Updated Monday, 7/13.
Nine IPOs and one SPAC plan to raise $1.5 billion in the week ahead, led by health insurance marketplace GoHealth (GOCO).
More deals could join the IPO calendar in the week ahead, including Apple workflow software provider Jamf (JAMF.RC) and environmental remediation company Montrose Environment (MEG).
Founder-led and backed by Centerbridge Partners, GoHealth (GOCO) plans to raise $751 million at a $6 billion market cap. Fast-growing and profitable, the company primarily focuses on the large and growing Medicare Advantage market. Close peer SelectQuote's (SLQT) May IPO was well received, though it has traded off slightly in the aftermarket.
Relay Therapeutics (RLAY), a Phase 1 biotech developing therapies for solid tumors, plans to raise $250 million at a $1.5 billion market cap. The company's lead candidate began a Phase 1 trial for advanced solid tumors in the 1Q20. However, the company's drug discovery platform, Dynamo, relies on the use of a D. E. Shaw Research supercomputer.
Cloud banking software provider nCino (NCNO) plans to raise $217 million at a $2.8 billion market cap. Spun out of Live Oak (NYSE: LOB) in 2011, nCino has a track record of strong revenue growth and a sticky customer base. However, it is unprofitable, with losses expected to continue, and high implementation costs have weighed on its gross margin.
Specialty casualty insurer Trean Insurance (TIG) plans to raise $150 million at a market cap of $716 million. The company operates primarily in the $54 billion workers' compensation insurance market. While its loss ratio improved in the 1Q20, the company saw a spike in its expense ratio, and its return on equity declined.
Phase 1 oncology biotech ALX Oncology (ALXO) plans to raise $128 million at a market cap of $605 million. The company's lead product candidate, ALX148, is a next-generation CD47 blocking therapeutic that is currently in a Phase 1b trial in combination with rituximab for non-Hodgkin's lymphoma.
Berkeley Lights (BLI), which provides a drug discovery platform, plans to raise $126 million at a $1.2 billion market cap. The company's Berkeley Lights Platform provides an advanced environment for rapid functional characterization of single cells at scale, with advanced automated systems that analyze live cells using proprietary consumables and application and workflow software to deliver robust single cell data.
Phase autoimmune disease biotech Pandion Therapeutics (PAND) plans to raise $94 million at a $451 million market cap. The company's lead candidate, PT101, is a combination of an interleukin-2 mutein effector module with a protein backbone designed to selectively expand regulatory T cells without activating proinflammatory cells.
Renalytix AI (RNLX), which is commercializing diagnostic tests for kidney disease, plans to raise $78 million at a $516 million market cap. The company's KidneyIntelX test for chronic kidney disease received a CPT code in October 2019 from the American Medical Association, and Medicare national pricing set at $950 per reportable test in January 2020.
Wound treatment device maker ACell (ACLL) plans to raise $75 million at a $366 million market cap. The company's urinary bladder matrix (UBM) product is designed to help manage the healing and scarring of traumatic, surgical and chronic wounds, burns, hernias, and other ailments which require soft tissue reenforcement.
PTK Acquisition (PTK.U), a blank check company formed by Chinese semiconductor veterans and dealmakers targeting a tech business, plans to raise $100 million at a market cap of $125 million. The company is led by CEO Peter Kuo, a co-founding Partner at Canyon Bridge Capital Partners, and CFO Timothy Chen, the CEO of VIA China.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| nCino (NCNO) Wilmington, NC |
$217M $2,780M |
$28 - $29 7,625,000 |
BofA Barclays |
| Offers an end-to-end digital banking platform for financial institutions. | |||
| GoHealth (GOCO) Chicago, IL |
$751M $5,957M |
$18 - $20 39,500,000 |
Goldman BofA |
| Medicare-focused health insurance marketplace. | |||
| Relay Therapeutics (RLAY) Cambridge, MA |
$250M $1,476M |
$16 - $18 14,700,000 |
JP Morgan Goldman |
| Phase 1 biotech developing precision small molecule therapies for solid tumors. | |||
| Trean Insurance (TIG) Wayzata, MN |
$150M $716M |
$13 - $15 10,714,286 |
JP Morgan Evercore ISI |
| Specialty casualty insurer in the US focused on workers' compensation. | |||
| ACell (ACLL) Columbia, MD |
$75M $366M |
$14 - $16 5,000,000 |
UBS Barclays |
| Makes medical devices for wounds and soft tissue surgical defects. | |||
| ALX Oncology Holdings (ALXO) Burlingame, CA |
$128M $605M |
$15 - $17 8,000,000 |
Jefferies Credit Suisse |
| Phase 1 immuno-oncology biotech developing CD47 pathway-blocking therapies. | |||
| Berkeley Lights (BLI) Emeryville, CA |
$126M $1,161M |
$16 - $18 7,400,000 |
JP Morgan Morgan Stanley |
| Provides a single cell manipulation platform for drug discovery and development. | |||
| Pandion Therapeutics (PAND) Watertown, MA |
$94M $451M |
$16 - $18 5,500,000 |
Goldman Morgan Stanley |
| Phase 1 biotech developing engineered T cells for autoimmune diseases. | |||
| Renalytix AI (RNLX) Cardiff, United Kingdom |
$78M $516M |
$14.22 5,500,000 |
JP Morgan Stifel |
| Commercializing AI-powered diagnostic tests for kidney disease. | |||
| PTK Acquisition (PTK.U) Los Angeles, CA |
$100M $125M |
$10 10,000,000 |
Chardan |
| Blank check company formed by Chinese semiconductor veterans and dealmakers targeting a tech business. | |||
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Street research is expected for five companies. On Monday, 7/13: Royalty Pharma (RPRX). On Tuesday, 7/14: Forma Therapeutics (FMTX), Genetron Holdings (GTH), and Repare Therapeutics (RPTX). On Wednesday, 7/15: Progenity (PROG).
Lock-up periods will be expiring for four companies on Wednesday, 7/15: I-Mab Biopharma (IMAB), LIZHI (LIZI), Phoenix Tree Holdings (DNK), and Velocity Financial (VEL).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/9/20, the Renaissance IPO Index was up 43.8% year-to-date, while the S&P 500 was down 2.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 27.4% year-to-date, while the ACWX was down 8.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
