U.S. IPO Week Ahead: Just 2 Small IPOs During Election Week

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Includes: ALZH, CLBR, CNF, CNTX, VAPO, XM
by: Renaissance Capital IPO Research

The IPO market will see just two small deals raise less than $100 million during the week of US midterm elections. However, the lack of activity is more attributable to market volatility than the elections - 8 IPOs raised $1.7 billion in the first week of November 2014. In addition, new filings have slowed down.

Four IPOs become eligible to launch their offerings on Monday: software unicorn Qualtrics (XM), pain biotech Centrexion (NASDAQ:CNTX), government service contractor Caliburn International (CLBR), and small medical device maker Vapotherm (NYSE:VAPO).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

CNFinance Holdings (NYSE:CNF)
Guangzhou, China

$52M
$604M

$7.50 - $8.50
6,500,000

Roth Cap.
Shenwan Hongyuan

Leading provider of home equity loans in China.

Alzheon (NASDAQ:ALZH)
Framingham, MA

$30M
$82M

$4 - $6
6,000,000

ThinkEquity
HC Wainwright

Phase 3 biotech developing small molecule therapies for Alzheimer's disease.

CNFinance Holdings, a leading provider of home equity loans in China, plans to raise $52 million by offering 6.5 million ADSs at a price range of $7.50 to $8.50. Outside investors have covered the entire deal, including the green shoe. At the midpoint of the proposed range, CNFinance would command a fully diluted market value of $604 million. The founder-led company was formed in 1999 and booked $335 million in sales for the 12 months ended June 30, 2018. It plans to list on the NYSE under the symbol CNF. Roth Capital and Shenwan Hongyuan Securities are the joint bookrunners on the deal. It originally filed in June with a proposed deal size of $200 million and J.P. Morgan as the lead manager.

Alzheon, a Phase 3 biotech developing small molecule therapies for Alzheimer's disease, plans to raise $30 million by offering 6.0 million shares at a price range of $4.00 to $6.00. In the previous week, Alzheon attempted to offer 2.5 million shares at a range of $13.00 to $15.00. At the $5.00 midpoint, Alzheon would command a market value of $82 million, less than half the size of the previous attempt. The Framingham, MA-based company was founded in 2013 and plans to list on the Nasdaq under the symbol ALZH. ThinkEquity and H.C. Wainwright are the joint bookrunners on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/1/18, the Renaissance IPO Index was down 4.0% year-to-date, while the S&P 500 had a gain of 4.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (OTC:VICI) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was down 16.8% year-to-date, while the ACWX was down 9.8%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Siemens Healthineers and Innogy.