Two IPOs priced in the first week of June; only one has started trading
Four companies added to the calendar (including two SPACs)
| 2 IPOs During the Week of June 4th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 06/08 |
| MeiraGTx (MGTX) | $75M | $423M | 0% | +0% | +0% |
| Developing gene therapies for disorders of the eye and salivary gland. | |||||
| M17 Entertainment (YQ) | $60M | $299M | -27% | n/a | +0% |
| Taiwan-based live music streaming platform and dating app. | |||||
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MeiraGTx Holdings (MGTX) raised $75 million at a $423 million valuation. Pricing at the midpoint of the $14 to $16 range, the deal was supported by strong insider buying (53% of deal size). The gene therapy biotech was spun out from Kadmon (KDMN) in 2015 and plans to initially target inherited retinal dystrophies (IRDs). If it is able to replicate the safety and efficacy of Spark Therapeutics’ (ONCE) recently-approved drug Luxturna, it will be able to begin pivotal trials for multiple candidates by late 2019.
Taiwan-based music streaming platform M17 Entertainment (YQ) raised $60 million, pricing well below the $10 to $12 range at $8 for a $299 million market cap; however, the stock has yet to begin trading. Despite the company’s high topline growth (revenue increased 223% to $38 million in the 1Q18), growth in monthly active users has remained roughly flat with the top 10 users accounting for 12% of revenue (implying an average monthly spend of nearly $150,000 per user).
| 4 Filings During the Week of June 4th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| HL Acquisitions (HCCHU) | $43M | SPAC | EarlyBird |
| Blank check company focused on acquiring a business in the hydrocarbon logistics and processing industry. | |||
| Cornerstone Management (CSCA) | $70M | Financials | ViewTrade |
| China-based private equity fund manager | |||
| New Frontier (NFC.U) | $200M | SPAC | Credit Suisse |
| Chinese blank check company formed to acquire a healthcare, technology or education business. | |||
| Tricida (TCDA) | $150M | Health Care | Goldman |
| Late-stage biotech targeting conditions associated with chronic kidney disease. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 8.5% year-to-date, while the S&P 500 is up 3.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and US Foods (USFD). The Renaissance International IPO Index is down -1.4% year-to-date, while the ACWX is down -0.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.
