U.S. IPO Weekly Recap: The February IPO Market Kicks Off With 2 Biotechs
Summary
- The February IPO market kicked off with two cancer-focused biotechs, joined by four SPACs. New filers trickled into the pipeline with one IPO and four SPACs submitting initial filings.
- CAR-T biotech Arcellx priced at the low end to raise $124 million at a $583 million market cap.
- Four SPACs went public this past week led by energy-focused Kimbell Tiger Acquisition, which raised $200 million.
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The February IPO market kicked off with two cancer-focused biotechs, joined by four SPACs. New filers trickled into the pipeline with one IPO and four SPACs submitting initial filings.
CAR-T biotech Arcellx (ACLX) priced at the low end to raise $124 million at a $583 million market cap. The company’s sole clinical-stage candidate, CART-ddBCMA, reported strong initial Phase 1 data in 19 evaluable relapsed or refractory multiple myeloma patients, delivering a 100% overall response rate. Arcellx currently plans to initiate a Phase 2 trial in late 2022, which it believes will be sufficient to submit a BLA. Arcellx finished up 12%.
Micro-cap Nuvectis Pharma (NVCT) priced at the low end of the downwardly revised range to raise $16 million at a $65 million market cap. Nuvectis is currently developing two in-licensed candidates. Its lead candidate began a Phase 1 trial for advanced solid tumors in December 2021, and the other candidate is in preclinical development. Nuvectis finished down 35%.
Four SPACs went public this past week led by energy-focused Kimbell Tiger Acquisition (TGR.U), which raised $200 million.
Trading in the IPO market continues to be volatile. New issuers delivered mixed performances during January, and the IPO Index capped off a red month with its best day since 2020, though the rise was short-lived.
| 6 IPOs During the Week of January 31st, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/04 |
| Arcellx (ACLX) | $124M | $583M | -6% | +12% | +12% |
| Phase 1 biotech developing next-gen CAR-T therapies for blood cancers. | |||||
| Kimbell Tiger Acquisition (TGR.U) | $200M | $250M | 0% | +1% | +1% |
| Blank check company formed by Kimbell Royalty Partners targeting the energy and natural resources industry. | |||||
| Murphy Canyon Acquisition (MURFU) | $115M | $151M | 0% | +0% | +0% |
| Blank check company formed by Presidio Property Trust targeting the real estate industry. | |||||
| Blue World Acquisition (BWAQU) | $80M | $104M | 0% | +0% | +0% |
| Blank check company targeting marine-related businesses. | |||||
| Alset Capital Acquisition (ACAXU) | $75M | $98M | 0% | +0% | +0% |
| Blank check company backed by Alset EHome International targeting real estate. | |||||
| Nuvectis Pharma (NVCT) | $16M | $65M | -62% | -35% | -35% |
| Phase 1-ready biotech developing in-licensed precision therapies for cancer. | |||||
One IPO submitted an initial filing: UK-based cannabis firm Akanda (AKAN) filed to raise $20 million.
Four SPACs submitted initial filings led by Seven Oaks Acquisition II (SVOBU), which filed to raise $250 million to target businesses with good ESG practices.
| 5 Filings During the Week of January 31st, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Seven Oaks Acquisition II (SVOBU) | $250M | SPAC | JonesTrading |
| Blank check company targeting firms with strong ESG practices. | |||
| Global Robotic Drone Acq. (GRDAU.RC) | $100M | SPAC | EF Hutton |
| Blank check company targeting the Asia-Pacific drone technology sector. | |||
| Prime Number Acquisition (PNACU) | $60M | SPAC | Prime Num. Cap. |
| Blank check company targeting the tech-enabled financial sectors. | |||
| Ace Global Acquisition II (AGBAU.RC) | $65M | SPAC | EF Hutton |
| Blank check company targeting decarbonization and the gaming and e-commerce sectors. | |||
| Akanda (AKAN) | $20M | Health Care | Boustead |
| UK cannabis producer with cultivation facilities in Southern Africa. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/3/2022, the Renaissance IPO Index was down 24.6% year-to-date, while the S&P 500 was down 6.0%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW).
The Renaissance International IPO Index was down 11.4% year-to-date, while the ACWX was down 2.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK:VOLAF) and Kuaishou (OTCPK:KUASF).
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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