New IPO Benchmarking Features

A detailed tour of the new IPO benchmarking features in the platform

Posted by Meghana Viswanath (Product Development Lead, Procensus) on April 27, 2016

We’re excited. We release new features and improvements frequently as part of our continuous delivery model within the product development team. But this week saw us reach a pretty cool milestone.

Since our launch back in October of last year, we have run 12 pre-IPO pulse checks - capturing and gauging opinion on all the key Financials sector IPOs that have taken place in the last few months. Combining this with our historic data sets from one of our flagship Data Partners, Autonomous we now have a comprehensive library of opinion on over 25 different IPOs going back to 2014.

We have focussed a lot of development effort in creating creating a competitive advantage for our community around these IPO data sets. Ultimately cutting through the noise and bringing greater levels of transparency to the deal process for buy side investors. Off the back of the recent BATS IPO (click here to view within our secure area), we now have a host of new features that allow for more powerful lensing and benchmarking between different IPOs.

We thought it would be fun to write a quick blog article to let our community know about some of the great features that have recently been added.

Simpler Layout

Simpler Pulse-Check
Layout

The standard results page for all pulse checks has been overhauled. This also benefits the IPO results pages. We’ve freed up more real-estate on the screen for the charts and created a new menu system for the key sections of the results:

  • Summary - key summary information
  • Most Interesting - highlighted charts and free text responses from the community
  • Full Results - interactive results on all questions
  • Slide Show - improved experience for stepping through the results

IPO Benchmarking Leaderboard

Benchmarking
Leaderboard

The summary screen now includes a much improved waterfall chart for comparing the overall sentiment of the IPO against other related deals. It’s quick and easy to see at a glance where this deal ranks.

Improved Participant Filtering

We now offer improved participant filtering against all pulse checks including IPOs. By clicking the filter button on the results page…

Filter
Button

…you are presented with participant demographics filter menu:

Improved Participant
Filtering

This powerful menu allows you to filter the entire results set based on participant demographics. The participant filter provides insight into how different cohorts within the community are thinking, whilst still adhering to the core community principle of anonymity and protecting individual opinion. Using this tool, you can now quickly and easily see how investors from different regions, with different fund types and strategies think of the deal.

Answer Cohort Filtering

A neat but, currently hidden, feature is answer cohort filtering. For any survey question chart, you can filter the whole data set base on who selected a particular choice.

For example, on the BATS IPO (click here to view within our secure area) we might look at the “competitive advantages” question.

IPO Competitive
Advantages

Here we would like to know how the opinion looks across the whole pulse check for user’s that voted that the competitive advantages of the company were “Clear”. This is dead simple, we simply click on the “Clear” column in the chart:

Answer Cohort
Filtering

This automaticaly adds the question choice into your participant demographics filter menu:

Answer Cohort
Filtering

Resulting in all data in the pulse check being filtered to those participants who chose “Clear” as their answer to the competitive advantages question.

Answer Cohort
Filtering

IPO Detailed Benchmarking

The majority of the questions on the IPO pulse now offer a benchmarking capability. This allows you to compare the following aspects of the deal against similar IPOs:

  • Attractions of the IPO
  • Competitive Advantages
  • Timing
  • Management Rating
  • Management Targets
  • General Thoughts
  • Upside Risks
  • Downside Risks
  • Short-Term Prospects
  • Long-Term Prospects
  • Valuation v Peers
  • Pricing Expectations
  • Pricing Appetite
  • Long-Term Industry View
  • Quality of the Deal Process

Let’s take one of these an an example, the “Management Targets”. Drilling into the ABN Amro IPO pulse check (click here to view within our secure area). We can see that the confidence in management targets laid out in the prospectus was fairly neutral.

IPO Detailed
Benchmarking

By selecting the “Show Benchmark Data” button…

IPO Detailed
Benchmarking

…we can see at a glance how this confidence level compares with other IPOs, with ABN actually comparing pretty favourably in relation to management target confidence.

IPO Detailed
Benchmarking

IPO Pricing Benchmarking

IPO Detailed
Benchmarking

We love the pre-IPO pricing bell curves (see above screenshot) and therefore the pricing benchmarking deserves a special mention. We’ve added even more extensive benchmarking into this section because it’s such a critical data point and offers value to investors who are thinking about participating. Here’s a quick tour of the various benchmarking charts. In the following example we look at Pricing Expectations on ABN Amro (click here to view within our secure area).

Please note - given the value of the data we have obfuscated the other IPOs because this is a public blog article accessible outside of the Procensus community.

IPO Detailed
Benchmarking

This first benchmark chart shows us how high or low the pricing is expected to be in relation to middle (median) specified pricing range. The further left the bar goes, the lower the price expectation is. Conversely, the further right the bar goes, the higher the price expectation.

IPO Detailed
Benchmarking

The variance in the pricing enables us to see how well aligned consensus is across the community. For this particular question, the smaller the variance, the more concentrated the consensus is around where the community expects the deal to come / price. As can be seen there was a relatively high concentration of consensus for ABN.

IPO Detailed
Benchmarking

The final chart in the pricing benchmarking is a comparison between Pricing Expectations and Pricing Appetite. Showing the skew to the downside (left) and skew to the upside (right).

IPO Cross Navigation

A small, but useful feature is the cross-navigation between IPOs within the Procensus library. On any benchmarking chart, you can now click on the name of any IPO…

IPO Detailed
Benchmarking

Clicking on the Square IPO label, takes us into the relevant pulse check. Simple.

IPO Detailed
Benchmarking