ETF Trends
ETF Trends

Renaissance Capital, the issuer of the Renaissance IPO ETF (NYSEArca: IPO), announced IPO’s first new addition of October by saying the ETF will add shares of newly public Zayo Group (NYSEArca: ZAYO).

Colorado-based Zayo is a provider of bandwidth services throughout the U.S. and Europe. The company also offers 37 carrier-neutral colocation facilities across the U.S. and France. The company sold just over 21 million shares last Friday at an offering price of $19. The stock would proceed to close higher by nearly 16%.

“At the pricing terms, Zayo’s market value stands at $4.5 billion and qualifies for inclusion in the Renaissance IPO ETF at the market’s close on October 23, 2014,” said Renaissance Capital in a statement.

IPO “is a portfolio of the largest, most liquid U.S.-listed newly public companies prior to their inclusion in core U.S. equity portfolios. IPOs that pass Renaissance Capital’s formulated screening process are weighted by investable market capitalization, capped at 10% and removed after two years,” according to a statement released by Connecticut-based Renaissance Capital.

Prior to the announcement regarding the addition of Zayo, IPO’s most recent new addition was Alibaba (NYSE: BABA). IPO was the second ETF to add shares of the Chinese e-commerce giant, doing so five days after the widely anticipated IPO. Alibaba is the ETF’s largest holding at just over 10% of the fund’s weight. [A Real Alibaba ETF]

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