Eight IPOs and six SPACs entered public markets this past week, led by nCino (NCNO), which soared 195% in the biggest first-day pop for a US tech company in nearly 20 years.
Cloud banking software provider nCino (NCNO) upsized and priced above the upwardly revised range to raise $250 million at a $3.0 billion market cap. Fast growing and unprofitable, the company boasts long contracts and a sticky customer base, which includes global financial institutions such as Bank of America and Barclays. Following its record-breaking first day of trading, nCino finished the week up 195%.
Digital cell biology company Berkeley Lights (BLI) upsized and priced above the upwardly revised range to raise $178 million at a $1.5 billion market cap. Berkeley Lights provides a single cell manipulation platform for drug research, and its customers include eight of the world’s top ten biopharmas. The company has demonstrated historically strong growth, though it has been hampered by the coronavirus pandemic. Berkeley Lights finished up 198%.
In the week's largest deal, Medicare-focused insurance marketplace GoHealth (GOCO) upsized and priced above the range to raise $914 million at a $6.7 billion market cap. Fast-growing with improving margins, the company went public at a slight discount to close peer SelectQuote (SLQT), which has traded down in the past month. GoHealth opened strong but finished below issue on its first day. It finished the week down -7%.
Phase 1 solid tumor biotech Relay Therapeutics (RLAY) upsized its offering and priced above the range to raise $400 million at a $1.8 billion market cap. Relay has a collaboration with D.E. Shaw Research and $300 million in backing from SoftBank Vision Fund, and expects its post-IPO cash balance to last into 2023. The company finished up 75%.
Trean Insurance (TIG), a specialty casualty insurer focused on workers' compensation, priced at the high end to raise $161 million at a $767 million market cap. The company has achieved double-digit growth for its gross written premiums and strong ROE, though workers’ comp premium rates have fallen recently. Trean finished up 3%.
ALX Oncology (ALXO), a Phase 1 immuno-oncology biotech, upsized and priced above the range to raise $162 million at a $730 million market cap. The company’s lead candidate ALX148 has been dosed in over 150 patients in ongoing Phase 1b trials, and its post-IPO cash is expected to last through at least the next 36 months. ALX finished up 58%.
Pandion Therapeutics (PAND), a Phase 1 biotech developing T-cells for autoimmune diseases upsized and priced at the high end to raise $135 million at a $513 million market cap. The company’s lead candidate is in a Phase 1a trial and is expected to begin a Phase 1b/2a trial for ulcerative colitis in early 2021. It has two additional candidates in IND-enabling development. Pandion finished up 1%
Renalytix AI (RNLX), which is commercializing diagnostic tests for kidney diseases, raised $74 million at a $490 million market cap, pricing below the as-converted last close of its shares on London's AIM board (RENX). The company's test for chronic kidney disease was granted breakthrough device designation, and it is seeking marketing authorization from the FDA. Renalytix finished flat.
Six SPACs went public this past week. Artius Acquisition (AACQU) raised $630 million, HPX Corp (HPX.U) raised $220 million, D8 Holdings (DEH.U) raised $300 million, Malacca Straights Acquisition (MLACU) raised $125 million, Deerfield Healthcare Technology Acquisitions (DFHTU) raised 125 million, and PTK Acquisition (PTK.U) raised $100 million.
| 14 IPOs During the Week of July 13th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 07/17 |
| Berkeley Lights (BLI) | $178M | $1,534M | 29% | +198% | +198% |
| Provides a single cell manipulation platform for drug discovery and development. | |||||
| nCino (NCNO) | $250M | $3,041M | 35% | +195% | +139% |
| Offers an end-to-end digital banking platform for financial institutions. | |||||
| Relay Therapeutics (RLAY) | $400M | $1,849M | 18% | +75% | +120% |
| Phase 1 biotech developing precision small molecule therapies for solid tumors. | |||||
| ALX Oncology (ALXO) | $162M | $730M | 19% | +58% | +58% |
| Phase 1 immuno-oncology biotech developing CD47 checkpoint inhibitors. | |||||
| Trean Insurance (TIG) | $161M | $767M | 7% | +3% | +11% |
| Specialty casualty insurer in the US focused on workers' compensation. | |||||
| Deerfield HealthTech Acq. (DFHTU) | $125M | $156M | 0% | +6% | +6% |
| Third healthcare-focused blank check company formed by Deerfield Management and Robert Barasch. | |||||
| Artius Acquisition (AACQU) | $630M | $761M | 0% | +4% | +4% |
| Blank check company formed by Artius Capital and the former CEO of Worldpay targeting the tech sector. | |||||
| HPX Corp. (HPX.U) | $220M | $270M | 0% | +2% | +2% |
| Blank check company targeting a business in Brazil. | |||||
| GoHealth (GOCO) | $914M | $6,668M | 11% | -7% | +1% |
| Medicare-focused health insurance marketplace. | |||||
| Pandion Therapeutics (PAND) | $135M | $513M | 6% | +1% | +1% |
| Phase 1 biotech developing engineered T cells for autoimmune diseases. | |||||
| D8 Holdings (DEH.U) | $300M | $363M | 0% | +0% | +0% |
| Blank check company targeting a global consumer brand. | |||||
| Malacca Straits Acq. (MLACU) | $125M | $156M | 0% | +0% | +0% |
| Blank check company targeting a business in Southeast Asia. | |||||
| Renalytix AI (RNLX) | $74M | $490M | 0% | +0% | +0% |
| Commercializing AI-powered diagnostic tests for kidney disease. | |||||
| PTK Acquisition (PTK.U) | $100M | $125M | 0% | n/a | +0% |
| Blank check company formed by Chinese semiconductor veterans and dealmakers targeting a tech business. | |||||
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Five IPOs submitted initial filings. Cloud-based ecommerce platform BigCommerce (BIGC) filed to raise $100 million, Phase 1/2 gene therapy biotech Freeline Therapeutics (FRLN) filed to raise $100 million, diversified retail REIT NetSTREIT (NTST) filed to raise $100 million, solid tumor biotech Checkmate Pharmaceuticals (CMPI) filed to raise $75 million, and medical device manufacturer Acutus Medical (AFIB) filed to raise $75 million.
Seven SPACs submitted initial filings. Michael Klein's fourth SPAC Churchill Capital Corp IV (CCIV.U) filed to raise $1 billion, CC Capital and Neuberger Berman's second SPAC CC Neuberger Principal Holdings II (CCNP.RC) filed to raise $600 million, tech SPAC E.Merge Technology Acquisition (ETACU) filed to raise $500 million, TMT SPAC BowX Acquisition (BOWXU) filed to raise $350 million, Yucaipa Companies' SPAC Yucaipa Acquisition (YCAQ.RC) filed to raise $300 million, TMT SPAC Holicity (HOLUU) filed to raise $250 million, and biopharma SPAC Health Sciences Acquisition 2 (HSAQ) filed to raise $125 million.
| 12 Filings During the Week of July 13th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| BowX Acquisition (BOWXU) | $350M | SPAC | UBS |
| Blank check company formed by Bow Capital Management to acquire a TMT business. | |||
| Checkmate Pharmaceuticals (CMPI) | $75M | Health Care | BofA |
| Clinical stage immuno-oncology biotech developing therapies for solid tumors. | |||
| Freeline Therapeutics (FRLN) | $100M | Health Care | JP Morgan |
| Phase 1/2 biotech developing gene therapies for rare diseases. | |||
| Health Sciences Acq. 2 (HSAQ) | $125M | SPAC | Chardan |
| Second blank check company formed by RTW Investments to acquire a biopharma or medtech business. | |||
| Holicity (HOLUU) | $250M | SPAC | Deutsche Bank |
| Blank check company focused on acquiring a TMT business. | |||
| NetSTREIT (NTST) | $100M | Real Estate | Wells Fargo |
| Diversified retail REIT focused on the central United States. | |||
| Yucaipa Acquisition (YCAQ.RC) | $300M | SPAC | Citi |
| Blank check company formed by private equity firm The Yucaipa Companies. | |||
| Acutus Medical (AFIB) | $75M | Health Care | JP Morgan |
| Manufactures devices for electrophysiological mapping to treat arrhythmias. | |||
| CC Neuberger Principal II (CCNP.RC) | $600M | SPAC | Credit Suisse |
| Second blank check company formed by CC Capital and Neuberger Berman. | |||
| Churchill Capital Corp IV (CCIV.U) | $1,000M | SPAC | Citi |
| Fourth blank check company founded by dealmaker and former Citi executive Michael Klein. | |||
| BigCommerce (BIGC) | $100M | Technology | Morgan Stanley |
| Provides a cloud-based platform for businesses to create online stores. | |||
| E.Merge Technology Acq (ETACU) | $500M | SPAC | Cantor Fitz. |
| Blank check company led by the former CEOs of Kodak, EFI, and SAP Concur targeting a tech business. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/16/20, the Renaissance IPO Index was up 37.2% year-to-date, while the S&P 500 was down 0.5%. 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 22.4% year-to-date, while the ACWX was down 6.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
