Revolution Medicines leads an IPO Calendar with six names on it during Valentine’s week – hot on the heels of February’s IPO market getting off to a great start. (We’ll have more on this week’s deals in a minute.)
Bankers priced eight deals last week, raising $2.52 billion. On a 52-week basis, that would amount to 416 IPOs raising $131.04 billion.
As a group, last week’s eight deals did well. As of the close on Friday, Feb. 7, six IPOs were winners. The average gain for all eight deals was 19.8 percent. For the complete results of the weekly IPO traffic, please to to the home page of IPOScoop.com. At the bottom of the page, click on “Archive,” then click on IPO Traffic: Week Ending Feb. 7, 2020, and “Read More.” You’ll see the big winner was Schrodinger (SDGR). It priced its IPO of 11.9 million shares at $17 each, above its S-1/A filing terms of 10 million shares at $14 to $16 each. Schrodinger’s stock closed Friday at $31.92, up 87.8 percent from its IPO price.
Inside The IPO Calendar
This week’s lineup includes two new IPOs, two “blank check” companies and two carryovers. Bankers expect to raise $510 million. Let’s take a look at these deals.
Revolution Medicines (RVMD proposed), based in Redwood City, California, is a clinical-stage precision oncology company focused on developing novel targeted therapies to inhibit elusive high-value frontier targets within notorious growth and survival pathways, with particular emphasis on the RAS and mTOR signaling pathways.
The story: The word around Wall Street is that Revolution Medicines could be “the deal of the week.” The company has a collaboration agreement with Sanofi and an agreement with Amgen. It reported revenue of $48.3 million for the 12 months ended Sept. 30, 2019.
The company plans to offer 10 million shares at $14 to $16 each on Wednesday evening, Feb. 12, to trade Thursday morning, Feb. 13, which incidentally is the day before Valentine’s Day.
Huize Holding (HUIZ proposed), based in Shenzhen, China, runs an online insurance product and service platform in China. The company’s platform distributes insurance products underwritten by its insurer partners. Huize generates revenues from the insurance brokerage fees paid by its insurer partners.
The story: Huize was formed in 2015. It had an accumulated deficit of $51.3 million as of Sept. 30, 2019. On Sept. 4, 2019, the company filed for an IPO to offer $150 million of stock with Morgan Stanley as the joint-lead manager. On Feb. 6, Huize refiled to offer $48.4 million of stock without Morgan Stanley, according to its prospectus. Note: Its prospectus states there are fewer than 10 corporate investors indicating for up to $50 million on an IPO of $48.4 million.
The company plans to offer 4.65 million American Depositary Shares at $9.40 to $11.40 on Tuesday evening, Feb. 11, to trade on Wednesday morning, Feb. 12.
Two Blank Checks
Greenrose Acquisition (GRACU proposed), based in Woodbury, New York, is a blank check company formed recently to identify, acquire and, after its initial business combination, assist in the growth of a business in the cannabis industry.
The company plans to offer 15 million units at $10 each on Monday evening, Feb. 10, to trade Tuesday morning, Feb. 11.
Newborn Acquisition (NBACU proposed), based in Shanghai, is a blank check company, or special-purpose acquisition company (a SPAC) that was formed recently to focus on operating businesses in Asia (excluding China) and the United States.
The company plans to offer 5 million units at $10 each on Tuesday evening, Feb. 11, to trade Wednesday morning, Feb. 12.
Avadim Health (AHI – proposed), based in Asheville, North Carolina, is a high-growth healthcare and wellness company that sells topical products to improve immune health, neuromuscular health and skin barrier health.
The company plans to offer 5 million shares at $14 to $16 each – with the timing of the IPO described as “day to day.”
This IPO is a carryover from last week.
Week of Feb. 10
F5 Finishes (FLRZ proposed), based in Livermore, California, provides commercial flooring solutions, including sales, installation and maintenance services for existing and new commercial buildings.
The company recently cut the deal’s size to 4 million shares at $5 each, down from 5 million shares at $7 to $8 each, with the timing described only as sometime during the week of Feb. 10.
This IPO is a carryover from last week.
(For more information, please check their profiles on IPOScoop.com’s website.)
This brings us to the week of Feb. 17, when the U.S. stock market will be closed on Monday, the 17th, for Presidents Day. The IPO Calendar is blank for this four-day work week. But that could change when the U.S. Securities and Exchange Commission’s filing window opens for business again on Monday, Feb. 10.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinion.