U.S. IPO Week Ahead: 2 Billion-Dollar Biotechs In A 4-IPO Week

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Includes: ALEC, AVDR, BFL, CSTX, GOSS, HARP, KLDO, MITO, PSTX
by: Renaissance Capital IPO Research
Summary

Four IPOs plan to raise $523 million in the week ahead.

Biotechs are still a strong force in the IPO market with three early-stage immunotherapy plays on the docket, including two with proposed billion-dollar valuations.

A micro-cap Florida bank rounds out the group. Two blank check companies are also on the week's IPO calendar.

Four IPOs plan to raise $523 million in the week ahead. Biotechs are still a strong force in the IPO market with three early-stage immunotherapy plays on the docket, including two with proposed billion-dollar valuations. A micro-cap Florida bank rounds out the group. Two blank check companies are also on the week's IPO calendar.

Several deals may launch on Monday, mostly biotechs, like Stealth BioTherapeutics (NASDAQ:MITO), Kaleido Biosciences (KLDO), Cirius Therapeutics (CSTX), and Poseida Therapeutics (PSTX), as well as medical device maker Avedro (NASDAQ:AVDR).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Alector (NASDAQ:ALEC)
South San Francisco, CA

$176M
$1,391M

$18 - $20
9,250,000

Morgan Stanley
BofA ML

Phase 1 biotech developing therapies for neurodegeneration.

Monocle Acquisition (NASDAQ:MNCLU)
New York, NY

$150M
$193M

$10
15,000,000

Cowen
Chardan

Blank check company formed to acquire an aerospace & defense or industrial business.

Gossamer Bio (NASDAQ:GOSS)
San Diego, CA

$230M
$1,010M

$16
14,375,000

BofA ML
Leerink

Developing in-licensed immunotherapies for asthma and other indications.

Harpoon Therapeutics (NASDAQ:HARP)
South San Francisco, CA

$76M
$377M

$13 - $15
5,400,000

Citi
Leerink

Phase 1 biotech developing T cell immunotherapies for various cancers.

BankFlorida (NASDAQ:BFL)
Palm Beach Gardens, FL

$42M
$51M

$9.50 - $10.50
4,200,000

B. Riley FBR

Community bank with one branch in Southern Florida.

Wealthbridge Acquisition (HHHU)

$50M
$65M

$10
5,000,000

Chardan

Blank check company targeting the air transportation industry in China.

Alector plans to raise $176 million (48% from insiders) at a $1.4 billion valuation. While Alzheimer's is notoriously difficult to treat, it has remained an area of high interest, and Alector offers a novel approach focused on repairing the brain's immune system. Backed by Polaris and OrbiMed, it has secured a collaboration with AbbVie (NYSE:ABBV) worth up to $1.2 billion, including $205 million paid upfront.

Gossamer Bio is targeting a $230 million capital raise at a $1.0 billion valuation. The company's experienced management team previously sold Receptos for $7.2 billion, and its asthma and PAH targets are each multi-billion dollar markets. However, the company's candidates are all in-licensed or acquired, and it only commenced operations in 2017.

Formed by MPM Capital, Harpoon Therapeutics is developing T cell immunotherapies for cancers. New investors do not have much clinical data to go on, but AbbVie has committed up to $600 million in milestones, plus royalties.

After postponing in the 4Q, BankFlorida re-launched its IPO with lower terms. It plans to raise $42 million at a market cap of $51 million.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/31/19, the Renaissance IPO Index was up 18.0% year-to-date, while the S&P 500 had a gain of 8.0%. 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 up 4.6% year-to-date, while the ACWX was up 7.6%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors