Two of the largest-ever biotech IPOs by market cap are scheduled for the week ahead. They are joined by an Illinois bank. The three deals plan to raise a combined $550 million.
Germany-based BioNTech (BNTX) is targeting $251 million at a fully diluted market cap of $4.45 billion. That would make it the third-largest development-stage biotech ever to list in the US, behind July's Genmab (GMAB), and December 2018's Moderna (MRNA). The company's extensive pipeline includes mRNA therapeutics, engineered cell therapies, antibodies, and small molecule immunomodulators. Its lead mRNA candidate is being co-developed with Genentech in a Phase 2 trial for melanoma, with topline data expected in the 1H20. To date, BioNTech has raised $1.3 billion privately, most recently $324 million in August 2019.
Infectious disease biotech Vir Biotechnology (VIR) plans to raise $150 million at a $2.4 billion market cap. The company’s pipeline consists of five product candidates targeting hepatitis B virus, influenza A, HIV, and tuberculosis. Backed by ARCH Venture, the company is collaborating with Alnylam Pharmaceuticals to develop siRNA candidate VIR-2218 for hep B, currently in Phase 1/2.
Bloomington, IL-based bank HBT Financial (HBT) is raising $149 million at a market cap of $474 million, in the year's largest US-based bank by IPO proceeds. Operating as Heartland Bank, HBT has 64 branches spread across central and northeastern Illinois. The company generated adjusted net income of $25 million in the 1H19, with an ROTCE of 21.2% and an efficiency ratio of 54%; it plans $0.15 quarterly dividend (3.3% yield).
Potential launches this week include Post protein-supplement spinoff Bellring Brands (BRBR), commercial-stage biotech Innate Pharma (IPHA), and insurance distributor BRP Group (BRP).
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| BioNTech (BNTX) Mainz, Germany |
$251M $4,453M |
$18 - $20 13,200,000 |
JP Morgan BofA ML |
| German biotech developing individualized immunotherapies for cancer. | |||
| HBT Financial (HBT) Bloomington, IL |
$149M $474M |
$17 - $19 8,300,000 |
KBW JP Morgan |
| Family-owned bank with 64 branches in central and northeastern Illinois. | |||
| Vir Biotechnology (VIR) San Francisco, CA |
$150M $2,416M |
$20 - $22 7,142,858 |
Goldman JP Morgan |
| Phase 2 biotech developing immunologic therapies for infectious diseases. | |||
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The following IPOs are expected to price this week:
BioNTech (BNTX), a German biotech developing individualized immunotherapies for cancer, plans to raise $251 million by offering 13.2 million ADSs at a price range of $18.00 to $20.00. At the midpoint of the proposed range, BioNTech would command a fully diluted market value of $4.5 billion. BioNTech, which was founded in 2008, booked $136 million in sales over the last 12 months. The Mainz, Germany-based company plans to list on the Nasdaq under the symbol BNTX. J.P. Morgan is the lead bookrunner on the deal.
HBT Financial (HBT), a family-owned bank with 64 branches in central and northeastern Illinois, plans to raise $149 million by offering 8.3 million shares at a price range of $17.00 to $19.00. At the midpoint of the proposed range, HBT Financial would command a market value of $474 million. HBT Financial, which was founded in 1920, booked $163 million in revenue over the last 12 months. The Bloomington, IL-based company plans to list on the Nasdaq under the symbol HBT. Keefe Bruyette Woods is the lead bookrunner on the deal.
Vir Biotechnology (VIR), a Phase 2 biotech developing immunologic therapies for infectious diseases, plans to raise $150 million by offering 7.1 million shares at a price range of $20.00 to $22.00. At the midpoint of the proposed range, Vir Biotechnology would command a market value of $2.4 billion. Founded in 2016 the San Francisco, CA-based company plans to list on the Nasdaq under the symbol VIR. Goldman Sachs is the lead bookrunner 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 10/3/19, the Renaissance IPO Index was up 21.9% year-to-date, while the S&P 500 had a gain of 16.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and VICI Properties (VICI). The Renaissance International IPO Index was up 12.1% year-to-date, while the ACWX was up 9.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
