“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.
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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