The IPO market showed little activity, with no launches or pricings. The silver lining for IPO investors is thatthe IPO market tends to outperform following a shutdown. A few filings are keeping IPO market alive, as a Chinese issuer, a biotech, and a SPAC submitted initial filings.
Phase 1 biotech Keros Therapeutics (KROS) filed to raise $86 million. The company’s most advanced candidate KER-050, an engineered ligand trap being developed for treatment of low blood cell counts, yielded positive topline results in a Phase 1 trial for myelodysplastic syndrome (MDS) and myelofibrosis. It is expected to initiate a Phase 2 trial for MDS in the 1H20.
UTime (UTME) filed to raise $22 million. The Chinese company makes mobile devices and targets emerging markets such as India, South Asia, and Africa. The company is led by CEO Minfei Bao, who owns 97% of the pre-IPO shares.
Sustainable Opportunities Acquisition (SOAC.U), a SPAC targeting a sustainable industrial business, filed to raise $300 million. The blank check company is led by former GenOn Energy executive Scott Leonard and private equity veteran Scott Honour.
| 3 Filings During the Week of March 16th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| UTime (UTME) | $22M | Technology | ViewTrade |
| Chinese mobile phone and electronics manufacturer. | |||
| Sustainable Opp. Acq. (SOAC.U) | $300M | SPAC | Citi |
| Blank check company targeting an environmentally sustainable industrial business. | |||
| Keros Therapeutics (KROS) | $86M | Health Care | Jefferies |
| Phase 1/2 biotech developing therapies for blood and musculoskeletal disorders. | |||
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In other news, the most active auditor in the IPO market this quarter was PwC, and the most active law firm was Davis Polk. For full reports on the 1Q20’s auditors and law firms sign up for a free trial of IPO Pro.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/19/20, the Renaissance IPO Index was down 25.4% year-to-date, while the S&P 500 had a loss of 25.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Uber (UBER). The Renaissance International IPO Index was down 21.7% year-to-date, while the ACWX was down 31.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Adyen.
