All eyes were on Lyft (LYFT) as it priced its IPO, along with two biotechs, Genfit (GNFT) and Precision BioSciences (DTIL), in a week that saw positive IPO returns across the board.
8i Enterprises Acquisition (JFKKU) a blank check targeting a high-growth business in Asia also priced its IPO this week.
| 4 IPOs During the Week of March 25th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 03/29 |
| Genfit (GNFT) | $135M | $770M | 0% | +9% | +18% |
| Phase 3 French biotech developing therapies for NASH. | |||||
| Precision BioSciences (DTIL) | $126M | $870M | 0% | +9% | +12% |
| Early stage biotech developing off-the-shelf CAR T cell cancer therapies. | |||||
| Lyft (LYFT) | $2,340M | $24,417M | 11% | +9% | +9% |
| Operates an on-demand ridesharing app that connects riders and drivers. | |||||
| 8i Enterprises Acq. (JFKKU) | $50M | $65M | 0% | 0% | +0% |
| Blank check company backed by 8i Capital and targeting a high-growth business in Asia. | |||||
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Lyft (LYFT) raised $2.3 billion in an upsized offering by selling 32.5 million shares at $72, the high end of the upwardly revised $70 to $72 range. The company had previously filed to offer 30.8 million shares at a range of $62 to $68. The company debuted on the Nasdaq at $86.70 (+20% from IPO) before pulling back to $78.29 by the end of the day (+8.7% from IPO), suggesting that Wall Street will be somewhat cautious on highly valued unicorns that are also highly unprofitable.
Genfit (GNFT), a Phase 3 NASH biotech that also trades on the Euronext Paris, raised $135 million at a market cap of $770 million. The company gained 9% on its first day of trading, and ended the week up 18% from its IPO. While NASH therapies have yet to be approved by the FDA, Genfit is coming to market during a time where its peers have been trading well on positive trial results.
Precision BioSciences (DTIL), an early stage cancer biotech raised $126 million at a market cap of $870 million. The company gained 9% on its first day of trading, and ended the week up 12% from its IPO.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/28/19, the Renaissance IPO Index was up 30.4% year-to-date, while the S&P 500 had a gain of 12.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (VICI). The Renaissance International IPO Index was up 7.5% year-to-date, while the ACWX was up 9.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
