Five companies entered the public market this past week. The health clinic unicorn One Medical (ONEM) posted a 57.6% gain and was joined by titan of tin foil Reynolds Consumer Products (REYN), Black Diamond Therapeutics (BDTX), Arcutis Biotherapeutics (ARQT), and AnPac Bio-Medical Science (ANPC)
One Medical (ONEM) priced at the low end of the range to raise $245 million at a $1.95 billion market cap. The company which owns and operates a 77 clinic network of membership-based primary-care clinics expanded its gross margin and accelerated growth in the 9mo19.
In the largest household goods IPO ever, Reynolds (REYN) priced within the range at $26 to raise $1.2 billion at a market cap of $5.3 billion. The company has cut $126 million in costs in the past two years and 65% of 2018 sales were from products with #1 market share. Reynolds finished up 10%.
Oncology biotech Black Diamond Therapeutics (BDTX) priced above the range to raise $201 million at a market cap of $672 million. The Phase 1-ready biotech boasted a first day pop of 108% despite its very early stage and limited portfolio, and finished up 97%.
Late-stage dermatology biotech Arcutis Biotherapeutics (ARQT) priced its upsized deal at the high end of the range, raising $159 million ($50 million from existing shareholders) at a market cap of $657 million. The company’s leading candidate is currently in two pivotal Phase 3 trials for psoriasis, with topline results expected in 1H21. Arcutis finished up 28%
Chinese cancer screening provider AnPac Bio-Medical Science (ANPC) priced its downsized IPO at the low end of the range to raise $16 million at a market cap of $134 million. The challenging environment for Chinese issuers has carried into 2020, and AnPac finished down 16%.
| 5 IPOs During the Week of January 27th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 01/31 |
| Black Diamond Tx (BDTX) | $201M | $672M | 12% | +108% | +97% |
| Phase 1-ready biotech developing targeted kinase inhibitors for solid tumors. | |||||
| One Medical (ONEM) | $245M | $1,952M | -7% | +58% | +58% |
| Operates 77 membership-based health clinics under the One Medical brand. | |||||
| Arcutis Biotherapeutics (ARQT) | $159M | $657M | 6% | +28% | +28% |
| Phase 3 biotech developing topical therapies for common skin diseases. | |||||
| Reynolds Consumer (REYN) | $1,226M | $5,272M | -2% | +10% | +10% |
| Leading provider of household and kitchen products. | |||||
| AnPac Bio-Medical Science (ANPC) | $16M | $134M | -8% | -6% | -16% |
| Chinese provider of multi-cancer screening tests. | |||||
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Only two SPACs filed this week. The third SPAC founded by former Citi executive Michael Klein, Churchill Capital III (CCXX.U) filed to raise $600 million. Mr. Klein’s first SPAC Churchill Capital acquired Clarivate Analytics (CCC) in 2019. dMY Technolgy (DMYT.U) filed to raise $200 million and is looking to acquire a consumer technology business.
| 2 Filings During the Week of January 27th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| dMY Technology Group (DMYT.U) | $200M | SPAC | Goldman |
| Blank check company targeting a consumer internet or mobile app business. | |||
| Churchill Capital III (CCXX.U) | $600M | SPAC | Citi |
| Third blank check company founded by dealmaker and former Citi executive Michael Klein. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/30/20, the Renaissance IPO Index was up 6.9% year-to-date, while the S&P 500 had a gain of 1.6%. Renaissance Capital's IPO ETF (NYSE:IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was up 0.8% year-to-date, while the ACWX was down 1.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and SoftBank.
