US IPO Weekly Recap: Biotechs flood the IPO market in a 14 IPO week

The IPO market had its busiest week yet this year with 14 IPOs raising $3.9 billion and 27 SPACs raising $9.2 billion. The IPO pipeline remained active as well, with 3 IPOs and 38 SPACs submitting initial filings.

 (TIXT) upsized and priced at the high end to raise $925 million at a $6.6 billion market cap. The company provides outsourced IT, end-to-end customer experience and digital technology solutions and services to over 600 global companies. Despite being highly profitable and fast growing, a significant portion of 2019 revenue was reliant on parent company TELUS Corp and Google. TELUS finished up 26%.

Cell therapy biotech Sana  (SANA) upsized and priced above the range to raise $588 million at a $4.9 billion market cap, making it the largest preclinical biotech IPO ever. Led by former Juno Therapeutics executives, Sana is developing cell engineering therapies for oncology, diabetes, central nervous system (CNS) disorders, cardiovascular diseases, and genetic diseases. Sana Biotech finished up 57%.

German chemicals group  (ATC) downsized and priced below the range to raise $498 million at a $3.3 billion market cap. This specialty chemical provider offers electroplating solutions for circuit boards and general metal finishing for primarily auto, smartphones, and data infrastructure. Atotech has resilient margins and strong cash flow generation, though it is leveraged post-IPO. Atotech finished up 12%.

Virtual communication platform ON24 (ONTF) priced at the high end of the range to raise $428 million at a $2.8 billion market cap. This cloud-based marketing platform offers over 1,900 B2B companies the ability to produce webinars, virtual events and multimedia content. Operating in a highly competitive market, the company saw revenue growth accelerate in the 9mo20. ON24 finished up 38%.

-based biotech  (IMCR) upsized and priced above the range to raise $258 million at a $1.1 billion market cap. Immunocore is developing targeted, off-the-shelf, bispecific T cell receptor therapies for oncology, infectious diseases, and autoimmune diseases. Interim Phase 3 analysis for its lead candidate showed overall survival benefit, and the company plans to submit a BLA in the 3Q21. Immunocore finished up 66%.

Solid tumor biotech Bolt Biotherapeutics (BOLT) further upsized and priced above the upwardly revised range to raise $230 million at a $757 million market cap. This clinical-stage biotech is developing immunotherapies that target tumor cells. Its lead candidate is currently in a Phase 1/2 trial for the treatment of patients with HER2-expressing solid tumors, and the company expects to move into Phase 2 dose expansions in 2021. Bolt finished up 61%.

The week’s best performer, cell therapy biotech Vor Biopharma (VOR) upsized and priced at the high end to raise $177 million at a $711 million market cap. This preclinical biotech is developing engineered hematopoietic stem cells (eHSC) to target cancer cells more specifically by avoiding the toxicities that limited traditional targeted therapies. Vor plans to begin first-in-human trials for its lead eHSC candidate in the 1H21. Vor finished up 108%.

Dutch rare disease biotech Pharvaris (PHVS) upsized and priced above the range to raise $165 million at a $668 million market cap. This Phase 1 biotech is developing oral small molecule therapies for rare diseases, initially angioedema and other bradykinin-mediated diseases. Pharvaris finished up 45%.

COVID-19 test kit developer Lucira Health (LHDX) upsized and priced at the high end to raise $153 million at a $705 million market cap. The company develops at home molecular COVID-19 nasal swab tests. It received an EUA from the FDA in November 2020, and it expects to launch sales imminently. The company is also developing testing kits for the flu and other infectious diseases. Lucira finished up 47%.

Sensei Biotherapeutics (SNSE) upsized and priced above the range to raise $133 million at a $591 million market cap. This biotech is using its ImmunoPhage platform to identify and use bacteriophages as immunotherapies for the treatment of cancer. Its lead candidate is in a Phase 1/2 trial for the treatment of squamous cell carcinoma. Sensei Biotherapeutics finished up 18%.

NASH biotech Terns Pharmaceuticals (TERN) upsized and priced at the high end to raise $128 million at a $430 million market cap. This Phase 2 biotech is developing small molecule therapies for NASH and other chronic liver diseases. Its lead candidate has demonstrated sustained liver FXR activation and was tolerated favorably in Phase 1 clinical trials. Terns finished up 8%.

Autoimmune biotech Landos Biopharma (LABP) priced at the midpoint to raise $100 million at a $650 million market cap. Landos is developing oral small molecule therapies for autoimmune diseases, starting with ulcerative colitis and Crohn’s disease. Its lead candidate is expected to enter a Phase 3 trial for UC and a Phase 2 trial for CD in the 1H21. Landos finished down 31%.

Angion Biomedica (ANGN) priced at the high end to raise $80 million at a $512 million market cap. This biotech is developing small molecule therapies for acute organ injuries and fibrotic diseases. Its lead candidate is a hepatocyte growth factor and is currently in a Phase 3 registrational for kidney-related illnesses. Angion Biomedica finished up 6%.

Danish biotech Evaxion Biotech (EVAX) upsized and priced at the low end to raise $30 million at a $214 million market cap. This clinical-stage biotech uses its AI-driven platforms to identify and develop immunotherapies for cancers, bacterial diseases and viral infections. Evaxion’s two lead candidates are in Phase 1/2a trials. Evaxion Biotech finished down 1%.

27 blank check companies raised $9.2 billion this past week. The group was led by Starwood Capital founder Barry Sternlicht’s third SPAC Jaws Mustang Acquisition (JWSM.U), which raised $900 million to acquire a business in North America and/or Europe.

41 IPOS DURING THE WEEK OF FEBRUARY 1ST, 2021
ISSUER
BUSINESS
DEAL
SIZE
MARKET CAP
AT IPO
PRICE VS.
MIDPOINT
FIRST DAY
RETURN
RETURN
AT 02/05
Vor Biopharma (VOR) $177M $711M 6% +108% +108%
Preclinical biotech developing cell therapies for hematological diseases.
Immunocore (IMCR) $258M $1,121M 8% +66% +66%
Phase 3 biotech developing T cell therapies for cancer and other diseases.
Bolt Biotherapeutics (BOLT) $230M $757M 18% +61% +61%
Phase 1/2 biotech developing targeted therapies for solid tumors.
Sana Biotechnology (SANA) $588M $4,928M 16% +40% +56%
Preclinical biotech developing engineered cell therapies for multiple indications.
Lucira Health (LHDX) $153M $705M 6% +47% +47%
Developing single-use test kits for COVID-19 and other infectious diseases.
Pharvaris (PHVS) $165M $668M 11% +45% +45%
Dutch Phase 1 biotech developing oral small molecule therapies for rare diseases.
ON24 (ONTF) $428M $2,770M 5% +42% +38%
Provides a B2B customer engagement platform supporting webinars and analytics.
TELUS International (TIXT) $925M $6,638M 4% +22% +26%
Provides customer service outsourcing and digital IT services.
Sensei Biotherapeutics (SNSE) $133M $591M 12% -1% +18%
Phase 2 biotech developing bacteriophage-based therapies for cancer.
Decarb. Plus Acq. II (DCRNU) $350M $428M 0% +13% +15%
Fourth blank check company formed by Riverstone targeting businesses advancing global decarbonization.
Sustainable Dev. Acq. I (SDACU) $275M $344M 0% +12% +12%
Blank check public benefit corporation formed by RRG and Capricorn Investment Group.
Atotech (ATC) $498M $3,345M -17% +13% +12%
Carlyle-backed specialty chemicals company carved out of Total.
Fifth Wall Acquisition I (FWAA) $300M $375M 0% +11% +11%
Blank check company targeting a real estate technology business.
Novus Capital Corp II (NXU.U) $250M $313M 0% +10% +10%
Blank check company targeting businesses enabling smart technology evolution.
RMG Acquisition III (RMGCU) $420M $525M 0% +9% +9%
Third blank check company formed by Riverside’s James Carpenter and former Carlyle executive Robert Mancini.
G Squared Ascend I (GSQD.U) $300M $375M 0% +9% +9%
Blank check company formed by G Squared targeting the tech sector.
Terns Pharmaceuticals (TERN) $128M $430M 6% +8% +8%
Phase 2 biotech developing small molecule therapies for NASH.
Ark Global Acquisition (ARKIU) $300M $375M 0% +7% +7%
Blank check company led by a former Groupon CEO and QIA fund manager targeting disruptive technology.
Atlas Crest Investment II (ACII.U) $300M $375M 0% +7% +7%
Second blank check company formed by Moelis and Company.
CC Neuberger Holdings III (PRPC.U) $350M $488M 0% +7% +7%
Third blank check company formed by CC Capital and Neuberger Berman.
Thunder Bridge III (TBCPU) $360M $459M 0% +6% +6%
Third blank check company led by Gary Simanson targeting the fintech industry.
Angion Biomedica (ANGN) $80M $512M 7% +6% +6%
Phase 3 biotech developing small molecule therapies for acute organ injuries.
Jaws Mustang Acquisition (JWSM.U) $900M $1,125M 0% +6% +6%
Third blank check company led by Starwood Capital founder Barry Sternlicht.
Compute Health Acq. (CPUH.U) $750M $938M 0% +5% +5%
Blank check company targeting the intersection of computation and healthcare.
Music Acquisition (TMAC.U) $200M $250M 0% +5% +5%
Blank check company targeting the music sector.
Noble Rock Acquisition (NRACU) $210M $263M 0% +3% +5%
Blank check company formed by Noble Rock Advisors targeting the software and tech-enabled services sectors.
HH&L Acquisition (HHLA.U) $360M $450M 0% +5% +5%
Blank check company targeting the healthcare sector in .
JOFF Fintech Acq. (JOFFU) $360M $450M 0% +4% +4%
Blank check company targeting the financial services industry and FinTech.
COVA Acquisition (COVAU) $261M $326M 0% +4% +4%
Blank check company formed by Crescent Cove Advisors targeting tech businesses in Southeast Asia.
Gaming & Hospitality Acq. (GHACU) $175M $227M 0% +4% +4%
Blank check company formed by Affinity Gaming targeting the gaming and hospitality sectors.
Ares Acquisition (AAC.U) $870M $1,088M 0% +4% +4%
Blank check company formed by Ares Management targeting a sustainable business.
Centricus Acquisition (CENHU) $300M $375M 0% +4% +4%
UK-based blank check company led by former executives at Silversea Cruises and Deutsche Bank.
Itiquira Acquisition (ITQRU) $200M $250M 0% +3% +4%
Blank check company targeting growth sectors in Brazil.
Thimble Point Acquisition (THMAU) $240M $300M 0% +4% +4%
Blank check company targeting high-growth software and technology.
Kernel Group (KRNLU) $265M $331M 0% +4% +3%
Blank check company targeting technology infrastructure sectors.
Quantum FinTech Acq. (QFTA.U) $175M $219M 0% +2% +2%
Blank check company targeting businesses providing tech services to the financial sector.
Astrea Acquisition (ASAXU) $150M $192M 0% +2% +2%
Blank check company targeting the hospitality and financial services sectors.
MDH Acquisition (MDH.U) $240M $300M 0% +2% +2%
Blank check company formed by McLarty Diversified Holdings targeting businesses in the Heartland.
Altimar Acquisition II (ATMRU) $300M $375M 0% n/a +0%
Second blank check company formed by HPS Investment Partners.
Evaxion Biotech (EVAX) $30M $214M -9% -1% -1%
Danish Phase 1/2 biotech using AI to develop immuno-oncology therapies.
Landos Biopharma (LABP) $100M $650M 0% -25% -31%
Phase 2 biotech developing oral small molecule therapies for autoimmune diseases.

3 IPOs and 38 SPACs submitted initial filings this past week. Health insurer Oscar Health (OSCR) filed to raise $100 million. Glucose monitoring device developer Movano (MOVE) filed to raise $41 million, and hydroponic equipment supplier iPower (IPW) filed to raise $20 million.

38 SPACs submitted initial filings led by KKR and former Gap CEO Glenn Murphy’s KKR Acquisition I (KAHC.U), which filed to raise $1 billion, and Bancorp-led FTAC Hera Acquisition (HERAU), which filed to raise $750 million.

41 FILINGS DURING THE WEEK OF FEBRUARY 1ST, 2021
ISSUER
BUSINESS
DEAL
SIZE
SECTOR LEAD
UNDERWRITER
American Acquisition Opp. (AACO.RC) $100M SPAC Kingswood Cap. Mkts.
Blank check company formed by the founders of Land Betterment Corp targeting land and resource holding companies.
Arctos NorthStar Acq. (ANAC.U) $275M SPAC Citi
Blank check company formed by Arctos Sports Partners targeting the sports, media, and entertainment sectors.
Athena Technology Acq. (ATHN.U) $250M SPAC Citi
Blank check company targeting technology, direct to consumer, and fintech.
Cartesian Growth Corp (GLBLU) $250M SPAC Cantor Fitz.
Blank check company formed by Cartesian Capital Group targeting high-growth businesses.
Colicity (COLIU) $275M SPAC Goldman
Blank check company formed by Pendrell targeting TMT.
Flame Acquisition (FLME.U) $250M SPAC Cowen
Blank check company led by industry veterans targeting the energy sector.
Oscar Health (OSCR) $600M Financials Goldman
Provides health insurance products and services.
Property Solutions II (PSAGU) $250M SPAC EarlyBird
Second blank check company formed by Benchmark Real Estate Group targeting the real estate industry.
Silver Spike Acq. II (SPKBU) $250M SPAC Credit Suisse
Second blank check company formed by Silver Spike Capital targeting the cannabis industry.
SVF Investment 2 (SVFBU) $200M SPAC Citi
Third blank check company formed by SoftBank targeting technology-enabled sectors.
SVF Investment 3 (SVFCU) $350M SPAC Citi
Fourth blank check company formed by SoftBank targeting technology-enabled sectors.
TCW Special Purpose Acq. (NAPA.U) $400M SPAC Citi
Blank check company formed by TCW Group targeting the tech, healthcare, industrial, or consumer sectors.
USHG Acquisition (HUGSU) $250M SPAC Goldman
Blank check company formed by Union Square Hospitality Group.
Velocity Acquisition (VELOU) $200M SPAC Citi
Second blank check company formed by &vest targeting digital transformation.
Warrior Technologies Acq. (WARR.U) $200M SPAC Raymond James
Blank check company targeting a business in the environmental services sector with strong ESG practices.
ArcLight Clean II (ACTDU) $250M SPAC Citi
Second blank check company formed by ArcLight Capital Partners targeting renewables.
BOA Acquisition (BOASU) $175M SPAC BTIG
Blank check company targeting real estate technology.
First Reserve Sustainable (FRSGU) $200M SPAC Barclays
Blank check company formed by First Reserve targeting sustainability.
Hudson Executive Inv. III (HIIIU) $500M SPAC Citi
Third blank company formed by Hudson Executive Capital targeting high-growth industries.
KKR Acquisition I (KAHC.U) $1,000M SPAC Citi
Blank check company formed by KKR and former Gap CEO Glenn Murphy targeting the consumer sector.
Northern Star Inv. III (NSTC.U) $300M SPAC Citi
Third blank check company formed by and SPAC veteran Jonathan Ledecky.
Northern Star Inv. IV (NSTD.U) $300M SPAC Citi
Fourth blank check company formed by Joanna Coles and SPAC veteran Jonathan Ledecky.
Slam Corp. (SLAMU) $500M SPAC Goldman
Blank check company led by former professional baseball player Alex Rodriguez.
Figure Acquisition I (FACA.U) $250M SPAC Citi
Blank check company formed by Figure Technologies targeting financials.
Agile Growth (AGRU.RC) $300M SPAC Citi
Blank check company targeting technology.
Finserv Acquisition II (FSRXU) $250M SPAC Citi
Second blank check company led by finance veterans targeting the fintech industry.
Gores Tech Partners II (GTPBU) $400M SPAC Deutsche Bank
Tenth blank check company formed by targeting a tech business.
Gores Technology Partners (GTPAU) $240M SPAC Deutsche Bank
Ninth blank check company formed by The Gores Group targeting a tech business.
Movano (MOVE) $41M Health Care National Sec.
Developing a wearable device that measures glucose, blood pressure, and heart rate.
Ross Acquisition II (ROSS.U) $300M SPAC BofA
Blank check company formed by Wilbur Ross and the co-founders of BroadPeak Global.
ABG Acquisition I (ABGI) $120M SPAC Jefferies
Blank check company formed by Ally Bridge Group targeting the healthcare sector.
Advanced Merger Partners (AMPI.U) $250M SPAC Goldman
Blank check company formed by Houlihan Lokey and Saddle Point Management.
CM Life Sciences II (CMII.RC) $200M SPAC Jefferies
Second blank check company formed by and Corvex Management targeting a life science business.
FTAC Hera Acquisition (HERAU) $750M SPAC Citi
Eighth blank check company formed by management of The Bancorp to acquire a fintech business.
iPower (IPW) $20M Industrials Boustead
Online hydroponic equipment supplier.
MCAP Acquisition (MACQU) $250M SPAC Cowen
Blank check company formed by Monroe Capital targeting technology.
Moringa Acquisition (MACAU) $100M SPAC EarlyBird
Blank check company targeting an Israel-related technology business.
New Vista Acquisition (NVSAU) $200M SPAC Citi
Blank check company led by ex-Boeing CEO Dennis Muilenburg targeting emerging tech and aerospace and defense.
Newbury Street Acq. (NBSTU) $150M SPAC EarlyBird
Blank check company targeting a tech business in the consumer internet or media space.
SportsTek Acquisition (SPTKU) $125M SPAC Stifel
Blank check company targeting the sports and related sectors.
Twelve Seas Investment II (TWLVU) $250M SPAC Mizuho
Blank check company targeting global companies located outside the US.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/4/2021, the Renaissance IPO Index was up 12.5% year-to-date, while the S&P 500 was up 3.1%. Renaissance Capital’s IPO ETF (: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Peloton Interactive (PTON). The Renaissance International IPO Index was up 6.6% year-to-date, while the ACWX was up 3.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Smoore International.

Relevant Profiles: TIXTSANAATCONTFIMCRBOLTVORPHVSLHDXSNSETERNLABPANGNEVAXJWSM.UOSCRMOVEIPWKAHC.UHERAU

Source: Renaissance Capital – US IPO Weekly Recap: Biotechs flood the IPO market in a 14 IPO week