Six deals are on the IPO calendar looking to raise a combined $1.0 billion during the week of December 15, 2014. Half of the deals are biotech IPOs, including the largest of the year by market cap (Juno Therapeutics; $1.5 billion). Following last week’s surge of six technology IPOs, none are on the calendar this week. However, OnDeck Capital (ONDK) is closely related to one of last week’s best performing tech IPOs, LendingClub (+65% return).
On Deck up to bat
Both OnDeck and LendingClub offer online lending platforms that offer convenient, competitively priced loans, with OnDeck focusing on small businesses and LendingClub primarily targeting consumers. However, unlike LendingClub, which takes fees as an intermediary, OnDeck holds loans and bears credit risk. Its loans are mostly for under $100,000 and are fully amortizing over 3 to 24 months. Originations on its platform grew 156% to $313 million in the third quarter.
Three biotechs look to go public
Juno Therapeutics (JUNO) is a close peer of Kite Pharma (KITE), which is up more than 150% from its IPO price. Both companies are developing immunotherapies based on CAR T-cells. Two of Juno’s three lead drug candidates appear highly promising, achieving greater than 80% complete remission rates in patients with leukemia in Phase 1. The company has raised $314 million since being formed in August 2013.
Bellicum Pharmaceuticals (BLCM) is looking to address the toxicity and potency issues associated with cellular immunotherapy by engineering T-cells that can be turned on or off by administering a drug. Its lead candidate (BPX-501), which allows physicians to eliminate harmful T-cells in patients that develop graft vs. host disease (a common complication of bone marrow transplants), is in Phase 1/2 trials with top-line results expected in the 2H15.
The third scheduled biotech IPO, S1 Biopharma, is a carryover from November. Since first setting terms, the company has decreased the number of shares offered and added warrants to the deal. It is developing a combination of existing drugs for female sexual dysfunction.
Week’s largest IPO: MLP formed by Rice Energy
Rice Midstream Partners LP (RMP) is being formed by recent IPO Rice Energy to own 83 miles of high-pressure pipelines and related compression assets in southwestern Pennsylvania. At the midpoint, the MLP would offer a initial yield of 3.8%.
Longstanding Louisiana bank seeks $91 million
First Guaranty Bancshares (FGBI), a Louisiana bank with $1.5 billion in assets, has been operating since the Great Depression. It was recapitalized in 1993 and has since grown from six to 21 branches. Its loan portfolio is comprised of non-farm non-residential real estate (45%), residential real estate (15%) and non-real estate commercial and industrial (23%).
| Renaissance Capital's IPO Calendar - Week of 12/15/2014 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Lead Manager(s) |
| Rice Midstream Partners LP Canonsburg, PA |
RMP NYSE |
$500 | $19.00 - $21.00 25,000,000 |
Barclays Citi Wells Fargo Securities |
| Rice Energy-backed MLP with natural gas gathering pipelines in the Marcellus. | ||||
| On Deck Capital New York, NY |
ONDK NYSE |
$170 | $16.00 - $18.00 10,000,000 |
Morgan Stanley BofA Merrill Lynch J.P. Morgan |
| Has originated over $1 billion in small business loans through its OnDeck online platform. | ||||
| Juno Therapeutics Seattle, WA |
JUNO NASDAQ |
$153 | $15.00 - $18.00 9,250,000 |
Morgan Stanley J.P. Morgan Goldman Sachs |
| Developing immunotherapies for lymphomas, leukemias and other cancers. | ||||
| Bellicum Pharmaceuticals Houston, TX |
BLCM NASDAQ |
$100 | $15.00 - $17.00 6,250,000 |
Jefferies & Co. Citi Piper Jaffray |
| Developing adjunct cancer immunotherapies based on a conditionally responsive platform. | ||||
| First Guaranty Bancshares Hammond, LA |
FGBI NASDAQ |
$91 | $19.00 - $21.00 4,571,428 |
Raymond James |
| Louisiana bank with 21 branches and $1.5 billion in assets. | ||||
| S1 Biopharma New York, NY |
SXB NASDAQ |
$23 | $12.00 - $14.00 1,750,000 |
MLV & Co |
| Developing a combined therapy of existing drugs for female sexual dysfunction. | ||||
IPO Pipeline update
There are 109 IPOs in the pipeline seeking to raise $20.0 billion. No companies submitted initial filings last week.
Recent IPOs and YTD IPO trends
Last week, 9 IPOs raised $2.3 billion, bringing the year's total to 271 IPOs with $84.2 billion in proceeds. Hortonworks (HDP), which develops and supports open source distribution of Hadoop for enterprises, priced above the range and gained 65%. The Renaissance IPO Index, a market cap weighted basket of newly public companies that is designed to represent the US IPO market, has gained 4% year-to-date. Renaissance Capital's IPO ETF tracks the index, and its top holdings include Alibaba (BABA), Zoetis (ZTS), Twitter (TWTR), Hilton (HLT) and Workday (WDAY).
