After three weeks without an initial public offering, the IPO market's annual hiatus comes to a close with the two small health care companies expected in the upcoming week. IPO performance has improved recently, as the total return for IPOs year-to-date averages about 17%, compared with 8% at a low point in early August. Nearly 20 companies submitted initial filings in the past two weeks, indicating heavy IPO activity in the fall.
Affimed Therapeutics (AFMD) is in early development stages for immunotherapy antibodies that treat lymphomas, leukemia and other cancers. Backed by Aeris Capital, OrbiMed and Novo A/S, Affimed could generate interest based on the performance of June IPO Kite Pharma (KITE), another early-stage immunotherapy lymphoma biotech, which priced above its range and trades 44% above its IPO price.
ReWalk Robotics (RWLK) makes exoskeletons that enable paraplegics to walk, with potential indications for quadriplegia and multiple sclerosis. The Israeli company has deployed 81 of its $70,000 systems, which were approved by the FDA in June for personal use. Achieving scale will require the systems' approval for third-party reimbursement, which could be years away.
Renaissance has issued institutional pre-IPO research reports on both deals.
| Expected IPOs (week of September 8, 2014) | ||||
| Company (Ticker) | Business | Proposed Trading Date | Lead Underwriters | Deal Size ($mm) |
| Affimed (AFMD) | Biotech: early-stage lymphoma immunotherapy | Wk of 09/08 | Jefferies Leerink |
$75 |
| ReWalk (RWLK) | Exoskeleton maker for paraplegics to walk | Wk of 09/08 |
Barclays Jefferies |
$50 |
Both ReWalk and Affimed were included in our IPO Fall Preview, which offers insights into the most notable upcoming IPOs. Five health care IPOs were also added to the calendar for the following week, including an LBO'd care provider for the developmentally disabled and four biotechs treating a blood clotting disorder, prostate cancer, acne and diabetes.
Chinese e-commerce giant Alibaba (BABA) filed terms on Friday afternoon for a proposed $20 billion IPO, the largest ever, to begin trading on Friday, September 19. At the midpoint, it would command a fully diluted market value of $161 billion, making it the 23rd-largest US-listed corporation.
On Monday morning, Citizens Financial Group (CFG) set terms for a $3.4 billion IPO, the largest bank IPO in five years. It should begin trading the week of September 22.
