U.S. IPO Weekly Recap: SurveyMonkey Joins A Packed Pipeline As August Lull Ends

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Includes: ARVN, LOACU, LTHM, MDRR, NIO, STRO, SVMK, VIOT, XYF, YI
by: Renaissance Capital IPO Research

The week's eight new IPO filings support our prediction of an extremely active US IPO market in the fall. There were 31 initial filings in August, up from 13 last year (+137% YoY). In addition to several China-based companies and biotechs, the week's most well-known filing came from SurveyMonkey (NASDAQ:SVMK), an LBO'd survey service.

There have been 134 IPOs in 2018 so far, the busiest YTD period since 2014, and we expect a whopping 70-90 more in the remainder of the year. Look for a wave of Chinese deals, biotechs, and various other large and fast-growing companies. Our Fall Preview, available only for IPO Pro, will be released on Tuesday.

This past week, China-based NIO (NYSE:NIO) and 111 Inc. (NASDAQ:YI) both launched US IPOs scheduled to price on September 11. Expect the IPO calendar to fill up quickly after Labor Day.

Just one small blank check company went public this past week: Longevity Acquisition (NASDAQ:LOACU) raised $40 million as it looks for a business in China. It is led by the former head of the credit derivative market making platform at JPMorgan London.

1 IPO During the Week of August 27th, 2018

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 08/31

Longevity Acquisition

$40M

$53M

0%

+1%

+2%

Blank check company focused on acquiring a business in China.

US IPO Pipeline Update: 9 Filings Feature China, Biotechs and SurveyMonkey

9 Filings During the Week of August 27th, 2018

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Capital Bancorp (CBNK)

$35M

Financials

KBW

Community bank serving the Baltimore and Washington, DC MSAs.

LAIX (NYSE:LAIX)

$250M

Technology

Morgan Stanley

Operates Liulishuo, an AI-powered English language learning platform in China.

Arvinas (NASDAQ:ARVN)

$100M

Health Care

Goldman

Preclinical biotech developing protein degradation therapies for advanced cancers.

Medalist Diversified REIT (NASDAQ:MDRR)

$8M

Real Estate

Maxim

Virginia-based REIT managing industrial, retail and multi-family residential properties.

SurveyMonkey

$250M

Technology

JP Morgan

Operates a freemium online survey service.

Sutro Biopharma (NASDAQ:STRO)

$75M

Health Care

Cowen

Phase 1 biotech developing immunotherapies for multiple myeloma and NHL.

Viomi Technology (NASDAQ:VIOT)

$150M

Technology

Morgan Stanley

Xiaomi-backed seller of internet-connected home appliances.

X Financial (NYSE:XYF)

$250M

Technology

Deutsche Bank

Operates a peer-to-peer lending platform in China.

Livent (NYSE:LTHM)

$500M

Materials

BofA ML

Lithium compound producer being spun out of FMC.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 8.3% year-to-date, while the S&P 500 is up 8.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Athene (NYSE:ATH). The Renaissance International IPO Index is down 7% year-to-date, while the ACWX is down 4%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Delivery Hero and Siemens Healthineers.