The US's #2 ridesharing app has finally shared its financials. Lyft filed publicly for an IPO that we estimate could raise $3 billion. The "decacorn" booked $2.2 billion in revenue during 2018, a 103% gain over 2017. Meanwhile, losses swelled to about $1 billion.
Two more biotechs also submitted initial filings: gene-editing company Precision BioSciences (DTIL) and liver disease biotech Genfit (GNFT).
The IPO calendar has begun to build up as we exit the February lull. Medical device maker ShockWave Medical (SWAV) and high-growth Chinese brokerage Futu Holdings (FHL) both launched.
Two IPOs raised a combined $100 million this past week, and three SPACs raised over $700 million.
| 5 IPOs During the Week of February 25th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 03/01 |
| Hennessy Capital IV (HCACU) | $261M | $324M | 0% | +0% | +0% |
| Blank check company targeting the industrial and infrastructure sectors. | |||||
| DiamondPeak Holdings (DPHCU) | $250M | $313M | 0% | n/a | +0% |
| Blank check company led by David Hamamoto targeting the real estate industry. | |||||
| Tortoise Acquisition (SHLL.U) | $225M | $281M | 0% | +0% | +0% |
| Blank check company led by Vincent Cubbage and focused on the energy industry. | |||||
| Kaleido Biosciences (KLDO) | $75M | $495M | -29% | -5% | -2% |
| Early-stage biotech developing oral microbiome therapies. | |||||
| Super League Gaming (SLGG) | $25M | $97M | 0% | -23% | -18% |
| Facilitates and streams amateur e-sports competitions. | |||||
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Microbiome biotech Kaleido Biosciences (KLDO) raised $75 million at a market cap of $495 million after slashing its IPO price to $15, or $5 below the range. It finished the week at $14.77 (-1.5%), following in the footsteps of two other Flagship-backed microbiome biotechs, Seres Therapeutics (MCRB; -66% from 2015 IPO) and Evelo Biosciences (EVLO; -45% from 2018 IPO).
Super League Gaming (SLGG) raised $25 million at a market cap of almost $100 million. The stock fell 22.7% on its first day, so far the year's worst. Super League is the only pure-play US e-sports stock, but it is still early stage, with just $1 million of trailing revenue.
The SPAC surge continues. Hennessy Capital Acquisition IV (HCACU) was the week's largest blank check, upsizing its deal to $261 million. Led by SPAC veteran Daniel Hennessy, the company targets industrial and infrastructure businesses. DiamondPeak Holdings (DPHCU) raised $250 million; it is led by David Hamamoto, former CEO of real estate group NorthStar. Tortoise Acquisition (SHLL.U) raised $200 million to acquire an energy business. SPACs have now raised $2.1 billion so far this year, compared to $1.2 billion for the rest of the IPO market.
| 4 Filings During the Week of February 25th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Lyft (LYFT) | $3,000M | Technology | JP Morgan |
| Operates an on-demand ridesharing app that connects riders and drivers. | |||
| Precision BioSciences (DTIL) | $100M | Health Care | JP Morgan |
| Early stage biotech developing gene edited Car T Cells for various cancers. | |||
| Genfit (GNFT) | $100M | Health Care | Leerink |
| Phase 3 biotech developing therapies for NASH. | |||
| Trine Acquisition (TRNEU) | $250M | SPAC | BTIG |
| SPAC led by Leo Hindery targeting the media and communications industries. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/28/19, the Renaissance IPO Index was up 29.7% year-to-date, while the S&P 500 had a gain of 11.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (VICI) and Altice (ATUS). The Renaissance International IPO Index was up 9.9% year-to-date, while the ACWX was up 9.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.
