Nine IPOs and five SPACs went public this past week, and one IPO postponed. New filing activity continued to pump the breaks as we near the election, with just one new IPO filing. SPAC activity continued unabated however as nine submitted initial filings.
The largest deal of the week, Array Technologies (ARRY) upsized and priced above the range to raise $1.0 billion at a $2.8 billion market cap. Sold to Oaktree in 2016, Array makes trackers used to rotate solar panels in ground-mounted utility-scale systems. The company is fast-growing and profitable, and it has an estimated 60% of the US tracker market. Though it sees a path to double revenue over the next few years, its growth strategy relies on penetrating new international markets. Array finished up 77%.
Eargo (EAR) upsized and price above the range to raise $141 million at a $764 million market cap. Unprofitable with strong growth, Eargo operates in the highly competitive hearing aid market, developing a differentiated device for the treatment of hearing loss. The company’s sales and gross margin have risen rapidly, though it has incurred high S&M expenses and customer returns. Eargo finished up 87%.
A leading Chinese discount retailer, Miniso Group (MNSO) priced above the range to raise $608 million at a $6.5 billion market cap. Backed by Tencent and Hillhouse Capital, the company has over 4,000 stores primarily in China, as well as overseas, though it now faces increasing competition in its markets. Miniso finished up 16%.
CNS biotech Praxis Precision Medicines (PRAX) priced above the range to raise $190 million at a $773 million market cap. The company is targeting an unmet need in the treatment of major depressive disorder, a challenging area of drug development. Its most advanced candidates are in Phase 2, with plans to initiate a Phase 2/3 trial for its lead candidate in the US and Australia in the 4Q20. Praxis finished up 46%.
Viral and liver disease biotech Aligos Therapeutics (ALGS) priced at the midpoint 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 sole clinical candidate, an S-antigen Transport-inhibiting Oligonucleotide Polymers, is currently in a Phase 1 proof of concept trial in New Zealand. Aligos finished down 1%.
Ophthalmology biotech Tarsus Pharmaceuticals (TARS) upsized and priced at the midpoint to raise $88 million at a $332 million market cap. Its lead candidate is being developed to treat Demodex blepharitis. The company has completed four Phase 2 trials and commenced a Phase 2b/3 trial in September 2020, with a Phase 3 trial planned for 2021. Tarsus finished up 29%.
Codiak BioSciences (CDAK) priced at the $15 midpoint to raise $83 million at a $309 million market cap, a down-round to its last venture funding. The company is developing novel exosome therapies, an area that is not yet well understood and presents some challenges. Targeting solid tumors, Codiak recently moved its two lead candidates into Phase 1 trials, with initial data due in late 2020 and early 2021. Codiak finished down 19%.
Immuno-oncology biotech Kiromic BioPharma (KRBP) priced at the low end to raise $15 million at an $88 million market cap. Kiromic's pipeline consists of four early-stage product candidates targeting blood cancers and solid tumors. The company expects to begin IND-enabling studies before the end of the year. Kiromic finished down 4%.
Australian-listed biotech Opthea (OPT) raised $128 million at a $604 million market cap in a warrants-attached offering. Its sole clinical candidate is a biologic designed for the treatment of ophthalmic diseases. It intends to initiate two pivotal Phase 3 trials for wet AMD in the 1H21, with topline data expected in 2023. Opthea finished down 9%.
Medical device maker Spinal Elements Holdings (SPEL) postponed its $108 million IPO. While the pandemic caused an industry-wide sales decline for surgical device makers, Spinal Elements also experienced slowing growth in 2019, paired with steep losses and fierce competition.
While not counted in our IPO stats, Boston-based Eastern Bankshares (EBC) began trading on the Nasdaq this week after raising $1.8 billion in a subscription offering that it completed in connection with its conversion from a mutual holding company to a stock corporation.
Five SPACs entered the public market, led by Pacific Century and Thiel Capital’s Bridgetown Holdings (BTWNU), which raised $550 million to acquire a Southeast Asian business in the "new economy" sectors. Three SPACs completed proposed mergers this past week: packaged food maker Tattooed Chef (TTCF), documentary streaming service CuriosityStream (CURI), and auto e-commerce platform Shift Technologies (SFT).
| 14 IPOs During the Week of October 12th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 10/16 |
| Eargo (EAR) | $141M | $764M | 20% | +87% | +87% |
| Makes discreet and rechargeable hearing aid systems. | |||||
| Array Technologies (ARRY) | $1,045M | $2,805M | 10% | +66% | +77% |
| Manufactures solar panel mounting systems that track the sun. | |||||
| Praxis (PRAX) | $190M | $773M | 12% | +46% | +46% |
| Phase 2 biotech developing therapies for CNS disorders using genetic insights. | |||||
| Tarsus Pharmaceuticals (TARS) | $88M | $332M | 0% | +29% | +29% |
| Phase 3 biotech developing therapies for ophthalmic conditions. | |||||
| Miniso Group Holding (MNSO) | $608M | $6,535M | 14% | +4% | +16% |
| Chinese discount retailer selling branded lifestyle and home goods. | |||||
| Bridgetown Holdings (BTWNU) | $550M | $688M | 0% | +0% | +0% |
| Blank check company formed by Pacific Century and Thiel Capital targeting "new economy" sectors in Southeast Asia. | |||||
| Turmeric Acquisition (TMPMU) | $85M | $110M | 0% | +0% | +0% |
| Blank check company formed by MPM Capital targeting the biotech industry. | |||||
| 5 01 Acquisition (FVAM) | $80M | $104M | 0% | +0% | +0% |
| Blank check company formed by 5AM Ventures targeting the biotech industry. | |||||
| Spartacus Acquisition (TMTSU) | $200M | $263M | 0% | +0% | -1% |
| Blank check company targeting a TMT business. | |||||
| Aligos Therapeutics (ALGS) | $150M | $580M | 0% | -1% | -1% |
| Phase 1 biotech developing oligonucleotide therapies for viral and liver diseases. | |||||
| Motion Acquisition (MOTNU) | $115M | $148M | 0% | -1% | -1% |
| Blank check company formed by the former CEO of Fleetmatics targeting the telematics industry. | |||||
| Kiromic BioPharma (KRBP) | $15M | $88M | -8% | -4% | -4% |
| Preclinical biotech developing immunotherapies for blood cancers and solid tumors. | |||||
| Opthea (OPT) | $128M | $604M | -22% | -9% | -9% |
| Australian Phase 3 biotech developing VEGF inhibitors for wet AMD. | |||||
| Codiak BioSciences (CDAK) | $83M | $309M | 0% | -19% | -19% |
| Early stage biotech developing novel exosome therapeutics for cancers. | |||||
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One IPO and nine SPACs submitted initial filings. Cancer biotech IN8bio (INAB) filed to raise $86 million. European investment group Investindustrial’s Investindustrial Acquisition (IIAC.U) filed to raise $350 million. Sustainability SPAC Natural Order Acquisition (NOACU) and Niccolo de Masi and Harry You’s third SPAC dMY Technology Group III (DMYI.U) both filed to raise $250 million. Victory Park’s second SPAC L&F Acquisition (LNFA.U) and ASMA Capital’s Global SPAC Partners (GLSPU) both filed to raise $200 million. PropTech Investment II (PTICU), the second SPAC led by Hennessy Capital partners targeting real estate technology, filed to raise $175 million. Kingswood Group’s Kingswood Acquisition (KWAC.U) filed to raise $150 million, distressed business SPAC Seaport Global Acquisition (SGAMU) filed to raise $125 million, and LifeSci Capital’s second SPAC LifeSci Acquisition II (LSAQ) filed to raise $75 million.
| 10 Filings During the Week of October 12th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| dMY Technology Group III (DMYI.U) | $250M | SPAC | Goldman |
| Third blank check company formed by Niccolo de Masi and Harry You targeting an app business. | |||
| IN8bio (INAB) | $86M | Health Care | Barclays |
| Phase 1 biotech developing allogeneic T cell therapies for cancer and solid tumors. | |||
| L&F Acquisition (LNFA.U) | $200M | SPAC | Jefferies |
| Second blank check company formed by Victory Park Capital targeting governance, risk, compliance and legal tech. | |||
| LifeSci Acquisition II (LSAQ) | $75M | SPAC | LifeSci Capital |
| Second blank check company formed by LifeSci Capital targeting the healthcare industry. | |||
| PropTech Investment II (PTICU) | $175M | SPAC | Cantor Fitz. |
| Second blank check company led by partners at Hennessy Capital targeting a real estate technology business. | |||
| Global SPAC Partners (GLSPU) | $200M | SPAC | I-Bankers |
| Blank check company formed by ASMA Capital targeting businesses in MENA and South Asia. | |||
| Investindustrial Acq. (IIAC.U) | $350M | SPAC | Deutsche Bank |
| Blank check company formed by Investindustrial targeting the consumer, healthcare, industrial, and tech sectors. | |||
| Kingswood Acquisition (KWAC.U) | $150M | SPAC | Oppenheimer |
| Blank check company formed by Kingswood targeting the financial services industry. | |||
| Natural Order Acquisition (NOACU) | $250M | SPAC | Chardan |
| Blank check company focusing on technologies and products related to sustainable plant-based food and beverages. | |||
| Seaport Global Acq. (SGAMU) | $125M | SPAC | B. Riley FBR |
| Blank check company formed by Seaport Global Asset Management targeting distressed businesses. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/15/20, the Renaissance IPO Index was up 81.6% year-to-date, while the S&P 500 was up 7.8%. 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 37.8% year-to-date, while the ACWX was down 3.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
