August has come to a close, which means Renaissance Capital’s Fall 2019 US IPO Preview is here. While there were no pricings this week, the IPO calendar will soon fill up after the holiday weekend. Our Preview highlights 30 upcoming deals, including high-profile filers The We Company (WE), SmileDirectClub (SDC), and recent addition Peloton Interactive (PTON), which filed this week.
Peloton, which sells interactive fitness equipment and subscription-based memberships, filed to raise $500 million in its initial public offering. The exercise pioneer’s current offerings include tech-enabled bikes and treadmills, and it has 511,000 paying subscribers and 1.4 million members. In the fiscal year ended June 30, 2019, Peloton grew revenue 110% to $915 million, but the company also saw its adjusted EBITDA loss more than double to -$71 million.
Viela Bio (VIE), a late-stage biotech developing antibodies licensed from AstraZeneca, also filed this week. Its $150 million deal size makes it the largest biotech on file. In February 2018, the company acquired assets from AstraZeneca’s biologics division MedImmune for $142 million, including five molecules which constitute its current product pipeline. The FDA is currently reviewing the company’s Biologics License Application for lead candidate inebilizumab, with potential approval in the 1H20. To date, Viela Bio has raised $388 million in private funding rounds.
| 2 Filings During the Week of August 26th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Viela Bio (VIE) | $150M | Health Care | Goldman |
| Late-stage biotech developing antibodies licensed from AstraZeneca. | |||
| Peloton (PTON) | $500M | Consumer Discretionary | Goldman |
| Sells connected home fitness equipment and monthly class subscriptions. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/29/19, the Renaissance IPO Index was up 32.9% year-to-date, while the S&P 500 had a gain of 16.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 10.2% year-to-date, while the ACWX was up 8.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank Corp.
