U.S. IPO Week Ahead: No IPOs, But Plenty Of Potential Launches

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Includes: ALIT, ARDT, AVDR, CSTX, FVCB, GNFT, LEVI, MITO, NIO, PRNB, PSTX, QTT, TCRR, TIGR, YI
by: Renaissance Capital IPO Research
Summary

No IPOs are scheduled for the week ahead, unusual for mid-March.

With the VIX Volatility Index comfortably below 20 and strong YTD returns in the IPO Index, the IPO market is receptive to new issuers, reinforced by this past week's trading from ShockWave Medical and Futu Holdings.

So instead of pricings, look out for IPO launches.

No IPOs are scheduled for the week ahead, unusual for mid-March. It may be due to some lingering effects from the government shutdown, as the SEC works through its backlog.

With the VIX Volatility Index comfortably below 20 and strong YTD returns in the IPO Index, the IPO market is receptive to new issuers, reinforced by this past week's trading from ShockWave Medical (SWAV +86% from IPO) and Futu Holdings (FHL; +28%).

So instead of pricings, look out for IPO launches. Futu's positive trading should encourage close competitor UP Fintech (NASDAQ:TIGR) to begin marketing its deal. Jean giant Levi Strauss (NYSE:LEVI) and Blackstone-backed Alight (NASDAQ:ALIT) also appear to be strong candidates. Recent updates from CAR T biotech Poseida Therapeutics (PSTX) and hospital chain Ardent Health (ARDT) make those deals more likely to launch. NASH biotech Genfit (GNFT) is able to start its roadshow later in the week, and close comp Cirius Therapeutics (CSTX) may decide to join the IPO calendar as well.

Five 2018 IPO lock-ups are expiring in the week ahead, including China-based NIO (NYSE:NIO), 111 Inc (NASDAQ:YI) and Qutoutiao (NASDAQ:QTT), pemphigus biotech Principia Biopharma (NASDAQ:PRNB), and Virginia-based FVCBankcorp (NASDAQ:FVCB). Street research is expected for medical device maker Avedro (AVDR; BofA/JPM; -16% from IPO) and biotechs TCR2 Therapeutics (TCRR; Jefferies/Leerink; 4% from IPO) and Stealth BioTherapeutics (MITO; Jefferies/Evercore; +40% form IPO).

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/7/19, the Renaissance IPO Index was up 26.8% year-to-date, while the S&P 500 had a gain of 10.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (OTC:VICI) and Altice (NYSE:ATUS). The Renaissance International IPO Index was up 8.0% year-to-date, while the ACWX was up 8.9%. 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.