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U.S. IPO Weekly Recap: 2019 Ends With A Quiet 1-IPO Week

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Includes: AHI, BDTX, MKD, ONEM
by: Renaissance Capital IPO Research
Summary

Just one company began trading in the shortened week that marked the end of 2019.

Three healthcare companies and a SPAC submitted initial filings.

Chinese chemicals e-commerce firm Molecular Data priced at $5.38, below the midpoint of the $5 to $7 range.

Just one company began trading in the shortened week that marked the end of 2019. Three healthcare companies and a SPAC submitted initial filings.

Chinese chemicals e-commerce firm Molecular Data (NASDAQ:MKD) priced at $5.38, below the midpoint of the $5 to $7 range, to raise $62 million at a $684 million market cap. The company was China's largest e-commerce platform for chemicals by gross merchandise value in 2018. Likely sold to Chinese investors, Molecular Data initially traded as high as 121% above offer, but finished down 19%.

1 IPO During the Week of December 30th, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 01/03

Molecular Data

$62M

$684M

-10%

+2%

-19%

Offers e-commerce, software, and other services to Chinese chemicals companies.

Phase 1 cancer biotech Black Diamond Therapeutics (BDTX) and health clinic chain 1Life Healthcare (ONEM), also known as One Medical, both filed to raise $100 million. Topical treatment producer Avadim Health (AHI) and Asia-focused SPAC Newborn Acquisition (NBACU) both filed to raise $50 million.

4 Filings During the Week of December 30th, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Black Diamond Tx

$100M

Healthcare

JPMorgan

Phase 1-ready biotech developing targeted kinase inhibitors for solid tumors.

Newborn Acquisition

$50M

SPAC

Chardan

Blank check company led by equity investment veterans targeting businesses operating in Asia and the US.

One Medical

$100M

Healthcare

JPMorgan

Membership-based health clinic operator with 77 locations.

Avadim Health

$50M

Healthcare

Raymond James

Develops and sells topical treatments for immune, muscular, and skin health.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/2/20, the Renaissance IPO Index was up 1.8% year-to-date, while the S&P 500 had a gain of 0.8%. Renaissance Capital's IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was up 1.0% year-to-date, while the ACWX was up 1.2%. Renaissance Capital's International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.

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