one doesn't

Jounce Therapeutics (JNCE), ObsEva (OBSV) and AnaptysBio (ANAB) were able to get deals done this week, but Visterra (VIST) was not and is now day-to-day. The three that did price have had very different results in their trading. AnaptysBio , which is raising capital as it develops antibodies for severe inflammatory conditions, has risen 17% after pricing at the midpoint on Wednesday. Jounce , which is collaborating with Celgene to develop T cell immunotherapies, has traded up 8% in its first day of trading after pricing an upsized offering above the range. Swiss pharma ObsEva plunged -22%, only one deal had a worse first day in all of 2016, it is developing therapies for women's reproductive health and common pregnancy complications.

The IPO pipeline

Seven companies updated filings this week including IC Power (ICP), Ramaco Resources (METC) and Invitation Homes (INVH) launching deals. If all goes according to plan, Invitation Homes will raise $1.5 billion and become the largest IPO since October 2015. Presidio (PSDO), Kimbell Royalty Partners (KRP), Mauser Group (MSR) and Braeburn Pharmaceuticals (BBRX) all amended filings, but did not set terms. There were no new initial filings.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 4.9% year-to-date, while the S&P 500 is up 2.5%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include First Data (FDC) and TransUnion (TRU). The Renaissance International IPO Index is up 3.6% year-to-date, while the ACWX is up 4.3%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include Aena and ABN Amro .

The article US IPO Weekly Recap: AppDynamics taken out, 6 IPOs price originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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