Ridesharing giant Uber ( UBER ) made its debut this week, raising $8.1 billion dollars at a market cap of $82 billion, making it the largest US IPO since Alibaba went public in 2014. Uber priced its IPO at $45, 4% below the midpoint of the $44 to $50 range, and opened on the NYSE on Friday at $42 per share. It ended its first day of trading down 8%, among the worst first day performances of a company worth more than $10 billion at its IPO.
Parsons ( PSN ) raised $500 million at a market cap of $2.6 billion. It traded up 11% on its first day and ended the week up 15% from its IPO. The company, which proves technology-driven defense, intelligence, and infrastructure solutions, has strong revenue visibility on the back of its large government contracts and strong free cash flow.
HeadHunter Group ( HHR ), a Russian job recruitment site, priced its IPO at the high end of the range, raising $220 million at a market cap of $675 million. It popped 17% on its first day and finished the week up 24% from its IPO.
Mayville Engineering (MEC) raised $106 million at a $335 million market cap. After pricing its IPO below the range, the company traded relatively flat, dropping only 3% on its first day, and remaining there by the end of the week.
Jiayin Group (JFIN), a Chinese online lending marketplace, was the second best performer of the week, popping 54% after pricing its IPO 9% below the midpoint of its proposed range.
Five biotechs priced this week and had extremely mixed trading. Cortexyme (CRTX), an Alzheimers biotech, jumped 93% on its first day, making it the best performing biotech of the year by first day performance, while Axcella Health (AXLA) and Trevi Therapeutics (TRVI) dropped 31% and 21% respectively, making them the two worst performing biotechs of the year by first day performance and top five worst performing among all IPOS.
Three SPACS also IPO'd this week, raising a total of $725 million. 21 SPACs have gone public this year raising a total of $4.4 billion.
Only three companies filed this week, including GSX Techedu (GSX), a Chinese K-12 online after-school tutoring company, Mowhawk (MWK), an AI-driven consumer products company, and another SPAC, GigCapital2 (GIX.U).
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| 15 IPOs During the Week of May 6th, 2019 |
|Market Cap |
|Price vs. |
|First Day |
| Jiayin Group (JFIN) ||$37M ||$562M ||-9% ||+54% ||+54% |
| Chinese online lending marketplace. |
| Cortexyme (CRTX) ||$75M ||$476M ||0% ||+93% ||+40% |
| Developing a novel therapy for Alzheimer's disease using a microbe inhibitor. |
| NextCure (NXTC) ||$75M ||$350M ||0% ||+33% ||+30% |
| Clinical-stage biotech developing next-gen cancer immunotherapies. |
| HeadHunter Group ( HHR ) ||$220M ||$675M ||10% ||+17% ||+24% |
| Online job recruitment platform in Russia. |
| Milestone Pharmaceuticals (MIST) ||$83M ||$385M ||0% ||+2% ||+20% |
| Phase 3 biotech developing therapies for heart rate conditions. |
| Parsons ( PSN ) ||$500M ||$2,610M ||0% ||+11% ||+15% |
| Provides technology-driven defense, intelligence, and infrastructure solutions. |
| South Plains Financial (SPFI) ||$59M ||$306M ||-5% ||+1% ||+3% |
| West Texas commercial bank with 21 full-service locations. |
| Health Sciences Acq. (HSACU) ||$100M ||$125M ||0% ||+3% ||+3% |
| Blank check company formed by RTW Investments to acquire a biopharma or medical technology business. |
| Landcadia Holdings II (LCAHU) ||$275M ||$338M ||0% ||+0% ||+0% |
| The second blank check company formed by the CEOs of Landry's and Jefferies to acquire an entertainment business. |
| Diamond Eagle Acquisition (DEACU) ||$350M ||$438M ||0% ||+0% ||+0% |
| Fifth blank check company formed by entertainment veteran Jeff Sagansky. |
| Sonim (SONM) ||$39M ||$231M ||-21% ||+0% ||+0% |
| Makes rugged mobile phones and accessories for industrial and public workers. |
| Mayville Engineering (MEC) ||$106M ||$335M ||-15% ||-3% ||-3% |
| Manufactures components for commercial and industrial vehicle OEMs. |
| Uber ( UBER ) ||$8,100M ||$82,020M ||-4% ||-8% ||-8% |
| Operates the world's largest on-demand ridesharing network. |
| Trevi Therapeutics (TRVI) ||$55M ||$184M ||-33% ||-21% ||-17% |
| Developing an extended-release version of an opioid for new indications. |
| Axcella Health (AXLA) ||$71M ||$519M ||-5% ||-31% ||-30% |
| Developing amino acid-based therapies to treat liver and other diseases. |
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| 3 Filings During the Week of May 6th, 2019 |
|Sector ||Lead |
| Mohawk (MWK) ||$58M ||Consumer Discretionary ||Roth Cap. |
| Sells consumer products based on market data gathered using its AI platform. |
| GigCapital2 (GIX.U) ||$130M ||SPAC ||EarlyBird |
| Blank check company formed by semiconductor veteran Avi Katz to acquire a TMT business. |
| GSX Techedu (GSX) ||$220M ||Consumer Discretionary ||Credit Suisse |
| Provides K-12 online after-school tutoring in China. |
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/9/19, the Renaissance IPO Index was up 33.2% year-to-date, while the S&P 500 had a gain of 15.3%. Renaissance Capital's IPO ETF ( IPO
) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (VICI). The Renaissance International IPO Index was up 11.0% year-to-date, while the ACWX was up 9.7%. Renaissance Capital's International IPO ETF ( IPOS
) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
The article US IPO Weekly Recap: Uber falls 8% in a disappointing debut
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.