Quantcast

US IPO Weekly Recap: US tech IPOs on a tear as Elastic bounds 94%


Shutterstock photo

Four IPOs raised $767 million. Even as the broader IPO market traded off, all four companies this week were positive and three popped 40% or more. Big data software provider Elastic ( ESTC ) priced well above its range and flew up 94%. With almost $200 million in sales, Elastic's 79% growth puts it in a rare echelon of software companies. Freelancer marketplace Upwork ( UPWK ) gained 40% and next-gen diagnostics company Guardant Health was up 54%. For now, the unicorns still appear to be in high demand.

Four blank check companies also completed their public offerings to raise $780 million. There have been 37 SPACs this year, surpassing the full-year 2017 (34) and already marking the biggest year since 2007.

The broader IPO market pulled back this week, particularly the high-flying tech sector. The IPO Index slumped 5.4%, compared to the S&P 500's -1.0%. As of Friday, just 53% of 2018 IPOs trade above the offer price, the lowest point since April. The VIX Volatility Index finished the week near 15, near where IPO activity starts to be impacted.

The US IPO pipeline gained its only billion-dollar deal: China's Tencent Music ( TME ) filed for a US IPO that could raise $2 billion. Other notable filings included Brazilian payments processor  StoneCo ( STNE ) and deepwater E&P EnVen Energy ( ENVN ).


8 IPOs During the Week of October 1st, 2018
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 10/05
Elastic ( ESTC ) $252M $3,165M 31% +94% +94%
Provides open-source data search and visualization software.
Guardant Health (GH) $238M $1,707M 19% +69% +54%
Makes non-invasive blood-based cancer diagnostics tests.
Upwork ( UPWK ) $187M $1,870M 36% +41% +40%
Marketplace for businesses to hire and manage remote freelancers.
Kodiak Sciences (KOD) $90M $375M -29% +2% +4%
Phase 1 biotech developing therapies for common ophthalmic diseases.
ARYA Sciences Acquisition (ARYAU) $125M $156M 0% +2% +2%
Blank check company formed by Perceptive Advisors to acquire a healthcare business.
Collier Creek (CCH.U) $400M $496M 0% +2% +2%
Blank check company led by Pinnacle Foods Chairman Roger Deromedi.
EdtechX Acquisition (EDTXU) $55M $69M 0% +0% +0%
Blank check company formed by IBIS Capital to acquire an education technology business.
ChaSerg Tech Acquisition (CTAC.U) $200M $256M 0% n/a +0%
Blank check company formed by tech veterans to acquire a technology company.


Sign up for a free trial of our premium platform, IPO Pro . Follow us on Twitter ( @IPOtweet ) and register for our updates on the IPO market.



8 Filings During the Week of October 1st, 2018
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Axonics Modulation Tech (AXNX) $86M Health Care BofA ML
Commercializing a neural implant for overactive bladder and incontinence.
Uranium Trading (UTC) $58M Materials B. Riley FBR
Newly-formed vehicle to invest in the civil uranium market.
Orchard Therapeutics (ORTX) $173M Health Care JP Morgan
Developing stem cell gene therapies for rare diseases.
EnVen Energy ( ENVN ) $300M Energy Citi
E&P focused on deepwater oil projects in the Gulf of Mexico.
Twist Bioscience (TWST) $86M Health Care JP Morgan
Manufactures synthetic genes and other DNA-based products.
Alberton Acquisition (ALACU) $100M SPAC Chardan
Hong Kong-based blank check company.
Tencent Music ( TME ) $1,000M Technology BofA ML
China's largest online music-streaming service.
StoneCo ( STNE ) $100M Technology Goldman
Brazilian cloud-based online payment processor.


Sign up for a free trial of our premium platform, IPO Pro . Follow us on Twitter ( @IPOtweet ) and register for our updates on the IPO market.

The article US IPO Weekly Recap: US tech IPOs on a tear as Elastic bounds 94% 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.

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: ESTC , UPWK , TME , STNE , ENVN



More from Renaissance Capital

Subscribe






Renaissance Capital
Contributor:

Renaissance Capital

IPOs










Research Brokers before you trade

Want to trade FX?