Ridesharing giant Uber (UBER) made its debut this week, raising $8.1 billion dollars at a market cap of $82 billion, making it the largest US IPO since Alibaba went public in 2014. Uber priced its IPO at $45, 4% below the midpoint of the $44 to $50 range, and opened on the NYSE on Friday at $42 per share. It ended its first day of trading down 8%, among the worst first day performances of a company worth more than $10 billion at its IPO.
Parsons (PSN) raised $500 million at a market cap of $2.6 billion. It traded up 11% on its first day and ended the week up 15% from its IPO. The company, which proves technology-driven defense, intelligence, and infrastructure solutions, has strong revenue visibility on the back of its large government contracts and strong free cash flow.
HeadHunter Group (HHR), a Russian job recruitment site, priced its IPO at the high end of the range, raising $220 million at a market cap of $675 million. It popped 17% on its first day and finished the week up 24% from its IPO.
Mayville Engineering (MEC) raised $106 million at a $335 million market cap. After pricing its IPO below the range, the company traded relatively flat, dropping only 3% on its first day, and remaining there by the end of the week.
Jiayin Group (JFIN), a Chinese online lending marketplace, was the second best performer of the week, popping 54% after pricing its IPO 9% below the midpoint of its proposed range.
Five biotechs priced this week and had extremely mixed trading. Cortexyme (CRTX), an Alzheimers biotech, jumped 93% on its first day, making it the best performing biotech of the year by first day performance, while Axcella Health (AXLA) and Trevi Therapeutics (TRVI) dropped 31% and 21% respectively, making them the two worst performing biotechs of the year by first day performance and top five worst performing among all IPOS.
Three SPACS also IPO'd this week, raising a total of $725 million. 21 SPACs have gone public this year raising a total of $4.4 billion.
Only three companies filed this week, including GSX Techedu (GSX), a Chinese K-12 online after-school tutoring company, Mowhawk (MWK), an AI-driven consumer products company, and another SPAC, GigCapital2 (GIX.U).
| 15 IPOs During the Week of May 6th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 05/10 |
| Jiayin Group (JFIN) | $37M | $562M | -9% | +54% | +54% |
| Chinese online lending marketplace. | |||||
| Cortexyme (CRTX) | $75M | $476M | 0% | +93% | +40% |
| Developing a novel therapy for Alzheimer's disease using a microbe inhibitor. | |||||
| NextCure (NXTC) | $75M | $350M | 0% | +33% | +30% |
| Clinical-stage biotech developing next-gen cancer immunotherapies. | |||||
| HeadHunter Group (HHR) | $220M | $675M | 10% | +17% | +24% |
| Online job recruitment platform in Russia. | |||||
| Milestone Pharmaceuticals (MIST) | $83M | $385M | 0% | +2% | +20% |
| Phase 3 biotech developing therapies for heart rate conditions. | |||||
| Parsons (PSN) | $500M | $2,610M | 0% | +11% | +15% |
| Provides technology-driven defense, intelligence, and infrastructure solutions. | |||||
| South Plains Financial (SPFI) | $59M | $306M | -5% | +1% | +3% |
| West Texas commercial bank with 21 full-service locations. | |||||
| Health Sciences Acq. (HSACU) | $100M | $125M | 0% | +3% | +3% |
| Blank check company formed by RTW Investments to acquire a biopharma or medical technology business. | |||||
| Landcadia Holdings II (LCAHU) | $275M | $338M | 0% | +0% | +0% |
| The second blank check company formed by the CEOs of Landry's and Jefferies to acquire an entertainment business. | |||||
| Diamond Eagle Acquisition (DEACU) | $350M | $438M | 0% | +0% | +0% |
| Fifth blank check company formed by entertainment veteran Jeff Sagansky. | |||||
| Sonim (SONM) | $39M | $231M | -21% | +0% | +0% |
| Makes rugged mobile phones and accessories for industrial and public workers. | |||||
| Mayville Engineering (MEC) | $106M | $335M | -15% | -3% | -3% |
| Manufactures components for commercial and industrial vehicle OEMs. | |||||
| Uber (UBER) | $8,100M | $82,020M | -4% | -8% | -8% |
| Operates the world's largest on-demand ridesharing network. | |||||
| Trevi Therapeutics (TRVI) | $55M | $184M | -33% | -21% | -17% |
| Developing an extended-release version of an opioid for new indications. | |||||
| Axcella Health (AXLA) | $71M | $519M | -5% | -31% | -30% |
| Developing amino acid-based therapies to treat liver and other diseases. | |||||
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| 3 Filings During the Week of May 6th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Mohawk (MWK) | $58M | Consumer Discretionary | Roth Cap. |
| Sells consumer products based on market data gathered using its AI platform. | |||
| GigCapital2 (GIX.U) | $130M | SPAC | EarlyBird |
| Blank check company formed by semiconductor veteran Avi Katz to acquire a TMT business. | |||
| GSX Techedu (GSX) | $220M | Consumer Discretionary | Credit Suisse |
| Provides K-12 online after-school tutoring in China. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/9/19, the Renaissance IPO Index was up 33.2% year-to-date, while the S&P 500 had a gain of 15.3%. 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 11.0% 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.
