US IPO Weekly Recap: Breast cancer biotech pops 158% in a 6 IPO week

In a scramble to go public ahead of the holiday, six IPOs and 15 SPACs went public this past week led by breast cancer biotech Olema Pharmaceuticals (OLMA), which soared 158% on its first day. New filings continued to pour in, priming the IPO pipeline for an active end to 2020.

The week’s top performer, Phase 1 biotech Olema Pharmaceuticals (OLMA) upsized and priced above the range to raise $209 million at a $769 million market cap. This biotech is developing a targeted endocrine therapy for metastatic breast cancer that can be taken orally instead of injected intramuscularly. Its lead candidate is currently in an ongoing Phase 1/2 trial, with initial data expected in the 2H21. Olema finished the week up 157%.

Research testing service provider Maravai LifeSciences (MRVI) upsized and priced at the high end to raise $1.6 billion at a $7.2 billion market cap. The highly-profitable company has seen accelerated growth in 2020, thanks to the use of its mRNA products in COVID-19 vaccine development, but it is highly leveraged post-IPO at 3.1x net debt/adj. EBITDA. Maravai finished up 11%.

Sterilization service provider Sotera Health (SHC) priced at the top of the range to raise $1.1 billion at a $6.4 billion market cap. Sotera Health provides sterilization services, Co-60 products used in the gamma-radiation sterilization process, and lab testing and advisory services. Despite downturns due to COVID-19, the company is profitable with expanding margins and strong free cash flow. Sotera finished up 9%.

Chinese cosmetics producer Yatsen (YSG) priced at the high end to raise $617 million at a $7.0 billion market cap. Yatsen produces and sells cosmetics under the brands including Perfect Diary. While its operating margins took a hit in the YTD period due in part to COVID-19, the company saw explosive growth in 2019. Yatsen finished up 91%.

Cybersecurity product provider Telos (TLS) upsized and priced at the midpoint to raise $254 million at a $1.1 billion market cap. Telos provides highly customizable software-based security solutions, primarily to the US government, which accounted for more than 90% of 2019 revenue. The company is targeting a large market opportunity, though gross margins are relatively low and fluctuate based on mix. Telos finished up 12%. 

Israeli lottery technology provider NeoGames (NGMS) priced above the range to raise $82 million at a $444 million market cap. The company provides technology, gaming, and operational services to lottery operators in North America and Europe. NeoGames is the leader in the US and benefits from long and sticky contracts, though revenue from its contracts is highly concentrated. NeoGames finished up 22%.

15 SPACs raised $2.5 billion this past week led by European investment group Investindustrial’s SPAC Investindustrial Acquisition (IIAC.U), which raised $350 million to target the consumer, healthcare, industrial, and tech sectors.

Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.

10 IPOs and 13 SPACs submitted initial filings this past week. Booking platform for short-term stays Airbnb (ABNB) filed to raise $3 billion. Ultra-bargain e-commerce platform Wish (WISH), video game development and interactive platform Roblox (RBLX), and closed-end installment loan provider Affirm (AFRM) all filed to raise $1 billion. Biosimulation software and services provider Certara (CERT) filed to raise $500 million. Drug discovery platform provider AbCellera (ABCL) filed to raise $200 million. Gene therapy developer 4D Molecular Therapeutics (FDMT) filed to raise $75 million. French nanoparticle therapy developer Nanobiotix (NBTX) filed to raise $60 million. Biospecimen online marketplace platform iSpecimen (ISPN.RC) filed to raise $21 million. Japanese health salon chain Medirom Healthcare Technology (MRM) filed to raise $20 million.

Tom Farley’s second SPAC Far Peak Acquisition (FPAC.U) filed to raise $550 million. TMT-focused SPAC Liberty Media Acquisition (LMACU) filed to raise $500 million. Highland Capital Partners’ SPAC Highland Transcend I (HTPIU.RC), True Wind Capital’s third SPAC Nebula Caravel Acquisition (NEBCU), Starwood Capital’s founder Barry Sternlicht’s SPAC Jaws Spitfire Acquisition (SPFR.U), and venture firm’s Revolution Acceleration Acquisition (RAACU) all filed to raise $250 million. US health and wellness SPAC HumanCo Acquisition (HMCOU) filed to raise $225 million. Technology-focused SPAC Trepont Acquisition I (TACA.U), and Fortress Investment Group’s third SPAC Fortress Value Acquisition III (FVT.U) both filed to raise $200 million. DD3 Capital Partners’ SPAC DD3 Acquisition II (DDMXU), media and telecom-focused SPAC American Technology Acquisition (ATA.U), consumer products-focused SPAC Adara Acquisition (ADRA.U), and biotech SPAC Frazier Lifesciences Acquisition (FLACU) all filed to raise $100 million.


Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/19/20, the Renaissance IPO Index was up 85.4% year-to-date, while the S&P 500 was up 10.9%. 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 39.2% year-to-date, while the ACWX was up 4.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.