1) Initial Public Offerings are back with a vengeance Four IPOs began trading on Thursday, while three more begin today. All three IPOs set to begin trading today priced more shares than expected.
At the NYSE, insulation manufacturer Aspen Aerogels priced 7.5 million shares—more than expected—at $11, below the $14 to $16 range, making the total deal size was lower at $82.5 million. They make pipe insulation, and the company previously filed for an IPO in June 2011. They withdrew the offering in May 2013.
On the NASDAQ, Abengoa Yield, which owns renewable and conventional power and electric transmission assets, priced 24.8 million shares, also more than expected, at $29—above the $25 to $27 price talk. They have assets that include electricity from solar energy, wind, and other conventional electricity, all acquired from their parent. This is a dividend play: the initial dividend yield is 3.6 percent, but the expectation is that yield will rise.
Oil and gas exploration and production (E&P) Memorial Resource Development priced a better-than-expected 42.8 million shares at $19, above the $16 to $18 range. This is an oil and natural gas play focused on Louisiana. Natural Gas Partners is backing this, they were behind several other deals in the last year, including RSP Permian.
The Renaissance Capital IPO ETF has been rallying recently, up about 10 percent in the last three weeks.