Updated on 5/4/2020
Three IPOs and one SPAC are scheduled for the week ahead.
Internet gambling software provider GAN Limited (GAN) plans to raise $48 million at a $224 million fully diluted market cap after upsizing its deal by 57%. The London-based company has been focusing its efforts on US expansion, capitalizing on the country’s legalization of sports betting in 2018, and its largest customer is fantasy sports site FanDuel (46% of 2019 revenue). While larger than GAN, sports betting platform DraftKings (DKNG) recently went public via SPAC merger and is currently up 101%. GAN Limited is currently listed on London's AIM exchange under the symbol GAN. Adjusting for a four-for-one share exchange prior to the closing of its US IPO, GAN's as-converted last close was $11.49, above the proposed midpoint.
SPAC Live Oak Acquisition (LOAK.U) plans to raise $200 million at a market cap of $250 million. The SPAC is led by CEO Richard Hendrix and President Gary Wunderlich, the former CEOs of FBR and Nuven, respectively. Live Oak Acquisition intends on targeting a high growth business with an enterprise value between $500 million and $1.5 billion.
Phase 2 oncology biotech Ayala Pharmaceuticals (AYLA) plans to raise $50 million at a fully diluted market cap of $189 million. The company's lead candidate, AL101, is currently in a Phase 2 trial for recurrent or metastatic adenoid cystic carcinoma in patients with Notch pathway mutations.
Kingsoft Cloud (KC), the cloud services and infrastructure division of Chinese software franchise Kingsoft Group, plans to raise $425 million at a market cap of $3.4 billion. The company is the third largest internet cloud service provider in China.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| GAN (GAN) London, United Kingdom |
$48M $223M |
$6.50 - $8.50 6,380,000 |
B. Riley FBR |
| UK-based provider of internet gambling software. | |||
| Live Oak Acquisition (LOAK.U) Great Falls, VA |
$200M $250M |
$10 20,000,000 |
Jefferies |
| Blank check company led by the former CEOs of FBR and Nuveen targeting a growth business. | |||
| Ayala Pharmaceuticals (AYLA) Rehovot, Israel |
$50M $189M |
$14 - $16 3,333,334 |
Citi Jefferies |
| Phase 2 biotech developing small molecule therapies for aggressive cancers. | |||
| Kingsoft Cloud (KC) Beijing, China |
$425M $3,404M |
$16 - $18 25,000,000 |
JP Morgan UBS |
| Chinese cloud services and infrastructure provider being spun out of Kingsoft. | |||
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Following the IPO market’s slowest March and April in a decade, an uptick in activity in May is promising. Grocery giant Albertsons (ACI) had its earnings call on April 30 and noted a 34% increase in identical store sales during the first eight weeks of its FY20. Other “pandemic-proof” company, Bitcoin mining play Ebang International (EBON), is on file for potential May IPO. Following a string of successful biotech IPOs, oncology biotech Lantern Pharma (LTRN) is also in a good position to attempt an offering.
Street research is expected for Keros Therapeutics (KROS) on Sunday, 5/3.
Lock-up periods will be expiring for eight companies. On Sunday, 5/3: Q&K International Group (QK). On Tuesday, 5/5: Centogene (CNTG), Galera Therapeutics (GRTX), and Silvergate Capital (SI). On Wednesday, 5/6: CNS Pharmaceuticals (CNSP) and TELA Bio (TELA). On Thursday, 5/7: 36KR Holdings (KRKR) and ECMOHO (MOHO).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/30/20, the Renaissance IPO Index was down 0.2% year-to-date, while the S&P 500 was down 9.3%. 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 down 2.4% year-to-date, while the ACWX was down 18.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
