U.S. IPO Week Ahead: IPO Market Hits February Lull In 2-IPO Week

Just a biotech and a Chinese issuer to IPO in the week ahead as the market prepares for the February lull.

Early-stage oncology biotech Revolution Medicines (RVMD) is expected to raise $150 million at an $850 million market cap. Backed by Third Rock, the company’s lead candidate (a collaboration with Sanofi (NASDAQ:SNY)) is an RAS pathway SHP2 inhibitor and is currently in a Phase 1/2 trial. Another early-stage oncology biotech targeting kinase inhibitors, recent IPO Black Diamond Therapeutics (NASDAQ:BDTX) is currently up 106% as the hot streak for biotech IPOs continues.

Chinese online insurance marketplace Huize Holding (HUIZ) plans to raise $48 million at a $561 million market cap. The company is a licensed insurance intermediary and has served 6 million clients as of 9/30/19. Fewer than 10 outside investors have indicated intention to purchase up to $50 million worth of shares in the IPO (103% of the deal size).

Lock-up periods will be expiring for two companies and Street research is expected for four companies.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Huize
Shenzhen, China

$48M
$561M

$9.40 – $11.40
4,650,000

Citi
CICC

Operates an online insurance marketplace in China.

Revolution Medicines
Redwood City, CA

$150M
$850M

$14 – $16
10,000,000

JP Morgan
Cowen

Phase 1/2 biotech developing targeted cancer therapies using RAS pathway inhibitors.

The following IPOs are expected to price this week:

Revolution Medicines, a Phase 1/2 biotech developing targeted cancer therapies using RAS pathway inhibitors, plans to raise $150 million by offering 10 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Revolution Medicines would command a market value of $850 million. Revolution Medicines, which was founded in 2015, booked $48 million in sales over the last 12 months. The Redwood City, CA-based company plans to list on the Nasdaq under the symbol RVMD. J.P. Morgan is the lead bookrunner on the deal.

Huize Holding, which is a licensed insurance intermediary operating platform, plans to raise $48 million by offering 4.7 million ADSs at a price range of $9.40 to $11.40. At the midpoint of the proposed range, Huize Holding would command a market value of $561 million. The company is headquartered in Shenzhen, China and plans to list on the Nasdaq under the symbol HUIZ. Citi is the lead bookrunner on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/6/20, the Renaissance IPO Index was up 8.4% year-to-date, while the S&P 500 had a gain of 3.6%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was up 4.4% year-to-date, while the ACWX was down 0.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and SoftBank.

Original Post

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

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