Four IPOs and six SPACs entered the public markets this past week led by CureVac (CVAC), which posted the largest first-day pop for a US IPO since 2005.
German biotech CureVac raised $213 million at a $2.8 billion market cap and soared 249% on its first day of trading. With a portfolio of mRNA-based therapies and vaccines, the company is developing a COVID-19 vaccine and has a Phase 1 candidate, which competes with other more advanced clinical candidates from large pharmas like AstraZeneca (AZN). While it has never advanced a candidate into late-stage trials. CureVac is operating in a hot space for investment as the race for a COVID-19 vaccine continues.
China's largest housing platform, KE Holdings (BEKE) priced above the range to raise $2.1 billion at a $23 billion market cap, the largest US IPO from a Chinese issuer since 2018. The company operates under the Lianjia and Beike brands and its strong market position, recent growth, and improving EBITDA margins prompted investors to value the company like its higher multiple high-growth peers. KE Holdings finished up 65%.
Insurance software provider Duck Creek Technologies (DCT) priced above the upwardly revised range to raise $405 million at a $3.5 billion market cap. Duck Creek has seen accelerating SaaS growth and strong revenue visibility due to sticky contracts. The company came to market above close peer and 2012 IPO Guidewire (GWRE), trading closer to its high-growth peers. Duck Creek finished up 48%.
Single-tenant retail commercial REIT NetSTREIT (NTST) priced below the range in a downsized IPO to raise $225 million at a $445 million market cap, and plans to offer a 4.4% yield based on the offer price. Its portfolio is 100% leased with large tenants, but it has provided rent deferral or abatements on 17% of its properties due to COVID-19. NetSTREIT finished flat.
