After a busy week in the IPO market, just one biotech is scheduled to go public in the week ahead.
NASH biotech 89bio (ETNB) plans to raise $85 million at a $225 million market cap. The company’s target indication represents a multi-billion-dollar market with no FDA-approved therapy; consequently, there are many other NASH-focused biotechs, most of which are later-stage. NASH biotechs as a whole have not done well, save for June IPO Akero Therapeutics (AKRO; +28% from IPO). A holdover from last week, the company delayed its offering due to a minor issue with its auditor’s disclosures to the SEC.
A few companies in the IPO pipeline could launch this week, including mortgage lender Velocity Financial (VEL), social media manager Sprout Social (SPT), and Chinese consumer debt collector YX Asset Recovery (YX.RC).
Street research for BellRing Brands (BRBR) and Innate Pharma (IPHA) is expected on Monday, and lock-up periods will be expiring for five companies: Applied Therapeutics (APLT), Postal Realty Trust (PSTL), Avantor (AVTR), Fastly (FSLY), and Luckin Coffee (LK).
*based on 11/8/19 S-1MEF
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89bio (ETNB), a Phase 1 biotech developing therapies for NASH and other metabolic diseases, plans to raise $70 million by offering 4.4 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, 89bio would command a market value of $210 million. 89bio was founded in 2018. The San Francisco, CA-based company plans to list on the Nasdaq under the symbol ETNB. BofA Securities and SVB Leerink are the joint bookrunners on the deal. Insiders intend to purchase up to $40 million of the IPO (57% of the deal).
IPO Market Snapshot
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The article US IPO Week Ahead: Just 1 biotech is on the calendar in a slow week for the IPO market originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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