The IPO market is back from its annual month-long break, with the first listings since mid-August. The hot money has come with it.
Despite a broad sell-off among China stocks, three Chinese companies priced US IPOs this week. All three priced at the low end of the range. News app Qutoutiao, meaning "Fun Headlines," made headlines on Friday when popped 128% - the best of the year - helped by a small float (~3% of market cap). Just as unusual, electric vehicle startup NIO (NIO) raised $1 billion and traded up 5% on its debut, popped 75% on its second day, and then pulled back 12% on its third. Online pharmacy 111 (YI) broke issue and finished down 5%.
Targeting cancers, autoimmune diseases, inflammation, Principia Biopharma (PRNB) priced an upsized offering at the high end. It popped 96%, the year's best pop for a biotech, and the 3rd-best overall. Rounding out the week, Washington, DC area bank FVCBankcorp (FVCB) raised $35 million in a Nasdaq IPO, and finished at its offer price.
Navios Maritime Containers LP (NMCI) postponed its $100 million IPO; the containership operator formed by Navios instead plans to pursue a direct listing. In addition, two companies officially withdrew stale US IPO filings: Petroleum tanker company Product Shipping Limited (PROS) and Guatemalan bank Bicapital (BICA).
The 2018 IPO market just hit a major milestone: this year's IPOs have raised $35.7 billion, more than the full-year 2017 ($35.5 billion). Year-to-date proceeds are 61% higher than this point last year.
In non-US news, China's Meituan Dianping (3690.HK) raised $4.2 billion in the year's fifth-largest global IPO (4/5 have been in China). Institutional investors track the non-US IPO market with IPO Intelligence.
| 5 IPOs During the Week of September 10th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 09/14 |
| Qutoutiao (QTT) | $84M | $2,105M | -13% | +128% | +128% |
| China's second largest mobile content aggregator focusing on lower tier cities. | |||||
| Principia Biopharma (PRNB) | $106M | $418M | 6% | +92% | +92% |
| Developing oral small molecule therapies for pemphigus, ITP and MS. | |||||
| NIO (NIO) | $1,002M | $6,886M | -14% | +5% | +58% |
| China-based producer of high-performance electric vehicles. | |||||
| FVCBankcorp (FVCB) | $35M | $257M | 0% | +0% | +0% |
| Community bank serving Washington, DC and Northern Virginia. | |||||
| 111 (YI) | $99M | $1,212M | -7% | -1% | +0% |
| Operates an online retail drugstore and healthcare platform in China. | |||||
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| 5 Filings During the Week of September 10th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Allogene Therapeutics (ALLO) | $100M | Health Care | Goldman |
| Phase 1 biotech developing off-the-shelf CAR T cell cancer therapies. | |||
| ChaSerg Tech Acquisition (CTAC.U) | $200M | SPAC | Cantor Fitz. |
| Blank check company formed by tech veterans to acquire a technology company. | |||
| Collier Creek (CCH.U) | $350M | SPAC | Citi |
| Blank check company led by Pinnacle Foods Chairman Roger Deromedi. | |||
| ARYA Sciences Acquisition (ARYAU) | $125M | SPAC | Jefferies |
| Blank check company formed by Perceptive Advisors to acquire a healthcare business. | |||
| EdtechX Acquisition (EDTXU) | $55M | SPAC | Chardan |
| Blank check company formed by IBIS Capital to acquire an education technology business. | |||
