Just one SPAC priced in the shortened holiday week, but the IPO market still saw plenty of other activity. Five companies joined the IPO calendar, three company submitted initial filings, and another disclosed updated financials.
On Tuesday, record label giant Warner Music (WMG) set terms for a $1.7 billion IPO, set to be the largest of 2020 thus far, and fibrosis biotech Pliant Therapeutics (PLRX) set terms for a $90 million IPO. On Wednesday, the year’s first software IPO ZoomInfo (ZI) set terms for a $757 million offering, and on Friday, GenScript immuno-oncology spin-off Legend Biotech (LEGN) set terms for a $350 million IPO and Chinese mobile data marketplace uCloudlink (UCL) set terms for a $50 million US IPO.
Blank check company Foley Trasimene Acquisition (WPFU), the second blank check company formed by financial services veteran Bill Foley, upsized its offering to raise $900 million, tied for the second largest SPAC of all time. The SPAC intends to target a business in the financial technology or business process outsourcing industry.
| 1 IPO During the Week of May 25th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 05/29 |
| Foley Trasimene Acq. (WPFU) | $900M | $1,088M | 0% | +2% | +3% |
| Second blank check company formed by financial services veteran Bill Foley. | |||||
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Three companies submitted initial filings. Hematology and oncology biotech Forma Therapeutics (FMTX) filed to raise $150 million, and prenatal molecular test maker Progenity (PROG) and gene therapy biotech Repare Therapeutics (RPTX) both filed to raise $100 million.
| 3 Filings During the Week of May 25th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Forma Therapeutics (FMTX) | $150M | Health Care | Jefferies |
| Phase 1 biotech company developing therapies for hematologic diseases and cancers. | |||
| Repare Therapeutics (RPTX) | $100M | Health Care | Morgan Stanley |
| Preclinical biotech developing gene therapies for solid tumors. | |||
| Progenity (PROG) | $100M | Health Care | Piper Sandler |
| Sells in vitro molecular tests for prenatal and disease screening. | |||
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Building products manufacturer AZEK (AZEK) is keeping its IPO plans moving, disclosing updated financials in its first amendment since its initial filing in early February.
On the international IPO front, JDE Peet’s Coffee returned to public markets this past week, completing the largest European IPO of 2020 thus far by raising $2.6 billion on the Euronext Amsterdam.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/28/20, the Renaissance IPO Index was up 13.3% year-to-date, while the S&P 500 was down 6.2%. 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 6.3% year-to-date, while the ACWX was down 14.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.
