Renaissance Capital logo

US IPO Weekly Recap: Oncology biotech Aprea Therapeutics finishes on top in 4-IPO week

October 4, 2019
Weekly Recap

Even biotechs aren't immune to the newly-challenging IPO market. Six companies were scheduled to price IPOs this past week, but only four entered the public market; one biotech postponed while another - the largest - withdrew its IPO plans. All four priced at or below the midpoint. There was also a spike in initial filings, with eight companies and one SPAC entering the IPO pipeline.

The top performer this week was Phase 3 oncology biotech Aprea Therapeutics (APRE), which priced an $85 million upsized IPO at the midpoint. While the company’s lead candidate has yielded promising results thus far, its peers have underperformed. Aprea Therapeutics finished the week up 27%.

AstraZeneca spin-off Viela Bio (VIE) priced its IPO at the low end, raising $150 million at a $986 million valuation. The company’s lead candidate is nearing commercialization, but its target indication is extremely rare with roughly 10,000 patients in the US. Viela Bio finished the week up 22%.

Two companies broke issue on their first day of trading. Degenerative disease biotech Frequency Therapeutics (FREQ) downsized its share offering and priced at the bottom of the range to raise $84 million, roughly 17% less than anticipated. It finished the week down 4%. Georgia bank MetroCity Bankshares (MCBS) priced below the range to raise $26 million. It finished its first day nearly back at issue and continued to hover below its IPO price, finishing the week down 1%.

Of the six companies scheduled to go public, two deals were pulled; both companies cited market conditions. Late-stage oncology biotech Monopar Therapeutics (MNPR) postponed its $40 million IPO, while Swiss oncology biotech ADC Therapeutics (ADCT), which was targeting a $1.8 billion valuation, withdrew its deal entirely.

In other IPO news
On Monday, The We Company (WE) officially withdrew its IPO. Airbnb reportedly picked Morgan Stanley and Goldman to lead a direct listing in 2020. This past week, VCs held a conference promoting direct listings as an alternative to IPOs.


4 IPOs During the Week of September 30th, 2019
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 10/04
Aprea Therapeutics (APRE) $85M $335M 0% +37% +27%
Phase 3 biotech developing targeted therapies for cancer.
Viela Bio (VIE) $150M $986M -5% +23% +22%
Late-stage biotech developing antibodies licensed from AstraZeneca.
MetroCity Bankshares (MCBS) $26M $342M -13% +0% -1%
Georgia bank focused on serving Asian-American communities in the Eastern US and Texas.
Frequency Therapeutics (FREQ) $84M $426M -7% -2% -4%
Phase 2 biotech developing therapies for degenerative diseases.

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.


Despite regulatory uncertainty with both the Nasdaq and the Trump administration, three Chinese companies filed for US IPOs. Chinese online education platform Youdao (DAO), which is being spun out of NetEase, filed to raise $300 million. Fast-growing Chinese news site 36Kr Holdings (KRHO.RC) filed to raise $100 million, and Aesthetic Medical International Holdings (AIH), which provides aesthetic medical services in China, filed to raise $80 million.

Gene therapy biotech 4D Molecular Therapeutics (DDDD), autoimmune biotech Cabaletta Bio (CABA), and gastric disease biotech Phathom Pharmaceuticals (PHAT) all filed for $100 million IPOs. Eye disease biotech Oyster Point Pharma (OYST) filed to raise $85 million.

EnCap-backed Fortis Minerals (NRI), which owns oil and gas mineral royalty interests in the Southwestern  US, filed for an estimated $400 million IPO. Blank check company Galileo Acquisition (GLEO.U) filed to raise $100 to acquire a business in Western Europe with a clear North American growth strategy.

9 Filings During the Week of September 30th, 2019
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Oyster Point Pharma (OYST) $85M Health Care
Clinical stage biotech focused on developing therapies for ocular diseases.
Galileo Acquisition (GLEO.U) $100M SPAC EarlyBird
Blank check company targeting Western European businesses with strong North American growth strategies
36KR Holdings (KRHO.RC) $100M Technology Credit Suisse
Online media publisher focused on New Economy companies in China.
4D Molecular Therapeutics (DDDD) $100M Health Care Goldman
Developing targeted gene therapies for multiple diseases.
Aesthetic Medical (AIH) $80M Health Care Cantor Fitz.
Provides aesthetic medical treatments in China, Hong Kong, and Singapore.
Cabaletta Bio (CABA) $100M Health Care Morgan Stanley
Phase 1-ready biotech developing engineered T cell therapies for autoimmune diseases.
Fortis Minerals (NRI) $400M Energy Credit Suisse
EnCap-backed owner of oil and gas mineral royalty interests in the southwestern US.
Phathom Pharmaceuticals (PHAT) $100M Health Care Goldman
Phase 3 biotech developing novel therapies for gastrointestinal diseases.
Youdao (DAO) $300M Technology Citi
Chinese online education platform being spun out of NetEase.

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.


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.