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

Feb. 02, 2019 3:29 PM ETMITO, KLDO, CSTX, PSTX, GKOS, ALEC, GOSS, HARP, BFL3 Likes

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 (MITO), Kaleido Biosciences (OTC:KLDO), Cirius Therapeutics (CSTX), and Poseida Therapeutics (PSTX), as well as medical device maker Avedro (AVDR).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Alector (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 (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 (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 (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 (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 (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 (VICI) and Spotify (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

This article was written by

Renaissance Capital provides pre-IPO research to institutional investors and investment banks. The Firm manages two IPO-focused funds: The Renaissance IPO ETF (NYSE: IPO) and the Renaissance International IPO ETF (NYSE: IPOS). Individual investors can get a free overview of the IPO market on www.renaissancecapital.com, and try a free trial of our premium platform, IPO Pro (ipopro.renaissancecapital.com). Through Renaissance Capital’s pre-IPO research service, institutional investors get an independent opinion, in-depth fundamental analysis, and customizable financial models on all IPOs.
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