Three drug developers and a medical imaging company went public this past week, joined by eight SPACs.
Preclinical protein degradation biotech Kymera Therapeutics (KYMR) upsized and priced above the range to raise $174 million at a $938 million market cap. The company is very early stage, with its first IND not expected until the 1H21. However, protein degradation has attracted interest from big pharmas, and the company has potentially lucrative collaborations with Sanofi and Vertex Pharmaceuticals. Kymera finished up 66%.
Commercial pharma Harmony Biosciences Holdings (HRMY) upsized and priced above the range to raise $128 million at a $1.6 billion market cap. The company’s sole marketed product, WAKIX, is the first and only approved product for adult narcolepsy that is not scheduled as a controlled substance. Though it has achieved 6% penetration of treated narcolepsy patients in the US, generic versions of a competitor’s drug could cause pricing pressure in the future. Harmony finished up 50%.
Israel-based Nano-X Imaging (NNOX) upsized and priced at the high end to raise $165 million at a $903 million market cap. The company is developing low-cost digital CT-like scan systems based on its novel X-ray technology, addressing the $10+ billion X-ray imaging market. It has yet to launch commercialization, though its Nanox.Arc device is expected to roll out in the 2H21, pending FDA approval. Nano-X finished up 21%.
Single-domain antibody biotech Inhibrx (INBX) upsized and priced at the midpoint to raise $119 million to $637 million market cap. In its second IPO attempt, the company came back with preliminary efficacy data for its lead candidate, INBRX-109, which showed stable disease and partial responses. However, there was one death in its current Phase 1 trial, and the company will need additional funding to continue development. Inhibrx finished up 20%.
The week’s eight SPAC IPOs raised $3.3 billion, led by Bill Foley’s Foley Trasimene Acquisition II (BFT.U), which completed a $1.3 billion upsized offering in the third-largest SPAC ever.
| 12 IPOs During the Week of August 17th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 08/21 |
| Kymera Therapeutics (KYMR) | $174M | $938M | 18% | +66% | +66% |
| Preclinical biotech developing protein degraders for oncology and immunology. | |||||
| Harmony Biosciences (HRMY) | $128M | $1,570M | 12% | +54% | +50% |
| Markets a therapy for adult narcolepsy in the US. | |||||
| Nano-X Imaging (NNOX) | $165M | $903M | 6% | +21% | +21% |
| Developing affordable medical imaging systems. | |||||
| Inhibrx (INBX) | $119M | $637M | 0% | +21% | +20% |
| Phase 1 biotech developing single domain antibodies for cancer and rare diseases. | |||||
| one (AONE.U) | $200M | $250M | 0% | +1% | +1% |
| Blank check company led by the co-founder of Eventbrite and other industry veterans targeting the tech sector. | |||||
| Horizon Acquisition (HZAC.U) | $500M | $625M | 0% | +0% | +0% |
| Blank check company formed by Todd Boehly of Eldridge Industries targeting a financial services business. | |||||
| Foley Trasimene Acq. II (BFT.U) | $1,300M | $1,600M | 0% | +0% | +0% |
| Fourth blank check company formed by financial services veteran Bill Foley. | |||||
| Northern Genesis Acq. (NGA.U) | $300M | $375M | 0% | +0% | +0% |
| Blank check company targeting an environmentally sustainable business. | |||||
| Star Peak Energy (STPK.U) | $350M | $438M | 0% | +0% | +0% |
| Blank check company formed by Magnetar Capital targeting the energy industry. | |||||
| Forum Merger III (FIIIU) | $250M | $320M | 0% | +0% | +0% |
| Third blank check company formed by SPAC veterans David Boris and Marshall Kiev. | |||||
| FAST Acquisition (FST.U) | $200M | $250M | 0% | -1% | -1% |
| Blank check company formed by &vest and entrepreneur Sandy Beall targeting a restaurant or hospitality business. | |||||
| Colonnade Acquisition (CLA.U) | $200M | $250M | 0% | -1% | -1% |
| Blank check company targeting the energy, real estate, and agricultural industries. | |||||
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Six IPOs and five SPACs submitted initial filings. Infrastructure software provider Bentley Systems (BSY) filed for an estimated $800 million IPO. Hemodialysis device manufacture Outset Medical (OM) and gaming hardware manufacturer Corsair Gaming (CRSR) both filed to raise $100 million. Canadian EV manufacturer GreenPower Motor (GP) filed to raise $35 million, Chinese medicine manufacturer Universe Pharmaceuticals (UPC) filed to raise $30 million, and learning software provider Amesite (AMST) filed to raise $16 million.
Casper CEO Philip Krim’s tech SPAC Tailwind Acquisition (TWND.U) and activist hedge fund Starboard Value’s SPAC Starboard Value Acquisition (SVACU) both filed to raise $300 million. Investment veteran Nicholas Singer’s SPAC OTR Acquisition (OTRAU) filed to raise $250 million. Software SPAC Software Acquisition Group II (SAIIU) and emerging growth SPAC Growth Capital Acquisition (GCACU) both filed to raise $150 million.
| 11 Filings During the Week of August 17th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Bentley Systems (BSY) | $800M | Technology | Goldman |
| Provides software for construction and infrastructure projects. | |||
| Corsair Gaming (CRSR) | $100M | Technology | Goldman |
| Designs and supplies personal computer and gaming hardware components. | |||
| Outset Medical (OM) | $100M | Health Care | BofA |
| Provides a hemodialysis system for kidney diseases. | |||
| Software Acquisition II (SAIIU) | $150M | SPAC | B. Riley FBR |
| Second blank check company led by former Ooyala officers targeting a software company. | |||
| GreenPower Motor (GP) | $35M | Industrials | B. Riley FBR |
| Canadian manufacturer of battery-electric commercial vehicles. | |||
| Growth Capital Acq. (GCACU) | $150M | SPAC | Maxim |
| Blank check company formed by SPAC veterans targeting an emerging growth company. | |||
| OTR Acquisition (OTRAU) | $250M | SPAC | Maxim |
| Blank check company formed by the co-founder of Cyrus Capital and Standard General. | |||
| Starboard Value Acq. (SVACU) | $300M | SPAC | UBS |
| Blank check company formed by Starboard Value. | |||
| Tailwind Acquisition (TWND.U) | $300M | SPAC | Jefferies |
| Blank check company formed by Casper CEO Philip Krim targeting a technology business. | |||
| Amesite (AMST) | $16M | Technology | Laidlaw (UK) |
| Provides an AI-driven platform for developing online learning products. | |||
| Universe Pharmaceuticals (UPC) | $30M | Health Care | Univest Securities |
| Chinese pharmaceutical specializing in traditional Chinese medicine derivatives. | |||
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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.
