Updated Monday, 11/16.
US IPO market activity is picking back up ahead of the Thanksgiving holiday, with seven IPOs scheduled to raise $3.6 billion in the week ahead.
Biotech research product provider Maravai LifeSciences (MRVI) plans to raise $1.3 billion at a $6.6 billion market cap. Maravai provides critical products to enable development of drugs, diagnostics, novel vaccines, and support research on human diseases. The company’s more than 5,000 customers include the top 20 global biopharmas by R&D spend. Maravai has seen increased demand in recent months due to COVID-19.
Lab service provider Sotera Health (SHC) plans to raise $1.0 billion at a $6.0 billion market cap. Sotera Health provides sterilization, testing, and advisory services to research labs in the medical device and pharmaceutical industries. Slow growing and profitable, the company serves more than 40 of the top 50 medical device companies and 8 of the top 10 global pharmaceuticals by revenue.
Chinese cosmetics producer Yatsen (YSG) plans to raise $558 million at a $6.4 billion market cap. Yatsen makes cosmetics and skincare products under the brands, the Perfect Diary, Little Ondine and Abby’s Choice in China. The company is fast growing, though it was unprofitable in the 9mo20, and gross margin contracted due to COVID-19.
Multifamily REIT Aspire Real Estate Investors (ASPI) plans to raise $300 million at a $327 million market cap. Formed from predecessors Avanath Affordable Housing I and II, this REIT is focused on acquiring existing income producing affordable and workforce multifamily properties. Its initial portfolio will be comprised of nine multifamily projects, six of which are located in Opportunity Zones.
Cybersecurity solutions provider Telos (TLS) plans to raise $210 million at a $1.0 billion market cap. Telos provides a portfolio of security products and services. Profitable on an EBITDA basis, the company’s customers include the US federal government, large commercial businesses like Amazon and Citi, and international clients.
Clinical stage biotech Olema Pharmaceuticals (OLMA) plans to raise $170 million at a $670 million market cap. Olema is focused on the discovery, development and commercialization of next generation targeted therapies for women’s cancers. Its lead candidate, OP-1250, is currently in an ongoing Phase 1/2 trial in a subset of ER+/HER2- breast cancer patients, with initial data expected in the 2H21.
Online lottery and gaming provider NeoGames (NGMS) plans to raise $72 million at a $392 million market cap. The company provides B2G and B2B technology and services to state lotteries and other lottery operators in Europe and North America. NeoGames is fast growing, and its consumer base is expanding rapidly, with monthly active players up 70% y/y in 9mo20.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Aspire REIT (ASPI) Irvine, CA |
$300M $327M |
$20 15,000,000 |
Morgan Stanley B. Riley FBR |
| Affordable housing REIT targeting Opportunity Zones formed by Avanath Capital. | |||
| NeoGames (NGMS) Tel Aviv, Israel |
$72M $392M |
$14 - $16 4,807,522 |
Stifel Macquarie |
| Provides online gaming technology and services to lottery operators. | |||
| Olema Pharmaceuticals (OLMA) San Francisco, CA |
$170M $670M |
$16 - $18 10,000,000 |
JP Morgan Jefferies |
| Clinical-stage biotech developing therapies for women's cancers. | |||
| Maravai LifeSciences (MRVI) San Diego, CA |
$1,275M $6,575M |
$24 - $27 50,000,000 |
Morgan Stanley Jefferies |
| Provides genetic products and testing services for drug development and research. | |||
| Sotera Health (SHC) Broadview Heights, OH |
$1,002M $5,963M |
$20 - $23 46,600,000 |
JP Morgan Credit Suisse |
| Provides lab services to the medical device and pharma industries. | |||
| Telos (TLS) Ashburn, VA |
$210M $1,031M |
$16 - $18 12,352,942 |
B. Riley FBR BMO |
| Provides cybersecurity products and services. | |||
| Yatsen (YSG) Guangzhou, China |
$558M $6,352M |
$8.50 - $10.50 58,750,000 |
Goldman Morgan Stanley |
| Makes cosmetics under the Perfect Diary, Little Ondine, and Abby's Choice brands in China. | |||
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Street research is expected for five companies. On Sunday, 11/15: Datto Holding (MSP). On Monday, 11/16: Abcam (ABCM), Guild Holdings (GHLD), and McAfee (MCFE). On Tuesday, 11/17: Foghorn Therapeutics (FHTX).
The lock-up period will be expiring for SelectQuote (SLQT) on Tuesday, 11/17, and Inari Medical (NARI) on Wednesday, 11/18.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/12/20, the Renaissance IPO Index was up 80.0% year-to-date, while the S&P 500 was up 9.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video (ZM). The Renaissance International IPO Index was up 36.1% year-to-date, while the ACWX was up 1.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
