What’s the play? When the IPO quiet period for Athene Holding Ltd (NYSE:ATH) comes to an end on January 3rd, the company’s strong (and numerous) group of underwriters will finally be allowed to release detailed reports about the company and initiate coverage. ATH’s strong IPO debut and solid fundamentals mean that these reports will likely be overwhelmingly positive and push shares higher.
What to do? Buy shares over the next few trading sessions (mindful that markets are closed Monday the 26th). Ride the anticipation of the IPO quiet period expiration higher and sell shares once the reports are released.
Business Summary: A retirement savings company, which provides life insurance and fixed annuities; backed by Apollo Global Management.
IPO Performance: ATH went public on 12.8 and jumped 10.1% on its first day of trading, and another 3.8% in the after-market. The company priced at $40, offering 27M shares. ATH is now priced at $45.73, up a total of 14.3% from its IPO price (12.19.2016 closing session).
Underwriters: The lead underwriters for the IPO include Goldman, Sachs & Co., Barclays, Citigroup and Wells Fargo Securities. The entire group numbers 22 investment banks.
Notes: Despite a relatively weak IPO market in 2016, ATH was one of the few deals we liked. We now recommend investors consider purchasing IRTC ahead of its QP expiration date. Our firm’s research shows above-market returns particularly for companies in the tech sector.