The 2017 IPO market's final two-week sprint kicks off this week with six IPOs targeting $731 million. The week's three health care IPOs each have significant insider buying, one of which could be the year's largest biotech IPO by market cap, Denali Therapeutics. It and Odonate Therapeutics are both underwritten by Goldman Sachs, the investment bank's only two biotech IPOs of the year.
A number of companies with recent updates in our IPO pipeline may launch on Monday and Tuesday in order to price before year-end. Additionally, Street research is expected for 10 IPOs this week, including three underperforming Chinese companies: Sogo (SOGO; -14% from IPO; JPM lead-left) and Four Seasons Education (FEDU; +1%; MS) on Monday and PPDAI Group (PPDF; -32%; CS) on Tuesday. Additionally, Street research on Bandwidth (BAND; +11%; MS) is expected Tuesday.
| US IPO Calendar | ||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Bookrunners |
| CURO Group Holdings Wichita, KS |
CURO NYSE |
$100 $714 |
$14.00 - 16.00 6,666,667 |
Credit Suisse Jefferies Stephens Inc. |
| Provides payday and installment loans to non-prime consumers in North America. | ||||
| Odonate Therapeutics San Diego, CA |
ODT Nasdaq |
$150 $733 |
$24.00 - 27.00 5,880,000 |
Goldman Sachs Jefferies Cowen & Company |
| Developing an oral chemotherapy drug for breast cancer. | ||||
| Quanterix Lexington, MA |
QTRX Nasdaq |
$50 $325 |
$14.00 - 16.00 3,340,000 |
J.P. Morgan Leerink Partners Cowen & Company |
| Makes next-generation protein detection tests for clinical research. | ||||
| Denali Therapeutics San Francisco, CA |
DNLI Nasdaq |
$150 $1,579 |
$17.00 - 19.00 8,333,333 |
Goldman Sachs Morgan Stanley J.P. Morgan |
| Developing treatments for neurodegenerative diseases. | ||||
| Luther Burbank Santa Rosa, CA |
LBC Nasdaq |
$131 $614 |
$10.50 - 12.50 11,350,000 |
Keefe Bruyette Sandler O'Neill |
| California commercial bank focused on single and multifamily residential loans. | ||||
| GigCapital Santa Rosa, CA |
GIG.U NYSE |
$150 $193 |
$10.00 15,000,000 |
Cowen & Company |
| SPAC formed by semiconductor veteran Avi Katz to acquire a TMT business. | ||||
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3 pre-bought healthcare deals:
Denali Therapeutics (DNLI) is targeting $150 million (33% insider) at a $1.6 billion market value. The biotech is developing a treatment for neurodegenerative diseases such as Alzheimer's, Parkinson's and ALS. Founded by former Genentech employees, the pre-revenue company has raised $350 million to date from Crestline Investors and notable VCs which include ARCH Venture Partners and Flagship Ventures. At the midpoint, it would be the year's largest biotech IPO by market cap.
Odonate Therapeutics (ODT) aims to raise $150 million to fund clinical trials for its novel oral chemotherapy for late-stage breast cancer. If approved, Odonate's lead candidate would allow patients to avoid some of the severe side effects that are traditionally associated with IV-administered chemotherapies. Insiders have indicated for $25 million (17% of the deal) in shares on the IPO.
VC-backed Quanterix (QTRX), which has developed medical instruments with its patented "Simoa" technology for ultra-sensitive protein detection, aims to raise $50 million in the week's third pre-bought deal. Insiders have indicated for $30 million (60% of the offering), which will leave the tradable float at only 6% of the company's market cap. While Quanterix has had its technology validated through its use in 160+ peer-reviewed scientific articles, it will have to overcome the hurdle of displacing legacy biomarker detection methods such as ELISA.
A payday lender, a California bank and a SPAC:
CURO Group Holdings (CURO), which offers loans to subprime consumers, plans to raise $100 million. Led by the former CEO of Dollar Financial, the payday lender operates in the US, Canada and the UK. While the company has managed 20%+ EBITDA margins, it operates in a highly competitive industry with relatively low barriers to entry.
Luther Burbank (LBC), based in Santa Rosa, CA, is a family-owned bank focused primarily on multifamily and single family residential loans. The company aims to raise $131 million. While it has over $5 billion in assets and has recently improved its efficiency ratio, Luther Burbank also has a highly concentrated portfolio, with over half of its loans in southern California real estate.
Blank check company GigCapital (GIG.U) is targeting $150 million in the week ahead. The SPAC's Chairman and CEO, Avi Katz, previously founded and managed semiconductor and software solutions company GigPeak (NYSE: GIG) in 2007 until it was ultimately sold to Integrated Device Technology (Nasdaq: IDTI) for $250 million in cash in 2017. The company will aim to acquire a business in the TMT industries.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 33.8% year-to-date, ahead of the S&P 500, which is up 18.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Square (SQ) and Ferrari (RACE). The Renaissance International IPO Index is up 30.1% year-to-date, while the ACWX is up 22.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Japan Post and Covestro.
