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US IPO Weekly Recap: IPOs, SPACs, and direct listings, oh my!

A total of 29 companies entered the public market this past week, the most ever in a single week. The week’s 11 IPOs were joined by 15 SPACs and three direct listings.

Notable new IPO filings included TPG-backed antivirus provider McAfee (MCFE), Vista Equity’s IT software provider Datto (MSP), and three mortgage companies.

We also released our 3Q US Review, and updated our blog post on SPAC performance.

Data analytics unicorn Palantir (PLTR) opened 38% above its reference price, beginning trading at $10 for an implied $22.2 billion market cap. Work management SaaS Asana (ASAN) opened 29% above the reference price with its first trade at $27, implying a $5.0 billion market cap. Both deals had healthy volume on day one. While recent software IPOs have outperformed, the high-growth large-loss direct listings weren’t able to find support in the public market, and traded off from their opens. From their opening prices, Palantir finished the week down 8% and Asana finished down 4%.

The third direct listing, SMB services provider Thryv Holdings (THRY), went public with less fanfare and minimal initial volume. Formerly Dex Media, the company delisted from the Nasdaq (DXM) and declared bankruptcy in 2016; the restructured company later changed its name to Thryv Holdings in July 2019. Thryv finished up 3% from its opening price of $14.

Chinese data center operator Chindata Group Holdings (CD) priced at the high end to raise $540 million at a $4.9 billion market cap. The company has seen explosive revenue growth, and the long-term nature of its contracts provider high visibility, though revenue was highly concentrated in the 1H20. Chindata finished up 4%.

Sporting goods retailer Academy Sports and Outdoors (ASO) priced well below the range to raise $203 million at a $1.2 billion market cap. LBO’d by KKR in 2011, the company operates 259 locations concentrated in the southern US. While it targets a large and growing addressable market, the company’s revenue stream depends on consumer discretionary spending. Academy Sports finished flat.

Pulmonx (LUNG) priced above the upwardly revised range to raise $190 million at a $719 million market cap. The company’s minimally invasive alternative to lung surgery for people with emphysema was approved by the FDA in 2018, and has since been used in 20,000 patients with a high success rate. Pulmonx finished up 121%.

C4 Therapeutics (CCCC) upsized and priced above the range to raise $182 million at an $832 million market cap. The early stage biotech has four preclinical programs for its small molecule protein degraders and expects to submit an IND for its lead candidate in the 4Q20, with a trial to follow in the 1H21. C4 finished up 34%.

Dubai-based Yalla Group (YALA) priced within the range to raise $140 million at a $1.4 billion market cap. Yalla is the largest voice-centric social networking and entertainment platform in the Middle East and North Africa region. While the company has demonstrated growth and profitability, poor trading from peers and other foreign issuers weighed on performance. Yalla finished down 11%.

Mission Produce (AVO) downsized and priced well below the range to raise $96 million at an $832 million market cap. A play on growing consumer demand for avocados, Mission is a leading distributor of avocados in the US and 24 other countries. Though profitable, it faces exposure to volatile avocado prices and shelf stability, and increased industry supply negatively impacted YTD gross profit. Mission finished up 4%.

Solid tumor biotech Oncorus (ONCR) priced at the midpoint to raise $87 million at a $352 million market cap. The company’s sole clinical candidate, a tumor-inserted viral immunotherapy based on its oncolytic HSV-1 platform, is currently in a Phase 1 trial with preliminary data expected between 2H21 and 2H22. Oncorus finished up 7%.

Rare disease biotech Orphazyme (ORPH) priced below the as-converted last close of its shares on the Nasdaq Copenhagen (ORPHA) to raise $84 million at a $382 million market cap. Orphazyme is targeting neurodegenerative orphan diseases, and the FDA recently accepted its NDA for candidate arimoclomol in Niemann-Pick disease Type C, on a priority review basis. Orphazyme finished down 2%.

Pet-focused e-tailer Boqii Holding (BQ) priced at the low end to raise $70 million at a $908 million market cap. Boqii is China’s largest pet-focused e-commerce platform and online community. Following a decline in revenue in its latest fiscal year, growth turned positive in the MRQ (+26%), though gross margin declined and operating loss widened. Boqii finished down 38%.

Preclinical oncology biotech Immunome (IMNM) upsized and priced at the midpoint to raise $39 million at a $135 million market cap. The company’s lead discovery program is focused on interleukin-38, which appears to function as a novel immune checkpoint inhibitor. Very early stage, the company doesn’t expect to file an IND until the 2H21. Immunome finished up 12%.

Chinese education services provider Lixiang Education Holding (LXEH) priced within the range to raise $31 million at a $123 million market cap. Lixiang is one of the 10 largest education providers in Zhejiang, with over 4,500 students enrolled, though revenue growth decelerated in the 1H20. Lixiang finished down 40%.

The week’s 15 SPACs raised $5.7 billion, led by Apollo Global’s growth SPAC Apollo Strategic Growth Capital (APSG.U), which raised $750 million.

29 IPOs During the Week of September 28th, 2020
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 10/02
Pulmonx (LUNG) $190M $719M 27% +107% +121%
Makes minimally invasive system to treat severe emphysema.
Thryv Holdings (THRY) $272M $314M 0% +9% +41%
Restructured marketing services provider offering online tools and print yellow pages.
C4 Therapeutics (CCCC) $182M $832M 12% +34% +34%
Preclinical biotech developing small molecule protein degraders to treat cancer.
Palantir (PLTR) $1,864M $15,647M 0% +31% +27%
Data analytics platform focused on the government and financial sectors.
Asana (ASAN) $631M $3,931M 0% +37% +23%
Provides enterprise task management and collaboration software.
Altimeter Growth Corp. (AGCUU) $450M $563M 0% +22% +20%
Blank check company formed by Altimeter Capital targeting the tech sector.
Immunome (IMNM) $39M $135M 0% +12% +12%
Preclinical biotech developing antibody therapies for cancer and infectious diseases.
Oncorus (ONCR) $87M $352M 0% +7% +7%
Phase 1 biotech developing oncolytic virus therapies for solid tumors.
Mission Produce (AVO) $96M $832M -25% +15% +4%
Leading supplier of fresh avocados.
Chindata Group (CD) $540M $4,850M 8% +20% +4%
Integrated data center operator focusing on Asia-Pacific emerging markets.
Vesper Healthcare Acq. (VSPRU) $400M $500M 0% +3% +1%
Blank check company formed by the former CEO of Allergan targeting the healthcare sector.
Qell Acquisition (QELLU) $330M $405M 0% +2% +1%
Blank check company formed by PIMCO and industry veterans targeting a sustainable tech business.
CCRI I Acquisition (CLII.U) $200M $250M 0% +1% +0%
Blank check company formed by PIMCO and industry veterans targeting climate change-fighting sectors.
FG New America Acq. (FGNA.U) $225M $287M 0% +0% +0%
Blank check company led by TD Ameritrade Chairman Joseph Moglia targeting insurtech and fintech businesses.
Sports Entertainment Acq. (SEAH.U) $400M $488M 0% +0% +0%
Blank check company formed by former NFL and NHL executives targeting the sports and entertainment sectors.
Vy Global Growth (VYGG.U) $500M $625M 0% +6% +0%
Blank check company formed by Vy Capital targeting the technology sector.
ION Acquisition 1 (IACA.U) $225M $275M 0% +5% +0%
Blank check company formed by ION Asset Management to acquire an Israeli business.
Avanti Acquisition (AVAN.U) $600M $725M 0% -1% +0%
Blank check company formed by NNS Group and Sienna Capital targeting a European business.
VG Acquisition Corp. (VGAC.U) $480M $580M 0% -1% +0%
Blank check company formed by Virgin Group targeting consumer-facing businesses in the US and Western Europe.
Apollo Strategic Growth (APSG.U) $750M $938M 0% +0% +0%
Blank check company formed by Apollo targeting growth-oriented businesses.
Atlantic Avenue Acq. (ASAQ.U) $250M $313M 0% -1% +0%
Blank check company formed by MC Credit Partners targeting the business and consumer-related sectors.
Academy Sports (ASO) $203M $1,211M -19% +0% +0%
Value-oriented sports and outdoor equipment retailer in the southern US.
IG Acquisition (IGACU) $300M $375M 0% +0% +0%
Blank check company formed by the co-founders of Ivory Gaming Group targeting gaming and hospitality businesses.
AEA-Bridges Impact Corp. (IMPX.U) $400M $500M 0% +0% -1%
Blank check company formed by AEA Investors and Bridges Fund Management targeting impact and ESG businesses.
Recharge Acquisition (RCHGU) $200M $250M 0% -1% -1%
Blank check company founded by former MTC Technologies and Marathon Petroleum executives.
Orphazyme (ORPH) $84M $382M -16% -12% -2%
Danish late-stage biotech developing protein therapies for rare neurodegenerative diseases.
Yalla Group (YALA) $140M $1,377M -6% -7% -11%
Provides a voice-centric social networking and entertainment platform in MENA.
Boqii Holding (BQ) $70M $908M -9% -28% -38%
China’s largest pet-focused online retailer.
Lixiang Education Holding (LXEH) $31M $123M -8% -19% -39%
Provides private primary and secondary education services in China.

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12 IPOs and 18 SPACs submitted initial filings. Leading cybersecurity brand McAfee (MCFE) filed for an estimated $2 billion IPO. Vista-backed software maker Datto Holding (MSP) filed for an estimated $400 million IPO. Three mortgage servicing companies submitted initial filings: AmeriHome (AMHM.RC) for an estimated $300 million IPO, and Caliber Home Loans (HOMS) and Guild Holdings (GHLD) for $100 million IPOs. Peruvian healthcare provider Auna (AUNA), precious metals producer Gatos Silver (GATO), research tool provider Abcam (ABCM), preclinical oncology biotech Foghorn Therapeutics (FHTX), and multifamily REIT Aspire Real Estate Investors all filed to raise $100 million. Diagnostics provider Biodesix (BDSX) filed to raise $75 million, and healthcare technology maker G Medical Innovation Holdings (GMVD) filed to raise $30 million.

TMT industry veteran Charles Ergen’s SPAC CONX (CONXU) filed to raise $1 billion. Eldridge Industries’ second SPAC Horizon Acquisition II (HZON.U) and Moelis & Company’s SPAC Atlas Crest Investment Corp. (ACIC.RC) both filed to raise $500 million, and H.I.G. Capital’s SPAC H.I.G. Acquisition (HIGA.U) filed to raise $450 million. Cerberus’ ICT SPAC Cerberus Telecom Acquisition (CTAC.U) filed to raise $400 million, Coles and Ledecky’s consumer SPAC Northern Star Acquisition (NSU.RC) filed to raise $300 million, and TMT SPAC Spartacus Acquisition (TMTSU) and tech SPAC DPCM Capital (XPOA.U) both filed to raise $250 million. Fintech SPAC Lefteris Acquisition (LFTRU) filed to raise $225 million, and tech veteran Khurram Sheikh’s SPAC KINS Technology Group (KINZ.U), private equity firm’s SPAC SCP & CO Healthcare Acquisition (SHACU), and hospitality SPAC Tastemaker Acquisition (TMKRU) all filed to raise $200 million, and Maso Capital’s SPAC Duddell Street Acquisition (DSACU) and Sarissa Capital’s SPAC Sarissa Capital Acquisition (SRSAU) both filed to raise $175 million. IBIS Capital’s second SPAC EdtechX Holdings Acquisition II (EDTXU) filed to raise $150 million, Bain Capital’s SPAC BCLS Acquisition (BLSA) filed to raise $125 million, and Cormorant Asset Management’s SPAC Helix Acquisition (HLXA) and MPM Capital’s SPAC Turmeric Acquisition (TACU.RC) both filed to raise $100 million.

30 Filings During the Week of September 28th, 2020
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Abcam (ABCM) $100M Health Care Morgan Stanley
Provides biological reagents and tools for research, drug discovery, and diagnostics.
Aspire REIT (AREI.RC) $100M Real Estate Morgan Stanley
Multifamily REIT focused on Opportunity Zones being spun out of Avanath Capital Management.
Atlas Crest Investment (ACIC.RC) $500M SPAC Cantor Fitz.
Blank check company formed by Moelis & Company.
BCLS Acquisition (BLSA) $125M SPAC Goldman
Blank check company formed by Bain Capital targeting the healthcare industry.
Biodesix (BDSX) $75M Health Care Morgan Stanley
Provides diagnostic tests and services for lung disease and other unmet needs.
Caliber Home Loans (HOMS) $100M Financials Credit Suisse
Residential mortgage producer and servicer.
Cerberus Telecom Acq. (CTAC.U) $400M SPAC Morgan Stanley
Blank check company formed by Cerberus Capital Management targeting the ICT industry.
DPCM Capital (XPOA.U) $250M SPAC UBS
Blank check company targeting North American technology businesses.
Foghorn Therapeutics (FHTX) $100M Health Care Goldman
Preclinical biotech developing gene therapies for hematologic cancers and solid tumors.
Lefteris Acquisition (LFTRU) $225M SPAC Morgan Stanley
Blank check company formed by co-founder of Vestigo Ventures and a former E*TRADE executive targeting fintech.
Tastemaker Acquisition (TMKRU) $200M SPAC Stifel
Blank check company focusing on the restaurant, hospitality, and related tech and services sectors.
AmeriHome (AMHM.RC) $300M Financials Credit Suisse
Residential mortgage producer and servicer.
CONX (CONXU) $1,000M SPAC Deutsche Bank
Blank check company formed by Charles Ergen targeting wireless communications.
Duddell Street Acq. (DSACU) $175M SPAC BofA
Blank check company formed by Maso Capital targeting global growth companies.
G Medical Innovations (GMVD) $30M Health Care Boustead Securities
Provides mobile health and telemedicine solutions and monitoring service platforms.
Gatos Silver (GATO) $100M Materials BMO
US producer of silver and other precious metals.
Guild Holdings (GHLD) $100M Financials Wells Fargo
Provides personalized mortgage services and loan origination.
Helix Acquisition (HLXA) $100M SPAC Jefferies
Blank check company formed by Cormorant Asset Management targeting healthcare.
Auna (AUNA) $100M Health Care Morgan Stanley
Peruvian healthcare plan provider and hospital operator.
KINS Technology Group (KINZ.U) $200M SPAC UBS
Blank check company formed by tech veteran Khurram Sheikh targeting the tech industry.
Sarissa Capital Acq. (SRSAU) $175M SPAC Cantor Fitz.
Blank check company formed by Sarissa Capital targeting the healthcare and biopharma industry.
Datto (MSP) $400M Technology Morgan Stanley
Sells a hybrid IT infrastructure platform to managed service providers.
Horizon Acquisition II (HZON.U) $500M SPAC Deutsche Bank
Second blank check company formed by Todd Boehly of Eldridge Industries targeting the media and entertainment industries.
Northern Star Acquisition (NSU.RC) $300M SPAC Citi
Blank check company formed by Joanna Coles and SPAC veteran Jonathan Ledecky targeting consumer-focused businesses.
SCP & CO Healthcare Acq. (SHACU) $200M SPAC Barclays
Blank check company formed by SCP & CO targeting the healthcare industry.
EdtechX Holdings Acq. II (EDTXU) $150M SPAC Jefferies
Second blank check company formed by IBIS Capital to acquire an education technology business.
H.I.G. Acquisition (HIGA.U) $450M SPAC Credit Suisse
Blank check company formed by H.I.G. Capital.
McAfee (MCFE) $2,000M Technology Morgan Stanley
Leading provider of antivirus and endpoint security software.
Spartacus Acquisition (TMTSU) $250M SPAC B. Riley FBR
Blank check company targeting a TMT business.
Turmeric Acquisition (TACU.RC) $100M SPAC Credit Suisse
Blank check company formed by MPM Capital targeting the biotech industry.

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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/1/20, the Renaissance IPO Index was up 72.2% year-to-date, while the S&P 500 was up 4.6%. 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 32.1% year-to-date, while the ACWX was down 4.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
The article US IPO Weekly Recap: IPOs, SPACs, and direct listings, oh my! originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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