IPOs

US IPO Weekly Recap: Healthcare dominates a 7 IPO week

Seven IPOs and 10 SPACs went public this past week. The IPO pipeline remained active, with 11 IPOs and 22 SPACs submitting initial filings.

Phase 2 biotech Kronos Bio (KRON) priced above the range to raise $250 million at a $1.1 billion market cap. The biotech is developing therapies targeting dysregulated transcription factors for leukemia and solid tumor treatment. Its lead candidate is an oral selective spleen tyrosine kinase that is expected to begin a Phase 2/3 registration trial in 2021. Kronos finished up 43%.

Oncology biotech Shattuck Labs (STTK) upsized and priced above the range to raise $202 million at a $713 million market cap. The biotech is developing novel dual-sided fusion protein therapies for cancer using their drug development platform. The company has two lead candidates that are both in Phase 1 trials, with initial data expected in the 2H21. Shattuck finished up 14%. 

Live TV sports streaming platform fuboTV (FUBO) priced mid-range to raise $183 million at a $1.4 billion market cap. Fast-growing and unprofitable, the company provides subscribers a sports-first TV streaming platform with live sporting events, as well as news and other entertainment content. FuboTV finished up 1%.

Phase 2 biotech Spruce Biosciences (SPRB) priced mid-range to raise $90 million at a $366 million market cap. The biotech is developing a novel therapy for rare endocrine disorders, starting with classic congenital adrenal hyperplasia (CAH). Its lead candidate demonstrated promising results in a Phase 2a trial, and it is currently in a Phase 2b trial for adult patients. Spruce finished up 13%.

Chinese edutainment product provider iHuman (IH) priced mid-range to raise $84 million at a $648 million market cap. The company provides integrated education products targeted at both educational organizations and individual users, and it ranked #1 in terms of paying users among online childhood edutainment providers in China. iHuman finished up 33%.
 
Commercial-stage regenerative medical product maker Aziyo Biologics (AZYO) priced mid-range to raise $50 million at a $177 million market cap. Unprofitable with high single-digit growth, the company has developed a portfolio of advanced regenerative medical products with its proprietary tissue processing platforms that are designed to be similar to natural biological material. Aziyo Biologics finished down 20%.

OTC-listed Intrusion (INTZ) raised $25 million at a $135 million market cap. Intrusion provides a variety of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. While the company has demonstrated growth and profitability on an EBITDA basis, both revenue growth and EBITDA swung negative in the 1H20. Intrusion finished up 38%.
 
10 SPACs raised $4.8 billion, led by Palihapitiya and Osborne's sixth SPAC Social Capital Hedosophia Holdings VI (IPOF.U) raising $1 billion. The pair also completed offerings for two other joint ventures: Social Capital Hedosophia Holdings V (IPOE.U), which raised $700 million, and Social Capital Hedosophia Holdings IV (IPOD.U), which raised $400 million.


17 IPOs During the Week of October 5th, 2020
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 10/09
Kronos Bio (KRON) $250M $1,107M 12% +42% +42%
Phase 2 biotech developing kinase inhibitors for leukemia and solid tumors.
Intrusion (INTZ) $25M $135M -44% +38% +38%
Provides a family of software products for enterprise security.
iHuman (IH) $84M $649M 0% +33% +33%
Provides edutainment products for children in China.
Shattuck Labs (STTK) $202M $713M 13% +14% +14%
Phase 1 biotech developing novel dual-sided fusion protein therapies for cancer.
Spruce Biosciences (SPRB) $90M $366M 0% +13% +13%
Phase 2 biotech developing a novel therapy for rare endocrine disorders.
fuboTV (FUBO) $183M $1,407M 0% +3% +1%
Offers a live TV sports-first streaming platform.
Social Hedosophia IV (IPOD.U) $400M $488M 0% n/a +0%
Fourth blank check company formed by Social Capital and Hedosophia targeting a tech business.
Social Capital V (IPOE.U) $700M $863M 0% n/a +0%
Fifth blank check company formed by Social Capital and Hedosophia targeting a tech business.
Social Capital VI (IPOF.U) $1,000M $1,250M 0% n/a +0%
Sixth blank check company formed by Social Capital and Hedosophia targeting a tech business.
TPG Pace Tech (PACE.U) $450M $563M 0% n/a +0%
Blank check company formed by TPG Pace Group targeting the tech industry.
TPG Pace Beneficial Fin. (TPGY.U) $350M $438M 0% n/a +0%
Blank check company formed by TPG Pace Group targeting a business with a strong ESG profile.
Empower (EMPW.U) $250M $313M 0% n/a +0%
Blank check company formed by MidOcean Partners targeting US consumer-facing businesses.
FirstMark Horizon (FMAC.U) $360M $435M 0% n/a +0%
Blank check company formed by FirstMark Capital targeting a US-based tech business.
Landcadia Holdings III (LCYAU) $500M $625M 0% -1% -1%
Third blank check company formed by the CEOs of Landry's and Jefferies to acquire an entertainment business.
NextGen Acquisition (NGACU) $350M $438M 0% +0% -1%
Blank check company targeting the industrial and healthcare sectors.
Montes Archimedes Acq. (MAACU) $400M $525M 0% +0% -1%
Blank check company formed by Patient Square Capital targeting the healthcare industry.
Aziyo Biologics (AZYO) $50M $177M 0% -15% -20%
Makes regenerative medical products for various tissue types.


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Twelve IPOs and twenty-two SPACs submitted initial filings. Retail loan facilitation platform Lufax (LU) filed to raise $3 billion. Mobile-based auto insurer Root (ROOT) filed to raise $800 million. Pool supplies and services provider Leslie’s (LESL) filed to raise $600 million. Fabless chip producer Allegro MicroSystems (ALGM) filed to raise $350 million. Security products provider Telos (TLS) filed to raise $242 million. Fibrosis therapy biotech Galecto (GLTO), customer acquisition service provider MediaAlpha (MAX), clinical stage biotech Atea Pharmaceuticals (AVIR), and software application provider Mavenir (MVNR) all filed to raise $100 million. Solid tumor therapy biotech SQZ Biotechnologies (SQZ) filed to raise $75 million. Sleep medical device developer Vivos Therapeutics (VVOS) filed to raise $20 million, while pain management drug biotech Virpax Therapeutics (VRPX) filed to raise $18 million. 

Daniel Och and Glenn Fuhrman’s SPAC Ajax I (AJAX.U) filed to raise $750 million. Energy SPAC Spartan Acquisition II (SPARU.RC) filed to raise $400 million. James Carpenter and Robert Mancini’s second SPAC RMG Acquisition II (RMGBU), and technology SPAC Carney Tech Acq. II (CTAQU) both filed to raise $350 million. Healthcare SPAC Healthcare Services Acq. (HCARU), HPS Investment Partner’s SPAC Altimar Acquisition (ATACU), data-centric SPAC Aequi Acquisition (ARBGU), experiential entertainment SPAC Acies Acquisition (ACACU), post-bankruptcy focused SPAC Mudrick Capital Acq. II (MUDSU), healthtech SPAC Lux Health Tech Acq. (LUXA.U), and The Gores Group’s sixth SPAC Gores Holdings VI (GHVIU) all filed to raise $300 million. 

TMT industry-focused SPAC Roman DBDR Tech Acq. (DBDRU) filed to raise $275 million. Forest Road’s SPAC Forest Road Acquisition (FRX.U) filed to raise $250 million. Sports, media and entertainment SPAC Sports Ventures Acq. (AKICU), financial services SPAC Cascade Acquisition (CAS.U), Cantor Fitzgerald’s third SPAC CF Finance III (CFACU), leisure and hospitality SPAC LCP Acquisition (LCPU), and sustainability-focused SPAC Rice Acquisition (RICEU) all filed to raise $200 million. 

Travel and transportation SPAC Thayer Ventures Acq. (TVACU) filed to raise $175 million. Healthy living SPAC Better World Acquisition (BWACU) filed to raise $125 million. Healthcare and biotech SPAC Eucrates Biomedical Acq. (EUCRU) and life science SPAC Consonance-HFW Acq. (CHFW.U) both filed to raise $100 million. 


34 Filings During the Week of October 5th, 2020
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Ajax I (AJAX.U) $750M SPAC Goldman
Blank check company formed by Och-Ziff's Daniel Och and MSD Capital's Glenn Fuhrman.
Atea Pharmaceuticals (AVIR) $100M Health Care JP Morgan
Clinical stage biotech developing therapies for COVID-19 and other viral infections.
Carney Tech Acq. II (CTAQU) $350M SPAC Morgan Stanley
Blank check company targeting the technology industry.
Consonance-HFW Acq. (CHFW.U) $100M SPAC JP Morgan
Blank check company formed by Consonance Capital targeting the life science industry.
Lux Health Tech Acq. (LUXA.U) $300M SPAC Credit Suisse
Blank check company formed by Lux Capital targeting a healthtech business.
Mudrick Capital Acq. II (MUDSU) $300M SPAC Jefferies
Second blank check company formed by distressed debt investor Jason Mudrick to acquire a post-bankruptcy business.
Spartan Acquisition II (SPARU.RC) $400M SPAC Citi
Second blank check company formed by Apollo Global Management targeting the North American energy industry.
Sports Ventures Acq. (AKICU) $200M SPAC Deutsche Bank
Blank check company targeting sports, media, and entertainment.
SQZ Biotechnologies (SQZ) $75M Health Care BofA
Phase 1 biotech developing cell therapies for solid tumors and other indications.
Virpax Pharmaceuticals (VRPX) $18M Health Care ThinkEquity
Preclinical biotech developing new pain management drug technology.
Vivos Therapeutics (VVOS) $20M Health Care Roth Cap.
Developing medical devices for sleep disordered breathing.
Forest Road Acquisition (FRX.U) $250M SPAC Cantor Fitz.
Blank check company formed by Forest Road targeting TMT businesses.
Healthcare Services Acq. (HCARU) $300M SPAC BofA
Blank check company targeting healthcare services and related industries in the US.
Thayer Ventures Acq. (TVACU) $175M SPAC Stifel
Blank check company formed by Thayer Ventures targeting the travel and transportation industries.
Altimar Acquisition (ATACU) $300M SPAC Goldman
Blank check company formed by HPS Investment Partners.
Better World Acquisition (BWACU) $125M SPAC EarlyBird
Blank check company formed by N*GEN Partners targeting a healthy living business with a strong ESG profile.
Cascade Acquisition (CAS.U) $200M SPAC Credit Suisse
Blank check company targeting the financial services industry.
CF Finance III (CFACU) $200M SPAC Cantor Fitz.
Third blank check company formed by Cantor Fitzgerald.
Galecto (GLTO) $100M Health Care BofA
Phase 2 biotech developing therapeutics for fibrosis and related diseases.
Leslie's (LESL) $600M Consumer Discretionary Goldman
Leading US provider of pool supplies and services with over 930 retail locations.
Lufax (LU) $3,000M Technology Goldman
Provides a leading platform for retail loan facilitation in China.
Aequi Acquisition (ARBGU) $300M SPAC RBC
Blank check company targeting data-centric, growth-oriented companies with established business models.
Allegro MicroSystems (ALGM) $350M Technology Barclays
Fabless chip producer for auto and industrial markets being spun out of Sanken.
Eucrates Biomedical Acq. (EUCRU) $100M SPAC Stifel
Blank check company formed by Vedanta Management targeting data-driven healthcare and biotech businesses.
LCP Acquisition (LCPU) $200M SPAC B. Riley FBR
Blank check company formed by The LCP Group targeting the leisure and hospitality industry.
Mavenir (MVNR) $100M Technology Morgan Stanley
Provides cloud-native software applications for mobile networks.
Rice Acquisition (RICEU) $200M SPAC Barclays
Blank check company formed by Rice Investment Group targeting energy transition and the sustainability arena.
RMG Acquisition II (RMGBU) $350M SPAC BofA
Second blank check company formed by Riverside's James Carpenter and former Carlyle executive Robert Mancini.
Telos (TLS) $242M Technology B. Riley FBR
Provides software-based security products and services.
Acies Acquisition (ACACU) $300M SPAC Morgan Stanley
Blank check company targeting live, location-based, and mobile experiential entertainment.
Gores Holdings VI (GHVIU) $300M SPAC Deutsche Bank
Sixth blank check company formed by The Gores Group.
MediaAlpha (MAX) $100M Technology JP Morgan
Provides technology-based customer acquisition services for insurance companies.
Roman DBDR Tech Acq. (DBDRU) $275M SPAC B. Riley FBR
Blank check company targeting the TMT industries.
Root (ROOT) $800M Financials Goldman
Mobile-based auto insurer.


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IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/8/20, the Renaissance IPO Index was up 77.2% year-to-date, while the S&P 500 was up 6.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 36.2% year-to-date, while the ACWX was down 2.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.

The article US IPO Weekly Recap: Healthcare dominates a 7 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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