Five IPOs raised $1.4 billion in the IPO market this past week. Silk Road Medical (SILK) took the top spot, spiking 81% on its first day. The company priced well above its range to raise $120 million, 60% more than anticipated. It follows in the footsteps of recent high-flying, high-growth medical device maker ShockWave Medical (SWAV).
Tradeweb (TW) priced above the range and offered additional shares to raise $1.1 billion, or 58% more than expected. The company boasts strong growth and free cash flow, along with a close peer (MarketAxess) that investors can peg a valuation to.
Chinese e-commerce platform Ruhnn Holding (RUHN) raised $125 million by pricing at the midpoint, before dropping 37% on its first day, the worst for a tech IPO in over 20 years. It recovered slightly by week-end, but had numerous issues (Pre-IPO Report available to IPO Intelligence clients).
Billion-dollar NASH biotech NGM Biopharmaceuticals (NGM) priced at the high end of the range but traded down. Medical food micro-cap Guardion Health Sciences (GHSI), which raised $5 million, also fell below issue. One SPAC, Latin America-focused Replay Acquisition (RPLA.U) raised $250 million.
| 5 IPOs and 1 SPAC During the Week of April 1st, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 04/05 |
| Silk Road Medical (SILK) | $120M | $675M | 25% | +81% | +79% |
| Sells medical devices to treat carotid artery disease. | |||||
| Tradeweb Markets (TW) | $1,080M | $6,191M | 8% | +33% | +35% |
| Electronic trading platform backed by Blackstone and Thomson Reuters. | |||||
| Replay Acquisition (RPLA.U) | $250M | $313M | 0% | +1% | +1% |
| Blank check company formed to acquire a business in Argentina or Brazil. | |||||
| NGM Biopharmaceuticals (NGM) | $107M | $1,146M | 7% | -8% | -6% |
| Phase 2 biotech developing therapies for NASH and type 2 diabetes. | |||||
| Guardion Health Sciences (GHSI) | $5M | $94M | 14% | -8% | -8% |
| Sells medical food and devices for retinal diseases. | |||||
| Ruhnn Holding (RUHN) | $125M | $1,034M | 0% | -37% | -32% |
| E-commerce platform used by Chinese internet celebrities to sell fashion items. | |||||
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Six companies submitted initial filings this past week, led by recently-restructured radio giant iHeartMedia (IHRT.RC), Scientific Games spinoff SciPlay (SCPL), and small but fast-growing medical device maker TransMedics (TMDX).
| 6 Filings During the Week of April 1st, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| SciPlay (SCPL) | $200M | Consumer Discretionary | BofA ML |
| Scientific Games' social gaming unit offering casino-style mobile games. | |||
| TransMedics (TMDX) | $86M | Health Care | Morgan Stanley |
| Medical device company that provides a system for organ transplants. | |||
| Trevi Therapeutics (TRVI) | $86M | Health Care | Leerink |
| Clinical stage biotech developing therapies for neurological disorders. | |||
| Bricktown Brewery (BEER) | $17M | Consumer Discretionary | ThinkEquity |
| Oklahoma-based operator of 14 casual dining restaurants serving in-house beers. | |||
| iHeartMedia (IHRT.RC) | $1,500M | Communication Services | Goldman |
| Restructured radio station operator with the US's largest footprint. | |||
| Postal Realty Trust (PSTL) | $115M | Real Estate | Stifel |
| Recently-formed REIT that manages and leases properties to the USPS. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/4/19, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 had a gain of 15.5%. 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 11.1% year-to-date, while the ACWX was up 12.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
