US tech IPOs virtually disappeared in the 4Q19 following disappointments from multiple fast-growing, unprofitable unicorns. Healthcare (55% of 4Q IPOs) and Chinese issuers (24%) have monopolized IPO deal flow since October, but tech is returning to market alongside a comeback in the IPO Index. Back-office automation unicorn Bill.com (BILL) and social media management software Sprout Social (SPT) are expected to IPO next week, joined by Chinese software platform OneConnect Financial Technology (OCFT).
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|US Tech Issuers with $1B+ Valuations at IPO|
|US Tech Issuers with $1B+ Valuations at IPO||More Pricing Pressure in the 4Q19 IPO Market|
|1Q19||1||In the 9mo19||In the 4Q19|
|2Q19||8||# of IPOs||119||33|
|3Q19||6||Avg Offer Price vs. Midpoint||2%||-10%|
|4Q19||0||% of Pricings Below Midpoint||30%||76%|
|Avg First Day Return||21%||4%|
|Avg Aftermarket Return||-4%||8%|
|Avg Return from IPO||16%||14%|
|% Trading Above Issue||54%||64%|
Investment Disclosure: Renaissance IPO ETF (symbol: IPO) Renaissance International ETF (symbol: IPOS)
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