The shortened holiday week saw three healthcare IPOs raise over $150 million, bringing the year-to-date total up to 34 offerings.
Can't stop Nant: NantHealth surges 33% in year's second-best IPO debut
Billionaire founder and CEO Patrick Soon-Shiong became even richer, as NantHealth (NH) raised $91 million and popped 33% on its debut. Addressing a $50+ billion market, the company acquired widely-used digital applications, and now plans to leverage that scalable network by launching its next-generation cancer diagnostic test, licensed from Soon-Shiong's NantOmics venture. Nearly half of the deal was taken down by insiders, resulting in a tradable float of about 3% of the company's market cap, which often makes for volatile trading. Soon-Shiong's 2015 biotech IPO NantKwest (NK) surged 39% on its first day, but is now 69% below the offer price.
Healthcare takes a cut: Two smaller and delayed deals drop their valuations to price
Originally scheduled for the prior week, Clearside Biomedical (CLSD) raised $50 million by slashing the offer price and selling additional shares, half of which were bought by insiders, and went public at a $143 million market cap (45% lower than original). Backed by Cormorant and Perceptive Advisors, the company is developing a unique microinjection device for eye diseases, a highly competitive space, and it finished the week up just 1%. Founder-led x-ray systems maker Sensus Healthcare (SRTSU) raised $11 million and traded up 17% on its debut. The company first set terms in March, but since then replaced its underwriter, added warrants and cut its IPO market value by 26%.
| IPO Pricings for the Week of May 30th, 2016 | |||||
| Issuer Business |
Deal Size ($mm) |
Market Cap ($mm) |
Price vs. midpoint |
First day return |
Return at 6/3 |
| NantHealth (NH) |
$91 | $1,755 | 0% | +33% | +32% |
| Provides healthcare data solutions and will launch new cancer diagnostic. |
|||||
| Sensus Healthcare (SRTSU) | $11 | $72 | -50% | +17% | +17% |
| Sells low-energy x-ray systems for treating non-melanoma skin cancer and keloids. |
|||||
| Clearside Biomedical (CLSD) | $50 | $143 | -53% | +4% | +1% |
| Developing a combination drug-device therapy for eye diseases. |
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IPO filing activity rebounds with six deals added to the pipeline, including two tech
The drop-off of initial filings in May appeared to threaten June IPO activity, but six companies filed for IPOs that we estimate could raise an aggregate $2 billion, making it the most active week for filings since the start of the year. Combining strong growth and positive cash flow, Blue Coat (BLCT) is a Bain-backed web security software provider that we estimate could raise $500 million. Impinj (PI), the market leader in RFID tag technology with three years of profitability, filed to raise $60 million. The two emerging growth tech companies join recent filer Twilio (TWLO) in aiming for June IPOs, though the month's first will be China-based 51Talk (COE), which is scheduled for the week ahead. Meanwhile, Nutanix's (NTNX) filing last week showed strong billings growth in the recent quarter.
Auto lubricant dealer Valvoline (VVV) filed for an estimated $800 million IPO as it plans to complete a spinoff of Ashland. Door and window maker JELD-WEN (JWEN.RC), which has $3.4 billion in sales, filed for an estimated $500 million offering. Swiss Alzheimer's biotech AC Immune (ACIU) and gene therapy biotech Syros Pharmaceuticals (SYRS) filed to raise $50 million and $69 million, respectively. In addition, home decor retailer At Home Group (HOME) and non-prime lender Elevate Credit (ELVT) both submitted updated financials.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 3.6% year-to-date, while the Nasdaq is down 1.3% (S&P +2.7%). Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 2.9% year-to-date, compared to +2% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include NN Group and Aena S.A. To find out if this is the best ETF for you, visit our IPO investing page.
