U.S. IPO Weekly Recap: Growth IPOs Take The Lead In A 5-IPO Week

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Includes: BEER, GHSI, IHRTQ, NGM, PSTL, RUHN, SCPL, SILK, TRVI, TW
by: Renaissance Capital IPO Research
Summary

Five IPOs raised $1.4 billion in the IPO market this past week.

Silk Road Medical took the top spot, spiking 81% on its first day.

Tradeweb priced above the range and offered additional shares to raise $1.1 billion, or 58% more than expected.

Chinese e-commerce platform Ruhnn Holding raised $125 million by pricing at the midpoint, before dropping 37% on its first day, the worst for a tech IPO in over 20 years.

Billion-dollar NASH biotech NGM Biopharmaceuticals priced at the high end of the range but traded down. Medical food micro-cap Guardion Health Sciences, which raised $5 million, also fell below issue.

Five IPOs raised $1.4 billion in the IPO market this past week. Silk Road Medical (NASDAQ:SILK) took the top spot, spiking 81% on its first day. The company priced well above its range to raise $120 million, 60% more than anticipated. It follows in the footsteps of recent high-flying, high-growth medical device maker ShockWave Medical (NASDAQ:SWAV).

Tradeweb (NASDAQ:TW) priced above the range and offered additional shares to raise $1.1 billion, or 58% more than expected. The company boasts strong growth and free cash flow, along with a close peer (MarketAxess) that investors can peg a valuation to.

Chinese e-commerce platform Ruhnn Holding (NASDAQ:RUHN) raised $125 million by pricing at the midpoint, before dropping 37% on its first day, the worst for a tech IPO in over 20 years. It recovered slightly by week-end, but had numerous issues.

Billion-dollar NASH biotech NGM Biopharmaceuticals (NASDAQ:NGM) priced at the high end of the range but traded down. Medical food micro-cap Guardion Health Sciences (NASDAQ:GHSI), which raised $5 million, also fell below issue. One SPAC, Latin America-focused Replay Acquisition (NYSE:RPLA.U) raised $250 million.

5 IPOs and 1 SPAC During the Week of April 1st, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 04/05

Silk Road Medical

$120M

$675M

25%

+81%

+79%

Sells medical devices to treat carotid artery disease.

Tradeweb Markets

$1,080M

$6,191M

8%

+33%

+35%

Electronic trading platform backed by Blackstone and Thomson Reuters.

Replay Acquisition

$250M

$313M

0%

+1%

+1%

Blank check company formed to acquire a business in Argentina or Brazil.

NGM Biopharmaceuticals

$107M

$1,146M

7%

-8%

-6%

Phase 2 biotech developing therapies for NASH and type 2 diabetes.

Guardion Health Sciences

$5M

$94M

14%

-8%

-8%

Sells medical food and devices for retinal diseases.

Ruhnn Holding

$125M

$1,034M

0%

-37%

-32%

E-commerce platform used by Chinese internet celebrities to sell fashion items.

Six companies submitted initial filings this past week, led by recently-restructured radio giant iHeartMedia (OTCPK:IHRTQ), Scientific Games spinoff SciPlay (SCPL), and small but fast-growing medical device maker TransMedics (TMDX).

6 Filings During the Week of April 1st, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

SciPlay

$200M

Consumer Discretionary

BofA ML

Scientific Games' social gaming unit offering casino-style mobile games.

TransMedics

$86M

Health Care

Morgan Stanley

Medical device company that provides a system for organ transplants.

Trevi Therapeutics (TRVI)

$86M

Health Care

Leerink

Clinical stage biotech developing therapies for neurological disorders.

Bricktown Brewery (BEER)

$17M

Consumer Discretionary

ThinkEquity

Oklahoma-based operator of 14 casual dining restaurants serving in-house beers.

iHeartMedia

$1,500M

Communication Services

Goldman

Restructured radio station operator with the US's largest footprint.

Postal Realty Trust (PSTL)

$115M

Real Estate

Stifel

Recently-formed REIT that manages and leases properties to the USPS.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/4/19, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 had a gain of 15.5%. Renaissance Capital's IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Elanco (NYSE:ELAN) and VICI Properties (OTC:VICI). The Renaissance International IPO Index was up 11.1% year-to-date, while ACWX was up 12.6%. Renaissance Capital's International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include SoftBank (OTCPK:SFTBY) and Xiaomi (XI).

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