The first week of September has come and gone and the Renaissance IPO Calendar is beginning to fill up; there were 10 launches, with three companies seeking billion-dollar valuations. Seven companies submitted initial filings, one of which then entered the public market, too.
BELLUS Health (BLU), a Phase 2 biotech based in Quebec, filed, set terms, and priced an upsized $70 million US IPO. The biotech was able to achieve the fast turnaround because it was already listed in Canada. BELLUS Health is developing an oral small molecule therapy for chronic cough, and in July 2019, the company enrolled its first patient in an ongoing Phase 2 clinical trial. BELLUS Health finished the week up 2%.
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Huize Holding (HUIZ), which operates an online insurance platform in China, filed for a $150 million US IPO. A play on the shift to online, Huize's platform offers over 1,000 life, health, and property and casualty insurance products underwritten by its insurer partners. The company’s revenue more than doubled to $63 million in the 1H19.
Georgia bank MetroCity Bankshares (MCBS), which operates 19 branches mainly in Asian-American communities in the Eastern US and Texas, filed for a $40 million Nasdaq uplisting from the OTC (MCBS).
Four biotechs filed for IPOs. Swiss oncology biotech ADC Therapeutics SA (ADCT) filed for a $150 million US IPO. Frequency Therapeutics (FREQ), which is developing therapies for degenerative diseases like sensorineural hearing loss and multiple sclerosis, and Vir Biotechnology (VIR), which is developing immunologic therapies for infectious diseases, both filed to raise $100 million. Phase 3 cancer biotech Aprea Therapeutics (APRE) filed for an $86 million IPO.
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In other news, The We Company’s (WE) impending IPO may be losing steam. The company hasn’t launched yet, but it has reportedly already slashed its valuation in half. Last valued by SoftBank at $47 billion, The We Company is now said to be considering seeking a valuation closer to $20 billion with its IPO. In the wake of Uber’s and Lyft’s IPO flops, investors may not be as eager to jump on The We Company’s deal; its massive losses and “tech company” valuation draw clear parallels with the rideshare giants. The company filed an amendment this week, disclosing updated financial and membership metrics, as well as plans to add Harvard professor and former Uber SVP Frances Frei to its board of directors.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/29/19, the Renaissance IPO Index was up 34.4% year-to-date, while the S&P 500 had a gain of 20.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 13.1% year-to-date, while the ACWX was up 11.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank Corp.
The article US IPO Weekly Recap: The fall IPO market is looking up as 10 companies launch in a 1-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.
