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US IPO Week Ahead: 2 IPOs in the first week of June; more launches expected

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It's a slow start to the typically-active month of June, but that should change soon. Two companies are targeting a combined $158 million in the week ahead. Deals include Taiwan-based live streaming company M17 Entertainment and gene therapy biotech MeiraGTx.

U.S. IPO Calendar
IssuerBusiness Deal SizeMarket Cap Price RangeShares Filed TopBookrunners
M17 Entertainment ( YQ )Taipei, Taiwan $83M$412M $10 - $127,511,000 CitiDeutsche Bank
Taiwan-based live music streaming platform and dating app.
MeiraGTx ( MGTX )New York, NY $75M$423M $14 - $165,000,000 BofA MLBarclays
Developing gene therapies for disorders of the eye and salivary gland.

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M17 Entertainment ( YQ ), which operates a live streaming platform in developed Asia, aims to raise $83 million at a $412 million valuation. The Taiwan-based company grew revenue 223% y/y to $38 million in the 1Q18 and operates in the fast-growing pure-play live streaming market, which is estimated to expand at a 47% CAGR through 2022. While losses are high due to low gross margins and high marketing costs, Asian streaming and internet peers have traded well recently. Recent IPOs HUYA ( HUYA ), iQIYI (IQ) and Bilibili (BILI) are up an average of more than 80% from their offer prices.

MeiraGTx ( MGTX ), which is developing gene therapies for eye and salivary gland disorders, is targeting $75 million at a valuation of $423 million. The biotech has three candidates in Phase 1/2 trials and expects another to enter trials in early 2019. If the company is able to replicate the safety and efficacy of Spark Therapeutics' (ONCE) recently-approved drug Luxturna, it will be able to begin pivotal trials by late 2019. While MeiraGTx is still early stage and will require additional funding to reach commercialization, the deal is supported by strong insider buying. Backed by 2016 IPO Kadmon (KDMN), insiders have indicated on $40 million (53% of the deal) on the IPO.

Launches expected in early June

As June kicks off with a full pipeline, there are several notable deals that could launch in the week ahead. Potential launches include cloud-based software provider Avalara (AVLR), wealth manager Focus Financial Partners (FOCS), power plant maintenance provider Charah Solutions (CHRA), Chinese tutoring service Puxin (NEW), BJ's Wholesale Club (BJ) and a number of biotechs.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 5.6% year-to-date, while the S&P 500 is up 2.3%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Spotify (SPOT) and US Foods (USFD). The Renaissance International IPO Index is down -1.7% year-to-date, while the ACWX is down -1.1%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland .

The article US IPO Week Ahead: 2 IPOs in the first week of June; more launches expected 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.


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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