U.S. IPO Week Ahead: Largest-Ever Biotech IPO Moderna Leads 4-Deal Week

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Includes: BYND, CBUS, CLBR, DMAC, GTWY, MOGU, MRNA, RVLV, SI, THOR, TME, VTUS
by: Renaissance Capital IPO Research

Four companies plan to raise $689 million during the week ahead. Biotech giant Moderna (NASDAQ:MRNA) continues this year's boom of large biotech IPOs. Developing a platform of messenger RNA, Moderna is raising $500 million at an $8.0 billion valuation. That would make it the largest biotech ever to go public, and the third most highly-valued VC exit in the 2018 IPO market, behind Spotify (NYSE:SPOT) ($25 billion) and Dropbox (NASDAQ:DBX) ($9 billion).

The week's other deals include two small biotechs: immunotherapy developer Synthorx (NASDAQ:THOR) is raising $100 million, mostly from insiders, and micro-cap vascular biotech DiaMedica (DMAC) is completing an $18 million IPO uplisting.

Chinese e-commerce play MOGU (MOGU) plans to raise $71 million at a $1.7 billion valuation. As much as 42% of the deal could be bought by JD.com (NASDAQ:JD). Coming off a year of negative growth, MOGU is being pitched at a range of $14-$16; MOGU last raised capital in 2016 at about $25 per share, as converted.

Five recent filers become eligible to launch IPOs in the week ahead: Beyond Meat (BYND), Virgin Trains USA (VTUS), Cibus (CBUS), Silvergate Capital (SI) and Gateway Casinos & Entertainment (GTWY). Other IPOs in the pipeline may also take advantage of the market's modest recovery this past week and launch, like Caliburn International (CLBR) and Revolve Group (RVLV). Some news sites have predicted that Tencent Music (NYSE:TME) plans to launch its $1+ billion IPO as well.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

MOGU
Hangzhou, China

$71M
$1,693M

$14 - $16
4,750,000

Morgan Stanley
Credit Suisse

Tencent-backed online fashion marketplace in China.

DiaMedica Therapeutics
Minneapolis, MN

$18M
$53M

$4 - $5
4,000,000

Craig-Hallum

Phase 2 biotech targeting acute ischemic stroke and chronic kidney disease.

Moderna
Cambridge, MA

$500M
$8,016M

$22 - $24
21,739,131

Morgan Stanley
Goldman

Biotech developing therapies based on its modified mRNA platform.

Synthorx
La Jolla, CA

$100M
$324M

$10 - $12
9,100,000

Jefferies
Leerink Partners

Preclinical biotech developing immunotherapies for solid tumors and autoimmune disorders.

Moderna, a biotech developing therapies based on its modified mRNA platform, plans to raise $500 million by offering 21.7 million shares at a price range of $22.00 to $24.00. At the midpoint of the proposed range, it would command a market value of $8.0 billion. Moderna, which was founded in 2010, booked $192 million in collaboration and grant revenue over the last 12 months. The Cambridge, MA-based company plans to list on the Nasdaq under the symbol MRNA. Morgan Stanley, Goldman Sachs, J.P. Morgan and BofA Merrill Lynch are the joint bookrunners on the deal.

MOGU, a Tencent (OTCPK:TCEHY)-backed online fashion marketplace in China, plans to raise $71 million by offering 4.8 million ADSs at a price range of $14.00 to $16.00. At the midpoint of the proposed range, it would command a market value of $1.7 billion. JD.com has agreed to purchase $30 million on the IPO or in a concurrent private placement. MOGU, which was founded in 2009, booked $141 million in sales over the last 12 months. The Hangzhou, China-based company plans to list on the NYSE under the symbol MOGU. Morgan Stanley, Credit Suisse and China Renaissance are the joint bookrunners on the deal.

Synthorx, a preclinical biotech developing immunotherapies for solid tumors and autoimmune disorders, plans to raise $100 million by offering 9.1 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, it would command a market value of $324 million. Insiders intend to purchase up to $75 million of the IPO (75% of the deal). The La Jolla, CA-based company, which was founded in 2014, plans to list on the Nasdaq under the symbol THOR. Jefferies, Leerink Partners and Evercore ISI are the joint bookrunners on the deal.

DiaMedica Therapeutics, a Phase 2 biotech targeting acute ischemic stroke and chronic kidney disease, plans to raise $18 million by offering 4.0 million shares at a price range of $4.00 to $5.00. At the midpoint of the proposed range, DiaMedica Therapeutics would command a market value of $53 million. The company is currently listed on the OTCQB and the Toronto Venture Exchange. The Minneapolis, MN-based company, which was founded in 2000, plans to list on the Nasdaq under the symbol DMAC. Craig-Hallum is the sole bookrunner on the deal.

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