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US IPO Weekly Recap: Another billion-dollar IPO filing as activity prepares to pick up


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The lull is over. The annual February pause in IPO activity spilled into March this year, but 2018's record-breaking start now looks ready to resume. Another billion-dollar IPO joined the pipeline .

One IPO priced this week, the first in almost a month. AI-based biotech BioXcel Therapeutics priced at the low end and finished flat at the offer price. Three IPOs and one SPAC are scheduled for the week ahead , including tech unicorn Zscaler .

1 IPO During the Week of March 5th, 2018
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 03/09
BioXcel Therapeutics ( BTAI )$60M$197M-8%+0%+0%
Developing new uses of drugs to treat neurological disorders and cancer.



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Artificial Intelligence smarts investors as biotech finishes flat
BioXcel Therapeutics ( BTAI ) priced at the low end of its range to raise $60 million. The newly-formed biotech licenses AI from its parent to identify new uses for existing drugs. But that is an unproven technology, and its trials are all early stage. Based on recent IPOs, investors appear more interested in breakthroughs in gene therapy and immunotherapy.

For intelligence that's anything but artificial, institutional investors rely on Renaissance Capital's IPO research platform, IPO Intelligence .

It's getting better all the time
Markets raced higher this past week. The Renaissance IPO Index surged 4.0% while the S&P 500 gained 3.5%.
The VIX Volatility Index hit a one-month low. making the current e a very good time to go public. The 2018 US IPO class has an average return of 21%, led by three biotechs. The year's two tech IPOs (PAGS, CDLX) also have strong gains.

IPO Filings update: DirecTV Latin America files

Two companies submitted initial filings this past week. AT&T's Latin American DirecTV business Vrio ( VRIO ) filed for a US IPO that we estimate could raise $1.5 billion. The company booked $5.6 billion in 2017 sales, up 11% from the prior year, with a 22% EBITDA margin. In addition, a small California bank, OP Bancorp ( OPBK ), filed to raise $20 million.

2 Filings During the Week of March 5th, 2018
Issuer
Business
Deal
Size
SectorLead
Underwriter
Vrio ( VRIO )$1,500MConsumer DiscretionaryGoldman
AT&T spin-off of its Latin American DirecTV satellite TV service.
OP Bancorp ( OPBK )$20MFinancialsKBW
California commercial bank primarily serving Korean-American communities.



IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has returned 6.1% year-to-date and the S&P 500 is up 4.2 % . Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Snap (SNAP) and US Foods  (USFD). The Renaissance International IPO Index is up 4.4% year-to-date, while the ACWX is down 1.6%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland .



The article US IPO Weekly Recap: Another billion-dollar IPO filing as activity prepares to pick up 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, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: News Headlines , IPOs
Referenced Symbols: IPO , IPOS , BTAI , VRIO , OPBK



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