As expected, the 2019 US IPO market is off to a slow start. This is largely driven by three factors:
1. January is typically a less active month for IPOs
2. The market's recent downturn and spike in volatility makes it difficult to price new deals
3. There will be no IPOs until the US's partial government shutdown is resolved
However, recent filings point to the most likely candidates for 2019's first IPOs. Continuing a major theme of last year, these have mostly been biotechs and Chinese companies , despite some recent poor returns from both groups. Biotechs are not impacted by broader economic forces, and for both biotechs and Chinese companies, many recent IPOs included significant insider buying, in several cases over 75% of the offering.
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Start a Free Trial of IPO ProSeven biotechs have submitted initial filings in the past few weeks
, notably Gossamer Bio
), which plans to raise $265 million, and Alector
), on file for $150 million.
|7 Recent Biotech IPO Filings|
|Alector ( ALEC )||$150M||01/07/19||Morgan Stanley|
|Anchiano Therapeutics ( ANCN )||$35M||01/07/19||Oppenheimer|
|Poseida Therapeutics ( PSTX )||$115M||01/04/19||Citi|
|Stealth BioTherapeutics ( MITO )||$86M||12/28/18||Jefferies|
|TCR2 Therapeutics (TCRR)||$100M||12/28/18||Jefferies|
|Harpoon Therapeutics (HARP)||$86M||12/27/18||Citi|
|Gossamer Bio ( GOSS )||$265M||12/21/18||BofA ML|
Meanwhile, four Chinese companies have filed for US IPOs since mid-December
, including a $300 million proposed offering from fast-growing online broker
(FHL). The other three are micro-caps.
Aside from those, a number of other filings from January and late 2018 could launch offerings when government agencies eventually re-open. Some of the largest include Blackstone's subprime auto lender Exeter Finance
(XTF), LBO'd hospital operator Ardent Health
(ARDT), Canadian casino operator Gateway Casinos
(GTWY), gene-edited crop company Cibus
(CBUS), Florida railway operator Virgin Trains USA
(VTUS), and plant-based burger company Beyond Meat
|6 Other Recent IPO Filings|
|Exeter Finance (XTF)||$100M||01/08/19||Citi|
|Beyond Meat (BYND)||$100M||12/16/18||Goldman|
|Ardent Health (ARDT)||$400M||12/04/18||Barclays|
|Gateway Casinos (GTWY)||$100M||11/20/18||Morgan Stanley|
|Cibus (CBUS)||$100M||11/16/18||Morgan Stanley|
|Virgin Trains USA (VTUS)||$100M||11/16/18||Barclays|
The article These will be the first IPOs of 2019
originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure:
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO)
, Renaissance International ETF (symbol: IPOS)
, or separately managed institutional accounts may have investments in securities of companies mentioned.