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IPO ETF to Add GE Spin-Off Synchrony Financial


Renaissance Capital, the Connecticut-based issuer of the Renaissance IPO ETF (IPO) , said it will add Synchrony Financial (SYF) to IPO’s lineup at the close of U.S. markets Aug. 7.

“Synchrony Financial GE’s private label credit card and consumer finance business, priced its IPO at $23. The gross proceeds of $2.9 billion make it the largest US IPO of the year. Synchrony commands a market cap of $19 billion and qualifies for inclusion in the Renaissance IPO ETF,” said Renaissance in a statement.

IPO is currently home to 66 stocks with a combined 20% of its weight going to Twitter (TWTR) and Zoetis (ZTS). [Twitter Bounce for 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 cap’s an individual holdings weight at 10% at the quarterly rebalance and removes companies that have been public for two years.

Shares of Synchrony closed at $23 Thursday, the company’s first day of trading, and are off half a percent Friday. The company is the largest issuer of store credit cards.

“GE, which didn’t sell shares in the IPO, will own 85 percent of the company after Synchrony sold a 15 percent stake,” according to Bloomberg.

Renaissance IPO ETF


ETF Trends editorial team contributed to this post.

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