IPO ETF Makes Room for Mobileye

ETF Trends

Renaissance Capital, the issuer of the Renaissance IPO ETF (IPO) , said the fund will add newly public Mobileye (MBLY).

Mobileye, the Israel-based developer of camera-based Advanced Driver Assistance Systems (ADAS), raised $890 million. At the $25 offer price, Mobileye commands a market cap of $5.9 billion and qualifies for inclusion in the Renaissance IPO ETF at the market’s close on August 8, 2014, according to a statement issue by Renaissance Capital.

Mobileye went public Friday, surging $12, or 48%, to $37. The company is a supply to major automotive makers such as BMW, General Motors (GM) and Elon Musk’s Tesla (TSLA).

Last Friday, Renaissance Capital said IPO will add Synchrony Financial (SYF), the recent consumer credit spin-off from General Electric (GE) to IPO’s lineup at the close of U.S. markets Aug. 7. [A New Addition for the IPO ETF]

In June, Renaissance removed nine stocks from IPO and added 13 as part of its quarterly rebalance. IPO has the flexibility to add stocks on a “fast track” basis, usually at the end of a new issue’s fifth trading day. The ETF also caps an individual holdings weight at 10% at the quarterly rebalance and removes companies that have been public for two years.

Mobileye “reports to have 3.3 million cars on the road using its technology. It reported $35.65 million in revenue for the first three months of the year, but posted a net loss of $19.56 million for the same period,” according to StockTwits.

IPO debuted in October 2013 and had $26.5 million in assets under management as of Aug. 1, according to issuer data.

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