Two IPOs and two SPACs are scheduled to go public in the week ahead. Chinese EV maker Xpeng (XPEV) is leading summer's last wave with a billion-dollar deal.
Xpeng (XPEV) plans to raise $1.0 billion at an $8.8 billion market cap. Xpeng targets the mid- to high-end segment in China's passenger vehicle market and currently offers two electric vehicles, with a third model expected in 2021. The company is highly unprofitable (-6% LTM gross margin), and revenue was hit hard in the 1H20 as the coronavirus pandemic impacted sales.
Pain relief biotech PainReform (PRFX) plans to raise $23 million at an $82 million market cap. The company's lead candidate is based on local anesthetic ropivacaine and provided substantial pain reduction in a small 15 patient Phase 2 trial. PainReform believes its post-IPO cash will last into 2021, though it will require significant additional funding to continue development.
Technology SPAC Burgundy Technology Acquisition (BTAQU) plans to raise $400 million. Led by the former CEO of HP and a former Chairman from Citi, the company plans to target businesses with enterprise values between $750 million and $2 billion.
Cannabis SPAC Petra Acquisition (PAICU) plans to raise $125 million. The company is led by technology veteran Andreas Typaldos and Sean Fitzpatrick, the founder and Managing Partner of Fidem Advisors.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Xpeng (XPEV) Guangzhou, China |
$1,020M $8,779M |
$11 - $13 85,000,000 |
Credit Suisse JP Morgan |
| Manufactures smart electric SUVs and sedans in China. | |||
| Burgundy Technology Acq. (BTAQU) Grand Cayman, Cayman Islands |
$400M $510M |
$10 40,000,000 |
Mizuho |
| Blank check company formed by the former CEO of HP and a former Citi executive targeting the tech industry. | |||
| PainReform (PRFX) Herzliya, Israel |
$23M $82M |
$8 - $10 2,550,000 |
Maxim Joseph Gunnar |
| Phase 2 Israeli biotech developing therapies for post-operative pain relief. | |||
| Petra Acquisition (PAICU) New York, NY |
$125M $156M |
$10 12,500,000 |
LifeSci Capital Ladenburg |
| Blank check company targeting a cannabis business. | |||
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Street research is expected for seven companies. On Monday, 8/24: Vertex (VERX), AlloVir (ALVR), and Li Auto (LI). On Tuesday, 8/25: 1847 Goedeker (GOED), Fathom Holdings (FTHM), Vasta Platform (VSTA), and Vital Farms (VITL).
Passage Bio's (PASG) lock-up period will be expiring on Wednesday, 8/26.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/20/20, the Renaissance IPO Index was up 48.4% year-to-date, while the S&P 500 was up 4.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Pinduoduo (PDD). The Renaissance International IPO Index was up 31.6% year-to-date, while the ACWX was down 4.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
