Three IPOs raised $2.3 billion last week, led by a $1 billion deal from Dun & Bradstreet (NYSE: DNB). All three IPOs were larger and prices exceeded the range.

Business data analytics provider Dun & Bradstreet raised $1.7 billion for a market capitalization of $9 billion. The long-established company was privatized in February 2019 by a consortium led by Bill Foley of FNF for $6.1 billion, half the size of its EV at market price. The revamped management team is now trying to accelerate the company’s historically weak growth, although it remains heavily indebted after the IPO. Dun & Bradstreet finished at 23%.

Lemonade (NYSE:LMND), a self-service online rental and home insurance platform, raised $319 million for a market capitalization of $1.7 billion. The fast-growing and highly unprofitable company saw its gross earned premiums increase 144% in the first quarter of the year 20 and demonstrated its ability to win first-time insurance customers. Lemonade finished at 139%.

Accolade (NASDAQ:ACCD), a health benefits management platform for self-insured employers, has raised $220 million for a market capitalization of $1.2 billion. Accolade’s margins are steadily improving, but the fast-growing company remains unprofitable. Accolade finished at 35%.

Three SPACs were also released last week. Goldman Sachs’ second blank company, GS Acquisitions Holdings II (NYSE:GSAHU) raised $700 million, Goldman Sachs’ TMT-focused SPAC Capstar Special Purpose Acquisition (CPSRU) raised $240 million, and EcoR1 Capital’s biotech SPAC Panacea Acquisition (NYSE:PANAU) raised $125 million.

 

6 IPOs during the week of June 29, 2020
IssuerBusiness DealSize IPO of
Market Capat
Price vs.
midpoint
Return from the first day Back to
07/03
Lemonade $319M $1,655M 18% +139% +139%
Offers online self-service insurance for tenants and landlords.
Accolade $220M $1,182M 10% +35% +35%
Provides a health benefits management platform for self-insured employers.
Dun & Bradstreet $1,723M $9,048M 10% +15% +23%
Provides business data analysis services.
Acquisition of GS II $700M $875M 0% +5% +5%
Second blank cheque company created by Goldman Sachs.
Acquisition of Capstar $240M $290M 0% n/a +0%
A blank cheque company formed by the investment firm Capstar Partners.
Acquisition of Panacea $125M $161M 0% n/a +0%
Blank company created by EcoR1 Capital for the biotechnology industry.

 

Ten IPOs and five venture capital firms have filed initial applications. Jamf (JAMF.RC), which provides workflow software for apple devices, has filed an IPO application estimated at $300 million. Environmental management and remediation services provider Montrose Environmental Group (MEG) filed an application to raise $160 million. Vertex Taxation Software Platform (VERX) filed an application for $100 million. Biotechnology companies Nurix Therapeutics (NRIX) and Annexon (ANNX) both filed applications to raise $100 million. Inozyme Pharma (INZY) filed an application to raise $86 million. Four micro-capitalization companies have applied; Israel’s PainReform (PRFX) has applied to raise $25 million, China’s CN Energy (CNEY) has applied to raise $23 million, PaxMedica (PXMD) has applied to raise $17 million, and Sun BioPharma (OTCQB:SNBP) has applied to raise $12 million.

Digital entertainment SPAC Ascendant Digital Acquisition (ACNDU) filed to raise $300 million, Real Estate SPAC Property Solutions Acquisitions (PSACU) filed to raise $200 million, healthcare SPAC Deerfield Healthcare Technology Acquisitions (DFHTU) filed to raise $125 million, travel SPAC GO Acquisition (GOAC.RC) filed to raise $500 million, and North American energy SPAC East Resources Acquisition (ERES.U) filed to raise $300 million.

 

15 filings during the week of June 29, 2020
IssuerBusiness DealSize Sector LeadUnderwriter
Annexon $100M Health Care JP Morgan
Phase 1 Biotechnology is developing therapies for complement mediated disorders.
Ascendant Digital Acq. $300M SPAC UBS
Blank business targeting an interactive digital entertainment company.
CN Energy $23M Utilities Network 1
Produces wood-based activated charcoal and biomass energy.
East Resources Acq. $300M SPAC Wells Fargo
A blank company formed by Terrence Pegula for the North American energy industry.
Inozyme Pharma $86M Health Care BofA
Preclinical biotechnology developing therapies for diseases of abnormal mineralization.
Nurix Therapeutics $100M Health Care JP Morgan
Preclinical biotechnology developing small molecule-based therapies for cancer.
PaxMedica $17M Health Care Benchmark
Phase 2 biotechnology is developing therapies for neurodevelopmental disorders.
Acq. of property solutions $200M SPAC EarlyBird
Blank company created by Benchmark Real Estate Group, targeting the real estate sector.
Sun BioPharma $12M Health Care Craig-Hallum
Clinical stage biotechnology developing small molecule-based therapies for pancreatic cancer.
Vertex $100M Technology Goldman
Provides complete tax software for businesses.
Deerfield HealthTech Acq. $125M SPAC Deutsche Bank
Third blank cheque health care company created by Deerfield Management and Robert Barasch.
Acquisition of GO $500M SPAC Credit Suisse
NSF cheque company created by the founders of GLG Partners and Certares, targeting the travel industry.
Jamf $300M Technology Goldman
Provides software for workflow management on Apple devices.
Montrose Environmental $160M Industry BofA
Provides environmental assessment, management and remediation services.
PainReform $25M Health Care Maxim
Phase 2: Israeli biotechnology is developing therapies for the relief of post-operative pain.

 

Overview of the IPO market

The Renaissance IPO indices are baskets weighted according to the market capitalization of newly listed companies. As of 7/1/20, the Renaissance IPO Index was up 31.5% year-to-date, while the S&P 500 was down 3.6%. The Renaissance Capital (NYSE:IPO) IPO ETF follows the index, and the main ETFs are Zoom Video (NASDAQ:ZM) and Uber (NYSE:UBER). The Renaissance International IPO Index is up 16.8% year-to-date, while the ACWX is down 10.4%. The Renaissance Capital International IPO ETF (NYSE:IPOS) tracks the index, and the ETF’s major holdings include Meituan-Dianping and Xiaomi.

Original Post

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

 

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2020-07-04