The post-Independence Day week was slow, but things are looking up: the public market is gaining steam with the Renaissance IPO Index up 40% YTD, and companies are claiming their spots on the IPO calendar. Three SPACs entered the public market this week, four companies and one SPAC submitted initial filings, and 12 companies set terms.
Pivotal Investment Corp II (PIC.U), a blank check company led by acquisition veteran Jonathan Ledecky targeting a high-growth business, raised $200 million and SC Health Corp (SCPE.U), a blank check company targeting the healthcare industry in the Asian Pacific region, raised $150 million as planned.
Tuscan Holdings Corp II (THCAU), the second blank check company led by Stephen Vogel targeting the cannabis industry, went public with a $150 million IPO, $25 million more than it had originally filed to raise.
| 3 IPOs During the Week of July 8th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 07/12 |
| Tuscan Holdings Corp II (THCAU) | $150M | $183M | 0% | +0% | +0% |
| Second blank check company led by Stephen Vogel targeting the cannabis industry. | |||||
| Pivotal Investment II (PIC.U) | $200M | $250M | 0% | n/a | +0% |
| Blank check company led by acquisition veteran Jonathan Ledecky targeting a high-growth business. | |||||
| SC Health Corp (SCPE.U) | $150M | $200M | 0% | n/a | +0% |
| Blank check company targeting the healthcare industry in the Asian Pacific region. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Four companies submitted initial filings this week. Beijing, China-based CloudMinds (CMDS), which operates an open end-to-end cloud robot system, filed to raise $500 million; recreational boat retailer OneWater Marine (OWM.RC) filed to raise $100 million; Israeli medical aesthetics company InMode (INMD) filed to raise $75 million; and Borr Drilling (BORR), an offshore shallow-water drilling company based in Bermuda, filed to raise $50 million. Fintech SPAC Netfin Acquisition (NFINU) filed for a $220 million IPO.
| 5 Filings During the Week of July 8th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| CloudMinds (CMDS) | $500M | Technology | Citi |
| Operates an open end-to-end cloud robot system and provides cloud AI solutions. | |||
| OneWater Marine (OWM.RC) | $100M | Consumer Discretionary | |
| Recreational boat retailer with 60 locations throughout the US. | |||
| InMode (INMD) | $75M | Health Care | Barclays |
| Israeli developer and supplier of minimally-invasive medical aesthetic products. | |||
| Netfin Acquisition Corp (NFINU) | $220M | SPAC | B. Riley FBR |
| Blank check company led by finance veterans targeting the fintech industry. | |||
| Borr Drilling (BORR) | $50M | Energy | Goldman |
| Offshore shallow-water drilling company with a global fleet of 27 rigs. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
There was movement in the Private Company Watchlist this week (available only on IPO Intelligence). Cybersecurity provider McAfee (MCFE.RC) is rumored to be planning a return to the public market, and office space manager WeWork is seeking to raise billions of dollars in debt ahead of its IPO.
Social Capital Hedosophia (IPOA), a blank check company targeting a large private tech company, found what it was looking for in Richard Branson’s space tourism venture Virgin Galactic, valuing the company at $1.5 billion. After the proposed acquisition, it would become the first publicly listed human-spaceflight company.
The world’s largest IPO of 2019 has hit a snag. Budweiser Brewing Company APAC, the Asia-Pacific business of AB InBev, delayed pricing its $9.8 billion Hong Kong IPO on Friday. According to Reuters, Budweiser APAC is running into valuation issues; the company now has until Monday at 11:59pm to take action or the offering will lapse.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/11/19, the Renaissance IPO Index was up 41.5% year-to-date, while the S&P 500 had a gain of 21.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Elanco(ELAN). The Renaissance International IPO Index was up 13.7% year-to-date, while the ACWX was up 14.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Meituan-Dianping.
