Six IPOs raised $2.9 billion this week. Four traded up over 40%, and none finished the week below issue.
Spun out of Eli Lilly, Elanco Animal Health (ELAN) priced above its range to raise $1.5 billion. The company popped 50% on its first day, the best first day return for a billion-dollar IPO in 5 years.
Fast-growing tech companies Eventbrite (EB) and Farfetch (FTCH) each priced above the range and popped over 40%. Ticketing platform Eventbrite was a clear buy, with its sales growth, positive cash flow and valuation discount. Luxury goods marketplace Farfetch, on the other hand, shows that investors are putting a high premium on growth, despite heavy near-term losses.
Immuno-oncology biotech Y-mAbs Therapeutics (YMAB) clinched the top spot this week, up 50%.
Oklahoma-based Bank7 (BSVN) raised $65 million and traded about flat, possibly due to concerns over its energy exposure. Chinese P2P lending platform X Financial (XYF) popped 26% but finished the week at its offer price; prior to the IPO, it disclosed that investors had indicated on about 95% of the deal.
Two IPOs failed to price. Zekelman Industries (ZEK) postponed its $752 million IPO, likely due to uncertainty over the effects of steel tariffs. It is the second steel tube maker to postpone an IPO in 2018, following IPSCO in February. Oil and gas mineral interest owner Remora Royalties (RRI) postponed its $105 million IPO due to market conditions.
| 6 IPOs During the Week of September 17th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 09/21 |
| Y-mAbs Therapeutics (YMAB) | $96M | $564M | 7% | +50% | +50% |
| Phase 2 biotech developing monoclonal antibody therapies for pediatric cancers. | |||||
| Eventbrite (EB) | $230M | $2,113M | 15% | +59% | +49% |
| Online live event ticketing platform. | |||||
| Farfetch (FTCH) | $885M | $6,302M | 25% | +42% | +42% |
| Global online marketplace for luxury fashion brands and retailers. | |||||
| Elanco Animal Health (ELAN) | $1,510M | $8,549M | 12% | +50% | +42% |
| Spin-off of Eli Lilly's global animal health medicines and vaccines business. | |||||
| Bank7 (BSVN) | $65M | $197M | -3% | +0% | +1% |
| Oklahoma City-based bank with seven branches in OK, TX and KS. | |||||
| X Financial (XYF) | $105M | $1,511M | -5% | +26% | +0% |
| Operates a peer-to-peer lending platform in China. | |||||
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| 9 Filings During the Week of September 17th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| PhaseBio Pharmaceuticals (PHAS) | $86M | Health Care | Citi |
| Early-stage biotech developing therapies to treat orphan diseases. | |||
| SolarWinds (SWI) | $500M | Technology | Goldman |
| Provides hybrid IT infrastructure management software. | |||
| SI-BONE (SIBN) | $98M | Health Care | Morgan Stanley |
| Manufactures spinal implants for the alleviation of lower back pain. | |||
| DD3 Acquisition (DDMXU) | $50M | SPAC | EarlyBird |
| Blank check company formed to acquire a business in Mexico. | |||
| Riley Exploration Permian (REPX) | $115M | Energy | SunTrust |
| Oil and gas E&P focused on fracking in the Permian Basin. | |||
| Graf Industrial (GRAF.U) | $225M | SPAC | EarlyBird |
| Blank check company formed by SPAC veteran James Graf to acquire an industrial business worth over $1 billion. | |||
| SpineEx (SPIX) | $17M | Health Care | ThinkEquity |
| Developing spinal implants to improve spinal fusion surgeries. | |||
| Equillium (EQ) | $86M | Health Care | Jefferies |
| Phase 1 biotech developing monoclonal antibody therapies for aGVHD & cGVHD. | |||
| IMAC Holdings (IMAC) | $17M | Health Care | Cuttone & Co. |
| Operates a chain of integrated medicine and chiropractic centers. | |||
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