Three companies entered the public market, including the first two semiconductor IPOs in two years, and all priced at the low end in another week marked by mark-downs. They were joined by five SPACs, the most SPACs in a week, ever. Chinese debt collector YX Asset Recovery (YXR) postponed then withdrew its $81 million US IPO, the first of the 4Q19’s China wave to do so. Two Chinese issuers and one SPAC submitted initial filings.
MegaChips spin-off SiTime (SITM), a fabless producer of silicon timing systems, raised $56 million at a $186 million market cap. Despite lumpy growth, SiTime was able to pique investor interest with its large share of the nascent silicon-based oscillator market, used in connected devices. After popping 44% in its debut, the company traded off slightly, finishing up 39%.
In the first pure-play public equity targeting Bitcoin, Canaan (CAN) raised $90 million at a $1.4 billion market value. It’s the world’s second largest producer of Bitcoin mining equipment with a 23% share, but its heavy exposure to Bitcoin and consequently volatile revenue and margins left investors wary. After dropping as much as 17% intraday on Friday, Canaan finished flat.
Retail and office REIT Alpine Income Property Trust (PINE) raised $143 million at a $173 million market cap. Carved out of Consolidated-Tomoka (NYSE: CTO), Alpine Income offered a 4.2% yield, but the small and concentrated REIT garnered little interest from investors, finishing flat.
Targeting the healthcare industry, Concord Health Partners’ CHP Merger Corp. (CHPMU) raised $250 million and Avego and Metalmark Capital’s Amplitude Healthcare Acquisition (AMHCU) raised $100 million. Hennessy Capital’s real estate tech SPAC PropTech Acquisition (PTACU) raised $150, and former Ooyala officers’ software SPAC Software Acquisition Group (SAQNU) raised $130 million. Led by a team from Shanghai, GreenVision Acquisition (GRNVU) raised $50 million to acquire a healthcare business outside of China.
| 8 IPOs During the Week of November 18th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 11/22 |
| SiTime (SITM) | $56M | $186M | -7% | +43% | +39% |
| Fabless producer of silicon timing systems being spun out of MegaChips. | |||||
| PropTech Acquisition (PTACU) | $150M | $188M | 0% | +1% | +1% |
| Blank check company led by partners at Hennessy Capital targeting a real estate technology business. | |||||
| Software Acquisition (SAQNU) | $130M | $161M | 0% | +1% | +1% |
| Blank check company led by former Ooyala officers targeting a software company. | |||||
| GreenVision Acquisition (GRNVU) | $50M | $63M | 0% | +0% | +1% |
| Blank check company led by Shanghai dealmakers targeting healthcare firms outside of China. | |||||
| CHP Merger Corp. (CHPMU) | $275M | $338M | 0% | +1% | +1% |
| Blank check company led by a team from Concord Health Partners targeting the healthcare industry. | |||||
| Alpine REIT (PINE) | $143M | $173M | -5% | +0% | +0% |
| Single-tenant commercial net lease REIT formed by Consolidated-Tomoka. | |||||
| Amplitude Healthcare Acq. (AMHCU) | $100M | $125M | 0% | +0% | +0% |
| Blank check company formed by Avego and Metalmark Capital targeting healthcare in the US or Europe. | |||||
| Canaan (CAN) | $90M | $1,423M | -10% | +0% | +0% |
| Fabless designer of Bitcoin mining equipment. | |||||
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.
Two Chinese issuers filed for US IPOs. Cancer diagnostics provider Genetron Holdings (GTH) filed to raise $100 million, and Zhongchao (ZCMD), which provides online medical information, filed to raise $15 million.
Mexico-focused SPAC LIV Capital Acquisition (LIVKU), led by Mexican private equity firm LIV Capital, plans to raise $60 million.
| 3 Filings During the Week of November 18th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Genetron Holdings (GTH) | $100M | Health Care | Credit Suisse |
| Provides molecular profiling and diagnostics for cancer patients in China. | |||
| Zhongchao (ZCMD) | $15M | Technology | Network 1 |
| Chinese internet platform providing medical information, education, and training. | |||
| LIV Capital Acquisition (LIVKU) | $60M | SPAC | EarlyBird |
| Blank check company led by a team from LIV Capital targeting Mexico. | |||
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 11/21/19, the Renaissance IPO Index was up 30.5% year-to-date, while the S&P 500 had a gain of 23.8%. 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 17.9% year-to-date, while the ACWX was up 16.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
