In the busiest week since July, eight companies entered the public market while recreational boat retailer OneWater Marine (ONEW) postponed its $60 million deal. Two insurance plays and a biotech traded up more than 15%, while all three Chinese issuers fell by more than 15%. Four companies and three SPACs submitted initial filings.
Florida insurance brokerage BRP Group (BRP) raised $230 million in the largest deal of the week, pricing at the bottom of the range to command a market cap of $908 million. Despite slowing in the first half, BRP Group’s history of strong organic growth and active M&A profile spoke to investors; it finished the week up 15%.
Fertility benefits manager Progyny (PGNY) priced below the range to raise $130 million at a $1.3 billion market cap (-14% vs. midpoint). Led by an experienced management team, the company boasts strong growth (117% y/y) and profitability; it finished the week up 23%.
Youdao (DUO), the Chinese online education platform spun out of NetEase, priced its $95 million US IPO slightly above the midpoint to command a $2.0 billion market cap. Recent US IPOs from Chinese issuers have been poorly received, and Youdao was not immune; it finished down 27% in the year's 7th-worst debut.
Late-stage gastrointestinal disease biotech Phathom Pharmaceuticals (PHAT) priced its upsized $182 million IPO at the midpoint to command a $681 million market cap. Formed by Takeda and Frazier to develop and market the Takeda’s GI asset in North America and Europe, its drug has 17 completed Phase 3 trials, bolstered by the product’s commercial success in Japan. Phathom Pharmaceuticals finished the week up 30%.
Early-stage autoimmune biotech Cabaletta Bio (CABA) priced its deal $3 below the range to raise $75 million at a $272 million market cap (-24% vs. midpoint); it finished the week down 9%. Early-stage lung disease biotech TFF Pharmaceuticals (TFFP) raised $22 million to command a $96 million market cap; it finished the week up 1%.
Two small Chinese deals priced. Aesthetic treatment provider Aesthetic Medical International Holdings (AIH) raised $30 million, and nutraceutical producer Happiness Biotech (HAPP) raised $11 million. Both companies broke issue shortly after opening and finished the week down 16% and 18%, respectively.
| 8 IPOs During the Week of October 21st, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 10/25 |
| Phathom Pharmaceuticals (PHAT) | $182M | $681M | 0% | +29% | +29% |
| Phase 3 biotech developing novel therapies for gastrointestinal diseases. | |||||
| Progyny (PGNY) | $130M | $1,283M | -13% | +23% | +23% |
| Provides fertility benefits programs to self-insured employers. | |||||
| BRP Group (BRP) | $230M | $908M | -7% | +17% | +15% |
| Fast-growing insurance brokerage based in Florida. | |||||
| TFF Pharmaceuticals (TFFP) | $22M | $96M | 0% | +1% | +1% |
| Early-stage biotech developing dry-powder therapies for lung diseases. | |||||
| Cabaletta Bio (CABA) | $75M | $272M | -27% | -9% | -9% |
| Phase 1-ready biotech developing engineered T cells for autoimmune diseases. | |||||
| Aesthetic Medical Int'l (AIH) | $30M | $283M | 0% | -16% | -16% |
| Operates aesthetic medical services centers in China. | |||||
| Happiness Biotech (HAPP) | $11M | $138M | 0% | -18% | -18% |
| China-based provider of dietary supplements used in traditional Chinese medicine. | |||||
| Youdao (DAO) | $95M | $2,027M | 3% | -26% | -26% |
| Chinese online education platform being spun out of NetEase. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Chinese debt collector YX Asset Recover (YX.RC) filed for a $200 million US IPO. MegaChips spin-off SiTime (SITM), social media management software Sprout Social (SPT), and Alpine Income Property Trust (PINE), a single-tenant and office REIT being carved out of Consolidated-Tomoka Land, all filed to raise $100 million.
Tech SPAC Software Acquisition Group (SAQNU) filed to raise $125 million, and healthcare SPACs Amplitude Healthcare Acquisition (AMHCU) and GreenVision Acquisition (GAC.RC) filed for $100 million and $50 million IPOs, respectively.
| 7 Filings During the Week of October 21st, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Amplitude Healthcare Acq. (AMHCU) | $100M | SPAC | BMO |
| Blank check company formed by Metalmark Capital and Avego Healthcare Capital targeting healthcare in the US or Europe. | |||
| Software Acquisition (SAQNU) | $125M | SPAC | B. Riley FBR |
| Blank check company led by former Ooyala officers targeting a software company. | |||
| Sprout Social (SPT) | $100M | Technology | Goldman |
| Provides a social media management cloud software platform for businesses. | |||
| Alpine REIT (PINE) | $100M | Real Estate | Raymond James |
| Single-tenant commercial net lease REIT formed by Consolidated-Tomoka. | |||
| SiTime (SITM) | $100M | Technology | Barclays |
| Produces micro-electromechanical systems (MEMS) using silicon timing. | |||
| YX Asset Recovery (YX.RC) | $200M | Financials | Deutsche Bank |
| Provides delinquent consumer debt collection services in China. | |||
| GreenVision Acquisition (GAC.RC) | $50M | SPAC | I-Bankers |
| Blank-check company targeting the healthcare industry in Asia or North America. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/24/19, the Renaissance IPO Index was up 23.7% year-to-date, while the S&P 500 had a gain of 20.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 17.5% year-to-date, while the ACWX was up 14.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
