Week Ahead: A Microcap Biotech And A SPAC

by: Renaissance Capital IPO Research

The IPO market continued at its snail's pace with only two pricing dates set and one initial filing for an up-listing this past week.

The slowdown is to be expected around this time of year as companies update their year-end financials.

Papa's special
Silver Run Acquisition (NASDAQ:SRAQU), a blank check company formed by Mark Papa and Riverstone to acquire an energy business, set a pricing date next week for its $400 million IPO. Silver Run joins KLR Energy Acquisition (NASDAQ:KLREU) as the second energy-focused SPAC looking to take advantage of depressed asset prices in the energy sector.

Financial updates
Over the past week, there have been seven companies to update their financials.

Companies Updating Financials Since February 12th
Issuer Symbol Industry Deal Size($m)
Oncobiologics ONS Biotech $115
Developing extended-release formulations of existing drugs and generics.
Spring Bank Pharmaceuticals SBPH Biotech $58
Developing a protein-modulating small molecule platform to treat viral diseases.
AnaptysBio ANAB Biotech $86
Preclinical biotech developing antibodies for severe adult asthma and peanut allergies.
Exagen EXDX Biotech $69
Sells diagnostic blood tests that detect lupus and rheumatoid arthritis.
Senseonics Holdings SENS Biotech $52
Developing a long-lasting implantable glucose monitor for diabetics.
Red Rock Resorts RRR Consumer $300
Operates 21 casino and entertainment properties in Las Vegas.
Intrepid Aviation INTR Transport. $150
Aircraft lessor with a total portfolio of 35 modern widebody aircraft.

IPO Pipeline update
Yangtze River Development
(OTCQX:YERR), an OTC traded stock with a relatively unknown underwriter, filed to raise $50 million to construct a port logistics facility along the Yangtze River. The state of Mapi Pharmaceuticals (NASDAQ:MAPI), which launched over a month ago, continues to be day-to-day.

This year has seen eight other companies update financials, which could mean that they are the most likely to go public in the near-term.

Other Companies Updating Financials in 2016
Issuer Symbol Industry Deal Size($m)
Syndax Pharmaceuticals SNDX Biotech $86
Developing a therapy that enhances checkpoint immuno-oncology drugs.
Sancilio Pharmaceuticals SPCI Biotech $86
Markets, licenses and develops products based on its lipid drug delivery technology.
Corvus Pharmaceuticals CRVS Biotech $115
Preclinical biotech developing checkpoint immunotherapies for solid tumors.
Reata Pharmaceuticals RETA Biotech $80
Developing protein-based antioxidant inflammation modulators for life-threatening diseases.
Merus MRUS Biotech $60
Developing bispecific antibody treatments for solid tumors.
Gypsum Management and Supply GMS Cap. Goods $200
Leading North American distributor of wallboard and ceiling systems.
Albertsons Companies ABS Consumer $1,600
Third-largest US grocer operating under Albertsons, Safeway and other banners.
Patheon PTHN Health Care $700
Provides outsourced contract drug manufacturing and development services.

IPO Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 14% year-to-date, compared to -6% for the S&P 500. Renaissance Capital's IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Synchrony Financial (NYSE:SYF), Alibaba (NYSE:BABA) and Citizens Financial Group (NYSE:CFG). The Renaissance International IPO Index is down 11% year-to-date, compared to -8% for ACWX. Renaissance Capital's International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF Holdings include NN Group and Recruit Holdings.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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