The third quarter finished with 12 IPOs raising $1.2 billion, tied for the most active week of the year. Returns varied, but the group averaged a gain of just 1.0%.
Not surprising, SurveyMonkey (SVMK) was the week's top performer, finishing with a 34% gain. Brazilian education company Arco Platform (ARCO) came in a close second, up 30%. Both companies combined growth and profitability.
Aside from those two, performance this week was unimpressive. None of the six early-stage health care IPOs did well, with returns ranging from -28% to 7%. The three China-based offerings also slumped: returns ranged from -21% to 0%.
Of the quarter's 52 IPOs, four had a first-day return below -5%, three of which were this past week. Antibiotic biotech Entasis Therapeutics (ETTX) plummeted -29%, the year's worst first-day return, and the biggest drop for a biotech IPO in 16 years. China-based app developer CooTek (CTK) fell -21%, the year's worst for a non-biotech. Urological biotech Urovant Sciences (UROV) fell -17%.
This week we published our 3Q18 Review, currently only available to IPO Pro subscribers.
| 12 IPOs During the Week of September 24th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 09/28 |
| SurveyMonkey (SVMK) | $180M | $1,565M | 20% | +44% | +34% |
| Operates a freemium online survey service. | |||||
| Arco Platform (ARCE) | $194M | $850M | 6% | +34% | +30% |
| Provides turnkey curriculum solutions to private schools in Brazil. | |||||
| Ra Medical Systems (RMED) | $66M | $229M | 13% | +18% | +7% |
| Commercializing excimer lasers used to treat dermatological and vascular diseases. | |||||
| Arvinas (ARVN) | $120M | $512M | 7% | +0% | +5% |
| Preclinical biotech developing protein degradation therapies for advanced cancers. | |||||
| Capital Bancorp (CBNK) | $28M | $170M | -7% | +2% | +2% |
| Community bank serving the Baltimore and Washington, DC MSAs. | |||||
| LAIX (LAIX) | $72M | $661M | 0% | +1% | +0% |
| Operates Liulishuo, an AI-powered English language learning platform in China. | |||||
| Sutro Biopharma (STRO) | $85M | $347M | 0% | +1% | +0% |
| Phase 1 biotech developing next-generation immuno-oncology therapies. | |||||
| Viomi Technology (VIOT) | $103M | $658M | -10% | +1% | +0% |
| Xiaomi-backed seller of internet-connected home appliances. | |||||
| Gritstone Oncology (GRTS) | $100M | $459M | 7% | -5% | -5% |
| Biotech developing personalized and off-the-shelf cancer immunotherapies. | |||||
| Urovant Sciences (UROV) | $140M | $444M | -7% | -17% | -14% |
| Phase 3 biotech developing an acquired oral therapy for overactive bladder. | |||||
| CooTek (CTK) | $52M | $798M | -8% | -21% | -21% |
| Provides mobile keyboard software and other mobile apps. | |||||
| Entasis Therapeutics (ETTX) | $75M | $208M | -12% | -29% | -27% |
| Phase 2 biotech developing therapies for multi-drug resistant bacteria. | |||||
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| 9 Filings During the Week of September 24th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Arog Pharmaceuticals (AROG) | $75M | Health Care | Citi |
| Late-stage biotech developing oral small molecule kinase inhibitors for cancer. | |||
| Gamida Cell (GMDA) | $69M | Health Care | BMO |
| Phase 3 biotech developing therapies for hematologic malignancies. | |||
| NGM Biopharmaceuticals (NGM) | $75M | Health Care | Goldman |
| Phase 2 biotech developing therapies for NASH and Type 2 Diabetes. | |||
| Revolve (RVLV) | $100M | Technology | Morgan Stanley |
| Online fashion retailer with over 500 women's and men's brands. | |||
| Samoyed (SMY) | $80M | Technology | Morgan Stanley |
| Operates an online lending platform in China for credit card balance transfers. | |||
| YETI Holdings (YETI) | $300M | Consumer Discretionary | BofA ML |
| Sells high-end YETI brand coolers, drinkware and outdoor gear. | |||
| LogicBio Therapeutics (LOGC) | $86M | Health Care | Jefferies |
| Preclinical gene editing biotech developing therapies to treat rare diseases. | |||
| Valtech (VTEC) | $100M | Technology | JP Morgan |
| Provides outsourced enterprise IT development services. | |||
| Niu Technologies (NIU) | $150M | Consumer Discretionary | Credit Suisse |
| China's largest producer of lithium-ion electric scooters. | |||
