Moderna (MRNA) was not the cure for the biotech industry, which has broadly sold off this quarter.
Moderna upsized its offering to raise $604 million at a record-shattering $8.1 billion valuation. It is the largest biotech IPO by both deal size and proceeds raised. It also had one of the year's worst first-day returns, tumbling -19%, from $23.00 to $18.60. While Moderna's potential is massive, no mRNA therapies have been approved, it has a steep cash burn, and it is still in the early stages of drug approval. As we noted in our Pre-IPO report, Moderna was valued by VCs at $10.06 as recently as February.
Synthorx (THOR) was the week's bright spot, gaining 15% on Friday after pricing an upsized IPO at the midpoint. Backed by Avalon Ventures and RA Capital, the company is developing a breakthrough cancer therapy, but has not tested its drug in humans. Over half of the deal was indicated on by insiders.
Chinese fashion site MOGU (MOGU) priced at the low end to raise $67 million at a $1.6 billion valuation. The stock opened with a 14% loss on Thursday, climbed back up to its offer price by end-of-day, and then sunk 4% on Friday. Investors may have been skeptical of Mogu's plan to restart growth after sales declined in its most recent fiscal year.
DiaMedica Therapeutics (DMAC) also priced a $16 million IPO uplisting; with a market cap below $50 million, however, we are not counting it in our IPO stats.
| 3 IPOs During the Week of December 3rd, 2018 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 12/07 |
| Synthorx (THOR) | $131M | $355M | 0% | +15% | +15% |
| Preclinical biotech developing immunotherapies for solid tumors. | |||||
| MOGU (MOGU) | $67M | $1,579M | -7% | n/a | -4% |
| Tencent-backed online fashion marketplace in China. | |||||
| Moderna (MRNA) | $604M | $8,120M | 0% | -19% | -19% |
| Early-stage biotech developing therapies based on its modified mRNA platform. | |||||
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| 1 Filing During the Week of December 3rd, 2018 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Ardent Health (ARDT) | $400M | Health Care | Barclays |
| LBO'd operator of 31 acute care hospitals. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/6/18, the Renaissance IPO Index was down 8% year-to-date, while the S&P 500 had a gain of 3%. 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 17% year-to-date, while the ACWX was down 12%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include innogy and Siemens Healthineers.
