Eight companies are going public in the week ahead, including five biotechs, a genome sequencer, a discount grocer, and a the popular workplace messaging software Slack (WORK).
Slack will be the second-ever major direct listing, following Spotify (SPOT) last year, and provide an important data point on its viability as an alternative to IPOs in certain cases. Recent software IPOs have outperformed (ZM, CRWD, PD), and Slack too should draw a lot of interest based on its growth.
The week's largest IPO by deal size is Grocery Outlet (GO), a discount grocer with most of its stores in the Western US raising $275 million. The company has had a strong track record of positive comparable store sales growth, though its LBO has left it highly levered.
The biotechs are mostly early stage, including two that are preclinical (BCEL, STOK).
Already, four more IPOs have set pricing dates for the week of June 24. Expect more to join the calendar in the coming week; likely candidates include talent agency Endeavor Group (EDR), online consignor The RealReal (REAL), and yet another wave of biotechs (Inhibrix - INBX; Karuna Therapeutics - KRTX; Adaptive Biotechnologies - ADPT; Genmab - GMAB; BridgeBio Pharma - BBIO).
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Stoke Therapeutics (STOK) Bedford, MA |
$101M $509M |
$14 - $16 6,700,000 |
JP Morgan Cowen |
| Preclinical biotech developing RNA-targeted therapies for rare genetic diseases. | |||
| Akero Therapeutics (AKRO) South San Francisco, CA |
$75M $430M |
$14 - $16 5,000,000 |
JP Morgan Jefferies |
| Early stage biotech developing therapies for NASH and other metabolic diseases. | |||
| Atreca (BCEL) Redwood City, CA |
$125M $484M |
$16 - $18 7,350,000 |
Cowen Evercore ISI |
| Preclinical biotech developing immunotherapies for solid tumors. | |||
| Dermavant Sciences (DRMT) Phoenix, AZ |
$100M $323M |
$12 - $14 7,700,000 |
Jefferies Leerink |
| Phase 3 biotech developing in-licensed therapies for dermatological diseases. | |||
| Grocery Outlet Holdings (GO) Emeryville, CA |
$275M $1,491M |
$15 - $17 17,187,500 |
BofA ML Morgan Stanley |
| Operates a network of more than 300 independently run discount grocery stores. | |||
| Personalis (PSNL) Menlo Park, CA |
$100M $479M |
$14 - $16 6,666,667 |
Morgan Stanley BofA ML |
| Provides a genome sequencing platform for cancer drug development. | |||
| Prevail Therapeutics (PRVL) New York, NY |
$125M $672M |
$16 - $18 7,353,000 |
Morgan Stanley BofA ML |
| Early stage biotech developing gene therapies for neurodegenerative diseases. | |||
| Slack (WORK) San Francisco, CA |
$7,600M $16,061M |
$26.82 283,362,286 |
|
| Provides a workplace messaging application. | |||
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Slack Technologies (WORK), which provides a workplace messaging application, plans to complete a direct listing on the NYSE. At the weighed average price for private trading during May, Slack would command a market value of $16.1 billion. The San Francisco, CA-based company was founded in 2009 and booked $454 million in sales over the last 12 months.
Akero Therapeutics (AKRO), an early stage biotech developing therapies for NASH and other metabolic diseases, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Akero would command a market value of $430 million. The South San Francisco, CA-based company was founded in 2017and plans to list on the Nasdaq under the symbol AKRO. J.P. Morgan, Jefferies and Evercore ISI are the joint bookrunners on the deal. Insiders intend to purchase up to $30 million of the IPO (40% of the deal).
Atreca (BCEL), a preclinical biotech developing immunotherapies for solid tumors, plans to raise $125 million by offering 7.4 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, Atreca would command a market value of $484 million. The Redwood City, CA-based company was founded in 2010 and plans to list on the Nasdaq under the symbol BCEL. Cowen, Evercore ISI and Stifel are the joint bookrunners on the deal. Insiders intend to purchase up to $60 million of the IPO (48% of the deal).
Dermavant Sciences (DRMT), a Phase 3 biotech developing in-licensed therapies for dermatological diseases, plans to raise $100 million by offering 7.7 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Dermavant would command a market value of $323 million. The Phoenix, AZ-based company was founded in 2015 and plans to list on the Nasdaq under the symbol DRMT. Jefferies, SVB Leerink and Guggenheim Securities are the joint bookrunners on the deal. Parent Roivant Sciences intends to purchase $35 million of the IPO (35% of the deal).
Grocery Outlet Holdings (GO), which operates a network of more than 300 independently run discount grocery stores, plans to raise $275 million by offering 17.2 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, Grocery Outlet Holdings would command a market value of $1.5 billion. Grocery Outlet Holdings, which was founded in 1946, booked $2.3 billion in sales over the last 12 months. The Emeryville, CA-based company plans to list on the Nasdaq under the symbol GO. BofA Merrill Lynch, Morgan Stanley, Deutsche Bank and Jefferies are the joint lead bookrunners on the deal.
Personalis (PSNL), which provides a genome sequencing platform for cancer drug development, plans to raise $100 million by offering 6.7 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Personalis would command a market value of $479 million. Personalis, which was founded in 2011, booked $48 million in sales over the last 12 months. The Menlo Park, CA-based company plans to list on the Nasdaq under the symbol PSNL. Morgan Stanley, BofA Merrill Lynch and Cowen are the joint bookrunners on the deal.
Prevail Therapeutics (PRVL), an early stage biotech developing gene therapies for neurodegenerative diseases, plans to raise $125 million by offering 7.4 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, Prevail Therapeutics would command a market value of $672 million. The New York, NY-based company was founded in 2017 and plans to list on the Nasdaq under the symbol PRVL. Morgan Stanley, BofA Merrill Lynch and Cowen are the joint bookrunners on the deal.
Stoke Therapeutics (STOK), a preclinical biotech developing RNA-targeted therapies for rare genetic diseases, plans to raise $101 million by offering 6.7 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Stoke would command a market value of $509 million. The Bedford, MA-based company was founded in 2014 and plans to list on the Nasdaq under the symbol STOK. J.P. Morgan, Cowen and Credit Suisse are the joint bookrunners on the deal.
Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/13/19, the Renaissance IPO Index was up 35.9% year-to-date, while the S&P 500 had a gain of 16.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Okta (OKTA) and Elanco (ELAN). The Renaissance International IPO Index was up 11.3% year-to-date, while the ACWX was up 10.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
