IPOs

US IPO Weekly Recap: Biotechs and SPACs ride the summer wave in a 4 IPO week

Three drug developers and a medical imaging company went public this past week, joined by eight SPACs.

Preclinical protein degradation biotech Kymera Therapeutics (KYMR) upsized and priced above the range to raise $174 million at a $938 million market cap. The company is very early stage, with its first IND not expected until the 1H21. However, protein degradation has attracted interest from big pharmas, and the company has potentially lucrative collaborations with Sanofi and Vertex Pharmaceuticals. Kymera finished up 66%.

Commercial pharma Harmony Biosciences Holdings (HRMY) upsized and priced above the range to raise $128 million at a $1.6 billion market cap. The company’s sole marketed product, WAKIX, is the first and only approved product for adult narcolepsy that is not scheduled as a controlled substance. Though it has achieved 6% penetration of treated narcolepsy patients in the US, generic versions of a competitor’s drug could cause pricing pressure in the future. Harmony finished up 50%.

Israel-based Nano-X Imaging (NNOX) upsized and priced at the high end to raise $165 million at a $903 million market cap. The company is developing low-cost digital CT-like scan systems based on its novel X-ray technology, addressing the $10+ billion X-ray imaging market. It has yet to launch commercialization, though its Nanox.Arc device is expected to roll out in the 2H21, pending FDA approval. Nano-X finished up 21%.

Single-domain antibody biotech Inhibrx (INBX) upsized and priced at the midpoint to raise $119 million to $637 million market cap. In its second IPO attempt, the company came back with preliminary efficacy data for its lead candidate, INBRX-109, which showed stable disease and partial responses. However, there was one death in its current Phase 1 trial, and the company will need additional funding to continue development. Inhibrx finished up 20%.

The week’s eight SPAC IPOs raised $3.3 billion, led by Bill Foley’s Foley Trasimene Acquisition II (BFT.U), which completed a $1.3 billion upsized offering in the third-largest SPAC ever.

12 IPOs During the Week of August 17th, 2020
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 08/21
Kymera Therapeutics (KYMR) $174M $938M 18% +66% +66%
Preclinical biotech developing protein degraders for oncology and immunology.
Harmony Biosciences (HRMY) $128M $1,570M 12% +54% +50%
Markets a therapy for adult narcolepsy in the US.
Nano-X Imaging (NNOX) $165M $903M 6% +21% +21%
Developing affordable medical imaging systems.
Inhibrx (INBX) $119M $637M 0% +21% +20%
Phase 1 biotech developing single domain antibodies for cancer and rare diseases.
one (AONE.U) $200M $250M 0% +1% +1%
Blank check company led by the co-founder of Eventbrite and other industry veterans targeting the tech sector.
Horizon Acquisition (HZAC.U) $500M $625M 0% +0% +0%
Blank check company formed by Todd Boehly of Eldridge Industries targeting a financial services business.
Foley Trasimene Acq. II (BFT.U) $1,300M $1,600M 0% +0% +0%
Fourth blank check company formed by financial services veteran Bill Foley.
Northern Genesis Acq. (NGA.U) $300M $375M 0% +0% +0%
Blank check company targeting an environmentally sustainable business.
Star Peak Energy (STPK.U) $350M $438M 0% +0% +0%
Blank check company formed by Magnetar Capital targeting the energy industry.
Forum Merger III (FIIIU) $250M $320M 0% +0% +0%
Third blank check company formed by SPAC veterans David Boris and Marshall Kiev.
FAST Acquisition (FST.U) $200M $250M 0% -1% -1%
Blank check company formed by &vest and entrepreneur Sandy Beall targeting a restaurant or hospitality business.
Colonnade Acquisition (CLA.U) $200M $250M 0% -1% -1%
Blank check company targeting the energy, real estate, and agricultural industries.


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Six IPOs and five SPACs submitted initial filings. Infrastructure software provider Bentley Systems (BSY) filed for an estimated $800 million IPO. Hemodialysis device manufacture Outset Medical (OM) and gaming hardware manufacturer Corsair Gaming (CRSR) both filed to raise $100 million. Canadian EV manufacturer GreenPower Motor (GP) filed to raise $35 million, Chinese medicine manufacturer Universe Pharmaceuticals (UPC) filed to raise $30 million, and learning software provider Amesite (AMST) filed to raise $16 million.

Casper CEO Philip Krim’s tech SPAC Tailwind Acquisition (TWND.U) and activist hedge fund Starboard Value’s SPAC Starboard Value Acquisition (SVACU) both filed to raise $300 million. Investment veteran Nicholas Singer’s SPAC OTR Acquisition (OTRAU) filed to raise $250 million. Software SPAC Software Acquisition Group II (SAIIU) and emerging growth SPAC Growth Capital Acquisition (GCACU) both filed to raise $150 million.

11 Filings During the Week of August 17th, 2020
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Bentley Systems (BSY) $800M Technology Goldman
Provides software for construction and infrastructure projects.
Corsair Gaming (CRSR) $100M Technology Goldman
Designs and supplies personal computer and gaming hardware components.
Outset Medical (OM) $100M Health Care BofA
Provides a hemodialysis system for kidney diseases.
Software Acquisition II (SAIIU) $150M SPAC B. Riley FBR
Second blank check company led by former Ooyala officers targeting a software company.
GreenPower Motor (GP) $35M Industrials B. Riley FBR
Canadian manufacturer of battery-electric commercial vehicles.
Growth Capital Acq. (GCACU) $150M SPAC Maxim
Blank check company formed by SPAC veterans targeting an emerging growth company.
OTR Acquisition (OTRAU) $250M SPAC Maxim
Blank check company formed by the co-founder of Cyrus Capital and Standard General.
Starboard Value Acq. (SVACU) $300M SPAC UBS
Blank check company formed by Starboard Value.
Tailwind Acquisition (TWND.U) $300M SPAC Jefferies
Blank check company formed by Casper CEO Philip Krim targeting a technology business.
Amesite (AMST) $16M Technology Laidlaw (UK)
Provides an AI-driven platform for developing online learning products.
Universe Pharmaceuticals (UPC) $30M Health Care Univest Securities
Chinese pharmaceutical specializing in traditional Chinese medicine derivatives.


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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/20/20, the Renaissance IPO Index was up 48.4% year-to-date, while the S&P 500 was up 4.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Pinduoduo (PDD). The Renaissance International IPO Index was up 31.6% year-to-date, while the ACWX was down 4.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
The article US IPO Weekly Recap: Biotechs and SPACs ride the summer wave in a 4 IPO week 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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