The second week after the SEC opened, we saw a number of launches and two billion dollar biotechs, Alector ( ALEC ) and Gossamer Bio ( GOSS ) , price their IPOs. Another biotech, Harpoon Therapeutics ( HARP ) , along with three SPACs, also priced their IPOS.
Alector , a Phase 1 biotech developing therapies for neurodegeneration, raised $176 million in its IPO on Wednesday, commanding a fully diluted market value of $1.4 billion, but ended its first day of trading down 5% and ended the week down 14%. Alector's poor performance rivaled that of another billion dollar biotech, Moderna (MRNA), which IPO'd in late 2018 with a fully diluted market value of $8.1 billion, and ended its first day down 19%.
Harpoon Therapeutics , a Phase 1 biotech developing T cell immunotherapies for various cancers, raised $76 million in its IPO on Thursday. It also broke issue on its first day of trading, ending the day down 3.6%.
Gossamer Bio , which is developing in-licensed imunotherapies for asthma and other indications, took a different path than its billion dollar biotech peers, ending its first trading day up 12.1%, after raising $276 million at a market value of $1.1 billion in an upsized IPO on Thursday.
Also notable this week, workplace messaging platform Slack said that it plans to go public, but does not plan to do a traditional IPO, instead opting to go public via a direct listing. Spotify (SPOT), the worlds largest music streaming subscription service, did a direct listing on the NYSE at a price of $132 in early 2018 and traded up 12.9% on its first day. It will be interesting to see if other big names also decide to take this route in the future.
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| 6 IPOs During the Week of February 4th, 2019 |
|Market Cap |
|Price vs. |
|First Day |
| Gossamer Bio ( GOSS ) ||$276M ||$1,056M ||0% ||+12% ||+12% |
| Developing in-licensed immunotherapies for asthma and other indications. |
| Wealthbridge Acquisition (HHHHU) ||$50M ||$65M ||0% ||+0% ||+0% |
| Blank check company targeting the air transportation industry in China. |
| Monocle Acquisition (MNCLU) ||$150M ||$194M ||0% ||+0% ||+0% |
| Blank check company formed to acquire an aerospace & defense or industrial business. |
| RMG Acquisition (RMG.U) ||$200M ||$250M ||0% ||+0% ||+0% |
| Blank check company formed to acquire a materials or energy services business. |
| Harpoon Therapeutics ( HARP ) ||$76M ||$377M ||0% ||-4% ||-4% |
| Phase 1 biotech developing T cell immunotherapies for various cancers. |
| Alector ( ALEC ) ||$176M ||$1,391M ||0% ||-5% ||-14% |
| Phase 1 biotech developing therapies for neurodegeneration. |
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| 4 Filings During the Week of February 4th, 2019 |
|Sector ||Lead |
| Avantor (VNOR.RC) ||$1,500M ||Materials ||Goldman |
| LBO'd provider of laboratory supplies and services. |
| ShockWave Medical (SWAV) ||$70M ||Health Care ||Morgan Stanley |
| Sells medical systems used in treating cardiovascular disease. |
| American Resources (AREC) ||$9M ||Energy ||Maxim |
| Kentucky-based producer of metallurgical coal. |
| Tortoise Acquisition (SHLL.U) ||$225M ||SPAC ||Barclays |
| Blank check company targeting the energy industry. |
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/7/19, the Renaissance IPO Index was up 19.3% year-to-date, while the S&P 500 had a gain of 8.1%. Renaissance Capital's IPO ETF ( IPO
) tracks the index, and top ETF holdings include VICI Properties (VICI) and Spotify (SPOT). The Renaissance International IPO Index was up 4.2% year-to-date, while the ACWX was up 7.0%. Renaissance Capital's International IPO ETF ( IPOS
) tracks the index, and top ETF holdings include SoftBank and China Tower.
The article US IPO Weekly Recap: Two billion-dollar biotechs cap a mixed week for biotech IPOs
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.