As expected, no IPOs priced this past week. And thanks to the government shutdown, no IPOs launched roadshows, either. However, new IPOs entered the public pipeline, with initial filings from biotechs Alector (ALEC) and Anchiano Therapeutics (ANCN), Blackstone subprime lender Exeter Finance (XTF), and large SPAC Acamar Partners Acquisition (ACAMU). Based on recent filings, we expect the first IPOs of 2019 to be biotechs and Chinese companies, continuing last year's trend.
While IPOs underperformed in the 4Q18, they started to rebound this past week. The Renaissance IPO Index is up 8.8% since the start of the year, compared to 3.7% for the S&P 500. For the first time in over a month, the VIX Volatility Index fell below 20. More weeks like this could quickly re-open the IPO window.
Alector was the week's big biotech filing, aiming to raise $150 million. Backed by Polaris and OrbiMed, the company has over $300 million in cash, and is reportedly targeting a $1+ billion valuation. It uses a novel approach to target neurodegeneration, and is in Phase 1 trials for a form of dementia and Alzheimer's.
Exeter Finance, which filed to raise $100 million is also notable. Blackstone bought the subprime auto lender in 2011, and in the 9mo18 it posted strong revenue and earnings growth.
|7 Filings During the Week of January 7th, 2019|
|Cirius Therapeutics (CSTX)||$86M||Health Care||Citi|
|Developing therapies for the treatment of liver and metabolic diseases.|
|HeZhong International (HZ)||$6M||Technology||ViewTrade|
|Operates a peer-to-peer lending marketplace in China.|
|Kaleido Biosciences (KLDO)||$100M||Health Care||Goldman|
|Phase 2 biotech developing microbiome therapies to treat rare genetic disorders.|
|Acamar Partners Acq. (ACAMU)||$300M||SPAC||Goldman|
|Blank check company led by the Executive Chairman of travel retailer Dufry.|
|Exeter Finance (XTF)||$100M||Financials||Citi|
|Full-service subprime auto lender backed by Blackstone.|
|Alector (ALEC)||$150M||Health Care||Morgan Stanley|
|Phase 1 biotech developing therapies for neurodegeneration.|
|Anchiano Therapeutics (ANCN)||$35M||Health Care||Oppenheimer|
|Phase 3 biotech developing therapies for early-stage bladder cancer.|
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/10/19, the Renaissance IPO Index was up 8.8% year-to-date, while the S&P 500 had a gain of 3.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (VICI) and Spotify (SPOT). The Renaissance International IPO Index was up 2.9% year-to-date, while the ACWX was up 4.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.