U.S. IPO Weekly Recap: IPO Market Returns From Vacation With A 128% Pop

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Includes: ALLO, BICA, EDTX, FVCB, NIO, NMCI, PRNB, PROS, QTT, YI
by: Renaissance Capital IPO Research

The IPO market is back from its annual month-long break, with the first listings since mid-August. The hot money has come with it.

Despite a broad sell-off among China stocks, three Chinese companies priced US IPOs this week. All three priced at the low end of the range. News app Qutoutiao (NASDAQ:QTT), meaning "Fun Headlines," made headlines on Friday when it popped 128% - the best of the year - helped by a small float (~3% of market cap). Just as unusual, electric vehicle startup NIO (NYSE:NIO) raised $1 billion and traded up 5% on its debut, popped 75% on its second day, and then pulled back 12% on its third. Online pharmacy 111 (NASDAQ:YI) broke issue and finished down 5%.

Targeting cancers, autoimmune diseases, inflammation, Principia Biopharma (NASDAQ:PRNB) priced an upsized offering at the high end. It popped 96%, the year's best pop for a biotech, and the 3rd-best overall. Rounding out the week, Washington, DC area bank FVCBankcorp (OTCQX:FVCB) raised $35 million in a Nasdaq IPO, and finished at its offer price.

Navios Maritime Containers LP (NASDAQ:NMCI) postponed its $100 million IPO; the containership operator formed by Navios instead plans to pursue a direct listing. In addition, two companies officially withdrew stale US IPO filings: Petroleum tanker company Product Shipping Limited (PROS) and Guatemalan bank Bicapital (NYSE:BICA).

The 2018 IPO market just hit a major milestone: this year's IPOs have raised $35.7 billion, more than the full-year 2017 ($35.5 billion). Year-to-date proceeds are 61% higher than this point last year.

In non-US news, China's Meituan Dianping (3690.HK) raised $4.2 billion in the year's fifth-largest global IPO (4/5 have been in China).

5 IPOs During the Week of September 10th, 2018

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 09/14

Qutoutiao

$84M

$2,105M

-13%

+128%

+128%

China's second largest mobile content aggregator focusing on lower tier cities.

Principia Biopharma

$106M

$418M

6%

+92%

+92%

Developing oral small molecule therapies for pemphigus, ITP and MS.

NIO

$1,002M

$6,886M

-14%

+5%

+58%

China-based producer of high-performance electric vehicles.

FVCBankcorp

$35M

$257M

0%

+0%

+0%

Community bank serving Washington, DC and Northern Virginia.

111

$99M

$1,212M

-7%

-1%

+0%

Operates an online retail drugstore and healthcare platform in China.

5 Filings During the Week of September 10th, 2018

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Allogene Therapeutics (NASDAQ:ALLO)

$100M

Health Care

Goldman

Phase 1 biotech developing off-the-shelf CAR T cell cancer therapies.

ChaSerg Tech Acquisition (CTAC.U)

$200M

SPAC

Cantor Fitz.

Blank check company formed by tech veterans to acquire a technology company.

Collier Creek (NYSE:CCH.U)

$350M

SPAC

Citi

Blank check company led by Pinnacle Foods Chairman Roger Deromedi.

ARYA Sciences Acquisition (NASDAQ:ARYAU)

$125M

SPAC

Jefferies

Blank check company formed by Perceptive Advisors to acquire a healthcare business.

EdtechX Acquisition (NASDAQ:EDTX)

$55M

SPAC

Chardan

Blank check company formed by IBIS Capital to acquire an education technology business.

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.