IPOs

US IPO Week Ahead: Just 1 biotech is on the calendar in a slow week for the IPO market

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
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/7/19, the Renaissance IPO Index was up 25.5% year-to-date, while the S&P 500 had a gain of 23.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and VICI Properties (VICI). The Renaissance International IPO Index was up 19.2% year-to-date, while the ACWX was up 17.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
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.

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.

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