Eventbrite (EB) and Farfetch (FTCH) made headlines as the week's largest IPO applicants. The online ticketing platform and luxury goods marketplace could launch their offerings during the first week of September.
We released two IPO commentaries this week, highlighting some important info from the Farfetch filing as well as a comparison of Chinese electric vehicle company NIO and its US rival Tesla.
On the pricing front, one company and two blank checks went public as the August lull continues.
| 1 IPO and 2 SPACs During the Week of August 20th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 08/24 |
| Bionano Genomics (BNGOU) | $21M | $57M | -66% | +0% | +4% |
| Sells a proprietary system for next-generation genome analysis. | |||||
| Tenzing Acquisition (TZACU) | $55M | $70M | 0% | +0% | +0% |
| Blank check company formed to acquire a business in India. | |||||
| Megalith Financial Acq. (MFACU) | $150M | $188M | 0% | n/a | +0% |
| Blank check company formed by Megalith Capital to acquire a financial services or fintech business. | |||||
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Originally scheduled for July, Bionano Genomics (BNGOU) slashed its range, added warrants and increased insider buying (63% of the deal), so that it could raise $21 million and list on the Nasdaq. Bionano finished 4% above its unit offer price.
Megalith Financial Acquisition (MFACU) raised $150 million. Led by Customers Bancorp CEO Jay Sidhu and his son, Megalith Capital's Samvir Sidhu, the SPAC plans to acquire a financial services or fintech business. Tenzing Acquisition (TZACU) raised $55 million as it sets out to acquire a business in India.
That brings the 2018 YTD total for SPACs up to 30 deals raising $6.4 billion, well above this point last year (22 SPACs) and close to eclipsing the 2017 full-year total (34).
US IPO Pipeline Update: Eventbrite and Farfetch lead 8 new filings
| 8 Filings During the Week of August 20th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Arco Platform (ARCE) | $100M | Other | Goldman |
| Provides turnkey educational solutions to private schools in Brazil. | |||
| Bank7 (BSVN) | $75M | Financials | KBW |
| Oklahoma-based bank with branches in Texas and Kansas. | |||
| Y-mAbs Therapeutics (YMAB) | $92M | Health Care | BofA ML |
| Phase 2 biotech developing monoclonal antibody therapies for pediatric cancers. | |||
| Eventbrite (EB) | $200M | Technology | Goldman |
| Online live event ticketing platform. | |||
| Gritstone Oncology (GRTS) | $80M | Health Care | Goldman |
| Preclinical biotech developing a therapy that enhances checkpoint immuno-oncology drugs. | |||
| Churchill Capital (CHC.U.RC) | $400M | SPAC | Citi |
| Blank check company formed by dealmaker Michael Klein and former IHS CEO Jerre Stead to acquire a data and analytics provider. | |||
| Farfetch (FTCH) | $400M | Technology | Goldman |
| Global online marketplace for luxury fashion brands and retailers. | |||
| FVCBankcorp (FVCB) | $40M | Financials | Sandler |
| Community bank serving Washington, D.C. and Northern Virginia. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 8.3% year-to-date, while the S&P 500 is up 8.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Athene (ATH). The Renaissance International IPO Index is down 7% year-to-date, while the ACWX is down 4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Delivery Hero and Siemens Healthineers.
