Renaissance Capital, the Connecticut-based issuer of the Renaissance IPO ETF (NYSEArca: IPO), said it will add Synchrony Financial (NYSE: 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 (NYSE: TWTR) and Zoetis (NYSE: 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.