Five biotechs, two medical device makers, a solar panel mounting manufacturer, and a Chinese retailer are scheduled to raise $2.0 billion in the week ahead.
Several companies could join the IPO calendar early in the week, including leading cybersecurity brand McAfee (MCFE) and Vista-backed software maker Datto Holding (MSP), which are on file for estimated $2 billion and $400 million IPOs, respectively.
Array Technologies (ARRY), which makes solar panel mounting systems that track the sun, plans to raise $675 million at a $2.5 billion market cap. Fast-growing and profitable, Array is the #2 provider of solar trackers in the US. It has shipped over 21 gigawatts of its trackers as of 6/30/20, with half of its 2019 revenue came from its five largest customers. Sponsor Oaktree and others are selling 79% of the deal, with the remaining portion being used to partially reduce debt taken on to pay a $590 million special dividend to insiders.
Chinese discount retailer Miniso Group Holding (MNSO) plans to raise $532 million at a $5.7 billion market cap. The company’s network consists of over 4,200 stores, primarily in China, where it offers approximately 8,000 core SKUs across 11 major categories. While revenue fell in the FY20 due to the negative impact of COVID-19, gross margin increased, and the company remained profitable on an EBIT basis.
Australian retinal disease biotech Opthea (OPT) plans to raise $161 million at a $771 million market cap. The company’s sole clinical candidate is a biologic designed for the treatment of ophthalmic diseases. The company intends to initiate two pivotal Phase 3 trials for wet AMD in the 1H21, with topline data expected in 2023.
Viral and liver disease biotech Aligos Therapeutics (ALGS) plans to raise $150 million at a $580 million market cap. The company's lead focus is to develop a functional cure for Chronic Hepatitis B (CHB). Its most advanced candidate, an S-antigen Transport-inhibiting Oligonucleotide Polymers, is currently in a Phase 1 proof of concept trial in New Zealand.
CNS biotech Praxis Precision Medicines (PRAX) plans to raise $126 million at a $643 million market cap. The company’s most advanced candidates are in Phase 2 for major depressive disorder/perimenopausal depression and essential tremor. It plans to initiate a Phase 2/3 trial for its lead candidate in the US and Australia in the 4Q20, with topline data expected in the 2H21.
Medical device maker Spinal Elements Holdings (SPEL) plans to raise $108 million at a $382 million market cap. The company offers a comprehensive product portfolio that can address approximately 95% of spinal surgery procedures performed worldwide as of 2018. Revenue declined slightly in the 1H20, due to COVID-19-related delays of elective spinal procedures.
Hearing aid manufacturer Eargo (EAR) plans to raise $100 million at a $616 million market cap. Eargo believes its hearing aids are the first and only virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I device for the treatment of hearing loss. The company has sold over 42,000 hearing aid systems, net of returns, as of June 30, 2020.
Exosome biotech Codiak BioSciences (CDAK) plans to raise $83 million at a $309 million market cap. Codiak uses its engEx platform to engineer novel exosome therapies. The company is targeting solid tumors with its lead program, which it believes has demonstrated encouraging preclinical activity. Codiak expects to initiate a Phase 1/2 trial in the 2H20, with preliminary data expected by mid-2021.
Ophthalmology biotech Tarsus Pharmaceuticals (TARS) plans to raise $80 million at a $324 million market cap. The company's lead candidate is being developed Demodex blepharitis. To date, the company has completed four Phase 2 trials, all of which met their endpoints. It commenced a Phase 2b/3 trial in September 2020 and intends to commence a Phase 3 trial in 2021
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Codiak BioSciences (CDAK) Cambridge, MA |
$83M $309M |
$14 - $16 5,500,000 |
Goldman Evercore ISI |
| Early stage biotech developing novel exosome therapeutics for cancers. | |||
| Array Technologies (ARRY) Albuquerque, NM |
$675M $2,540M |
$19 - $21 33,750,000 |
Goldman JP Morgan |
| Manufactures solar panel mounting systems that track the sun. | |||
| Miniso Group Holding (MNSO) Guangzhou, China |
$532M $5,718M |
$16.50 - $18.50 30,400,000 |
Goldman BofA |
| Chinese discount retailer selling branded lifestyle and home goods. | |||
| Spinal Elements Holdings (SPEL) Carlsbad, CA |
$108M $382M |
$13 - $15 7,700,000 |
Credit Suisse Baird |
| Develops spinal implants used in minimally invasive surgery. | |||
| Aligos Therapeutics (ALGS) South San Francisco, CA |
$150M $580M |
$14 - $16 10,000,000 |
JP Morgan Jefferies |
| Phase 1 biotech developing oligonucleotide therapies for viral and liver diseases. | |||
| Eargo (EAR) San Jose, CA |
$100M $616M |
$14 - $16 6,666,667 |
JP Morgan BofA |
| Manufactures differentiated hearing aid systems. | |||
| Jack Creek Investment (JCICU) New York, NY |
$300M $375M |
$10 30,000,000 |
JP Morgan |
| Blank check company formed by KSH Capital targeting a food or consumer business. | |||
| Opthea (OPT) South Yarra, Australia |
$161M $771M |
$17.26 9,300,000 |
Citi SVB Leerink |
| Australian Phase 3 biotech developing VEGF inhibitors for wet AMD. | |||
| Praxis (PRAX) Cambridge, MA |
$126M $643M |
$16 - $18 7,400,000 |
Cowen Evercore ISI |
| Phase 2 biotech developing therapies for CNS disorders using genetic insights. | |||
| Tarsus Pharmaceuticals (TARS) Irvine, CA |
$80M $324M |
$15 - $17 5,000,000 |
BofA Jefferies |
| Phase 3 biotech developing therapies for ophthalmic conditions. | |||
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Street research is expected for 15 companies. On Monday, 10/12: Outset Medical (OM), JFrog (FROG), Metacrine (MTCR), Snowflake (SNOW), StepStone Group (STEP), Amwell (AMWL), Broadstone Net Lease (BNL), Dyne Therapeutics (DYN), Pactiv Evergreen (PTVE), and Sumo Logic (SUMO). On Tuesday, 10/13: Athira Pharma (ATHA), BioVie (BIVI), COMPASS Pathways (CMPS), Unity Software (U), and Vitru (VTRU). The lock-up for Renalytix AI (RNLX) will expiring on Thursday, 10/15.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/8/20, the Renaissance IPO Index was up 77.2% year-to-date, while the S&P 500 was up 6.7%. 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 36.2% year-to-date, while the ACWX was down 2.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
