U.S. IPO Week Ahead: IPO Market Takes A Breather In A 1-IPO Week
Summary
- Following back-to-back eight-IPO weeks, the IPO market is taking a breather with just one IPO scheduled for the week ahead.
- That said, several companies could launch on Monday to price later in the week.
- Pharmaceutical royalty acquirer Royalty Pharma plans to raise $1.9 billion at a $15.8 billion market cap.
Following back-to-back eight-IPO weeks, the IPO market is taking a breather with just one IPO scheduled for the week ahead. That said, several companies could launch on Monday to price later in the week.
Pharmaceutical royalty acquirer Royalty Pharma (RPRX) plans to raise $1.9 billion at a $15.8 billion market cap. The company is the global leader in pharma royalty agreements, with an estimated 50%+ historical market share, and has spent over $18 billion on royalty acquisitions since its inception to build a diverse portfolio of marketed and late-development-stage therapies. Royalty Pharma is highly profitable and generates strong cash flow, and it intends to pay a dividend with 2.3% yield at the midpoint.
U.S. IPO Calendar | |||
|---|---|---|---|
Issuer | Deal Size | Price Range | Top |
Royalty Pharma | $1,855M | $25 - $28 | JP Morgan |
Buys royalty interests in marketed and late-stage biopharmaceuticals. | |||
While there is only one deal on the calendar for next week, the IPO pipeline is filling up. Companies that could launch in the week ahead include prenatal disease screening company Progenity (PROG) and South Korean mobile game developer DoubleDown Interactive (DDI), both of which are on file to raise $100 million.
Street research is expected for and lock-up periods will be expiring for two companies.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/11/20, the Renaissance IPO Index was up 18.0% year-to-date, while the S&P 500 was down 7.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include DocuSign (DOCU) and Uber (UBER). The Renaissance International IPO Index was up 14.0% year-to-date, while the ACWX was down 13.3%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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