U.S. IPO Week Ahead: IPO Market Slows During Short Holiday Week

There are no companies scheduled to price next week, though two micro-cap IPOs may price on a day-to-day basis: Chinese healthcare training platform Zhongchao (NASDAQ:ZCMD) and flooring roll-up F5 Finishes (FLRZ). A number of IPOs may launch on Tuesday, including preclinical gene therapy developer Passage Bio (PASG). Renaissance Capital’s IPO Index is up 11.2%, indicating new filing activity should also pick up in the week ahead.

Zhongchao, a Chinese internet platform for medical information, education, and training, plans to raise $15 million by offering 3.5 million shares at a price range of $4.00 to $4.50. At the midpoint, Zhongchao’s market cap would be $107 million. The company grew sales by 35% in the first half of 2019 to $7 million with net income of $1.7 million and it plans to use IPO proceeds of the offering to expand the business and upgrade platform technology.

F5 Finishes, a California-based commercial flooring roll-up, plans to raise $20 million by offering 4 million shares at a price of $5 per share. The company has lowered the price range twice; initially filing at a range of $9 to $11, then $7 to $8 before lowering to the current proposed price.

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 11.2% year-to-date, while the S&P 500 had a gain of 4.7%. 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 5.7% year-to-date, while the ACWX was down 0.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Xiaomi.

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