Nine companies entered the public market this week, led by customer experience software provider Medallia (MDLA) with a first day pop of 76%. The software company priced at $21, well above the range, to raise $326 million at a fully diluted valuation of $3.6 billion. Medallia’s growth accelerated to 32% in the most recent quarter, and it boasts 32 customers from the Fortune 100.
| 11 IPOs During the Week of July 15th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 07/19 |
| Medallia (MDLA) | $326M | $3,579M | 24% | +76% | +76% |
| Provides enterprise software used to analyze and improve user experience. | |||||
| Phreesia (PHR) | $167M | $744M | 13% | +39% | +33% |
| Provides a patient-intake software platform for healthcare providers. | |||||
| Afya (AFYA) | $261M | $1,666M | 12% | +27% | +27% |
| Brazilian for-profit medical and healthcare education group. | |||||
| AssetMark Financial (AMK) | $275M | $1,595M | 10% | +23% | +24% |
| Provides a wealth management platform for independent financial advisers. | |||||
| Genmab (GMAB) | $506M | $11,567M | -2% | +2% | +2% |
| Developing novel antibodies for cancer and other diseases. | |||||
| Conyers Park II Acq. (CPAAU) | $400M | $500M | 0% | +2% | +2% |
| Second blank check company led by consumer industry veterans from Centerview Capital. | |||||
| Oaktree Acquisition Corp (OAC.U) | $175M | $219M | 0% | +1% | +1% |
| Blank check company led by the head of Oaktree Capital 's Value Equities group. | |||||
| Intercorp Financial (IFS) | $414M | $5,256M | -2% | +0% | +0% |
| Leading bank, insurer, and wealth manager in Peru. | |||||
| DouYu International (DOYU) | $775M | $3,974M | -10% | +0% | -9% |
| Tencent-backed live e-sports streaming platform. | |||||
| Mirum Pharmaceuticals (MIRM) | $75M | $377M | 0% | -12% | -10% |
| Late-stage biotech developing therapies for rare cholestatic liver diseases. | |||||
| Fulcrum Therapeutics (FULC) | $72M | $386M | -6% | -16% | -22% |
| Developing small molecule therapies based on gene regulation for rare diseases. | |||||
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Another software provider, Phreesia (PHR), traded up 39% on its first day and ended the week with a 33% total return. Phreesia provides a patient-intake SaaS subscription for healthcare providers and has strong growth, backed by its 90% renewal rate in FY19 and 107% dollar based net retention.
Huatai Securities spin-off AssetMark Financial (AMK) priced above the range at $22, commanding a market value of $1.6 billion, and finished the week with a 24% total return. AssetMark provides a wealth management platform for independent financial advisers; its platform has seen strong asset growth (17% CAGR from 2014 through 2017) thanks to strong net flows from its adviser clients.
International companies Afya, Intercorp Financial, and DouYu International completed US IPOs this week. Brazilian medical education group Afya (AFYA) raised $261 million, commanding a market value of $1.7 billion, and traded up 27% on its first day. Intercorp Financial (IFS), the leading provider of financial services in Peru, raised $414 million by offering 9 million shares at $46, commanding a $5.3 billion market cap, and had a flat first day with a 0% return. High-growth Chinese e-sports streaming platform DouYu International (DOYU) priced its $775 million 10% below the midpoint for a post-IPO market cap of $4 billion. The company saw revenue jump 94% in 2018 and margins improved significantly in the 1Q19. It finished the week down 9%.
Three biotechs IPO’d this week. Antibody biotech Genmab (GMAB) raised $506 million tocommand a market value of $11.6 billion; by market cap, it is the largest biotech to list in the US in over 20 years. Genmab ended the week up 2%. Rare disease biotechs Mirum Pharmaceuticals (MIRM) and Fulcrum Therapeutics (FULC) lagged behind, finishing the week down 10% and 22%, respectively.
Two SPACs entered the public market this week. Oaktree Capital’s Oaktree Acquisition (OAC.U), led by Managing Director of Oaktree's Value Equities team, went public with a $175 million IPO. Consumer-focused SPAC Conyers Park II Acquisition (CPAAU) completed its $400 million IPO, making it the second largest SPAC of 2019, behind Churchill Capital’s $600 million IPO in June.
The highly-leveraged restructured radio operator iHeartMedia (IHRT) returned to the public market, completing its Nasdaq direct listing on Thursday. Based on the company’s Wednesday close on the OTC Pink, its market cap at the time of its listing was roughly $1.1 billion. It finished this week down 1%.
| 4 Filings During the Week of July 15th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Silver Spike Acquisition (SSPKU) | $250M | Consumer Discretionary | Credit Suisse |
| Blank check company targeting the cannabis industry. | |||
| CrossFirst Bankshares (CFB) | $100M | Financials | KBW |
| Kansas bank with seven full-service locations across four states. | |||
| Oportun Financial (OPRT) | $50M | Financials | Barclays |
| Provides loans to low and moderate income consumers with limited credit history. | |||
| Thunder Bridge II (THBRU) | $300M | SPAC | Morgan Stanley |
| Second blank check company led by Gary Simanson targeting the fintech industry. | |||
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Two companies and two SPACs submitted initial filings this week. CrossFirst Bankshares (CFB), a Kansas bank with seven full-service locations across four states, filed for a $100 million IPO. Personal lender Oportun Financial (OPRT), which focuses on low and middle income consumers with limited credit history, filed for a $50 million IPO.
Gary Simanson’s second SPAC Thunder Bridge Acquisition II (THBRU) filed for a $300 million IPO. The filing came less than a week after Thunder Bridge Acquisition (RPAY), which IPO’d in June 2018, announced that it had completed its acquisition of payment facilitator REPAY. Cannabis SPAC Silver Spike Acquisition (SSPKU) filed for a $250 million IPO.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/18/19, the Renaissance IPO Index was up 41.0% year-to-date, while the S&P 500 had a gain of 20.8%. 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 12.2% year-to-date, while the ACWX was up 13.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
