Updated Monday, 5/11.
Just one IPO is on the calendar for the week ahead, but that could quickly change. In the past month, five companies have launched and priced IPOs within one week. US grocer Albertsons (ACI) and Chinese crypto mining company Ebang International (EBON) are primed for potential launches.
The IPO market is showing signs of life. Last week, three companies went public in the US, the busiest week for IPOs since February. The VIX Volatility Index also fell below 30 for the first time since February. The IPO Index is up more than 50% from its March low, with a year-to-date gain of more than 5%. While the IPO market remains off-limits for many companies, the ice has begun to thaw, especially for “quarantine-friendly” IPOs.
Swiss oncology biotech ADC Therapeutics (ADCT) plans to raise $125 million at a $1.1 billion market cap. The biotech is developing antibody drug conjugates, and its pipeline consists of seven candidates targeting hematological malignancies and solid tumors. It was previously slated to raise $200 million at a $1.8 billion valuation in October 2019, but withdrew its deal due to adverse market conditions.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| ADC Therapeutics (ADCT) Épalinges, Switzerland |
$125M $1,087M |
$16 - $18 7,355,000 |
Morgan Stanley BofA |
| Swiss Phase 2 biotech developing next-gen antibody drug conjugates for difficult cancers. | |||
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Albertsons Companies (ACI) is on file for an IPO we estimate could raise $2 billion. The large US grocery chain recently filed updated financial results, showing impressive growth since March.
Ebang (EBON) is on file to raise $100 million. It is the third largest maker of Bitcoin computing hardware in the world, behind top competitors Bitmain Technologies and Canaan (CAN). The latter, which completed a US IPO in November 2019, recently rallied more than 100% since mid-March, though it still trades well below its offer price.
| Swiss Biotech, US Grocery Giant, and Chinese Crypto Miner Primed for Monday Launches | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Albertsons (ACI) | $2,000M | Consumer Staples | BofA |
| US grocer operating under Albertsons, Safeway, and other banners. | |||
| ADC Therapeutics (ADCT) | $100M | Health Care | Morgan Stanley |
| Swiss Phase 2 biotech developing next-gen antibody drug conjugates for difficult cancers. | |||
| Ebang International (EBON) | $100M | Technology | AMTD Global |
| Makes equipment for cryptocurrency mining in China. | |||
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.
Lock-up periods will be expiring for three companies. On Sunday, 5/10: 89bio (ETNB). On Monday, 5/11: YayYo (YAYO). On Wednesday, 5/13: TFI International (TFII).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/7/20, the Renaissance IPO Index was up 4.5% year-to-date, while the S&P 500 was down 10.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and DocuSign (DOCU). The Renaissance International IPO Index was down 2.1% year-to-date, while the ACWX was down 19.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
