Just one pre-sold Chinese deal priced this past week, as the IPO market reeled from the recent market volatility.
The bigger IPO news came from software unicorn Qualtrics International (XM), which launched a $400 million offering. At the midpoint, Qualtrics would be valued at $4.8 billion.
On the initial filings front, biotech giant Moderna Therapeutics (MRNA) filed for a $500 million offering. Founded by Flagship Pioneering, it has raised over $2.6 billion since inception.
| 1 IPO During the Week of November 5th, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 11/09 |
| CNFinance Holdings (CNF) | $49M | $567M | -6% | n/a | -3% |
| Leading provider of home equity loans in China. | |||||
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CNFinance (CNF) raised $49 million at a $567 million market cap by pricing at the $7.50 low end. The company disclosed disclosed that several outside investors had indicated on over 100% of the deal when it launched; they ended up taking down 92%. The home equity loan provider finished the week down -3%.
| 5 Filings During the Week of November 5th, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| DiaMedica Therapeutics (DMAC) | $15M | Health Care | Craig-Hallum |
| Phase II biotech developing therapies for acute ischemic stoke and vascular dementia. | |||
| Legacy Housing (LEGH) | $69M | Real Estate | B. Riley FBR |
| Builds, sells, and finances manufactured homes. | |||
| Moderna (MRNA) | $500M | Health Care | Morgan Stanley |
| Biotech developing therapies based on its modified mRNA platform. | |||
| MOGU (MOGU) | $200M | Technology | Morgan Stanley |
| Online fashion and lifestyle platform in China. | |||
| New Fortress Energy (NFE) | $100M | Energy | Morgan Stanley |
| Integrated gas-to-power company formed by Fortress Investment Group. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/8/18, the Renaissance IPO Index was down 3.3% year-to-date, while the S&P 500 had a gain of 6.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (VICI) and Spotify (SPOT). The Renaissance International IPO Index was down 14.4% year-to-date, while the ACWX was down 8.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Siemens Healthineers and innogy.
