US IPO Weekly Winners & Losers

The fall IPO market is here and the forecast is partly cloudy.

Two biotechs joined the calendar: Bicara Therapeutics (Nasdaq: BCAX) is targeting cancer, and Zenas BioPharma (Nasdaq: ZBIO) is going after autoimmune diseases.

Both Massachusetts-based biotechs are developing “bifunctional” antibodies that can potentially fight a disease with two different mechanisms. Also, both deals are led by Morgan Stanley, start trading on Friday, and aim to raise $200 million by offering shares at $16 - $18.

Equity markets were rocked this week by a sell-off in the tech sector, including chip stocks. The IPO index declined -5.1%, worse than the S&P 500 (-4.2%), but better than the Nasdaq Composite (-5.8%) and the ARK Innovation ETF (-7.2%).

In our index of new stocks, the week's winner was software development platform GitLab, which jumped +12.0% on a beat-and-raise quarter. Industrial infrastructure play Core & Main dropped -20.8% after an earnings miss and lowered guidance.

On Tuesday we released our August IPO Market Update – it’s worth a read, especially if you took vacation in August.

This week two small Chinese companies listed on the Nasdaq, including a Chinese cancer treatment company (PTHL) and a financial communications firm (PMAX). It's been a common theme for the past two years. Year-to-date, China has produced 24 small US IPOs (<$50mm), double that of similar-sized US companies. The week also saw two more SPACs raise $200 million apiece, and 5 new SPAC mergers announced.

Three notable IPO filers this week: biotech BioAge Labs (Nasdaq: BIOA), aerospace company StandardAero (NYSE: SARO), and childcare provider KinderCare Learning (NYSE: KLC), which re-filed after a failed listing attempt in 2021. Cable news broadcaster Newsmax Media filed confidentially for a Reg A+ offering, and asset manager HPS Investment Partners is said to be close to a public filing. Find more pipeline names in our 2024 Fall Preview.