Company: Revolution Medicines, Inc.
Symbol: RVMD
Description: They are a clinical-stage precision oncology company focused on developing novel targeted therapies to inhibit elusive, high-value frontier targets within notorious growth and survival pathways, with particular emphasis on the RAS and mTOR signaling pathways.
Shares: 10 million 14 million
Price Range: $14.00-$16.00 $16.00-$17.00
Market Cap: $741m-$846m $910m-$967m
Trade Date: Thursday, 2/13
Underwriter(s): JP Morgan, Cowen, SVB Leerink, Guggenheim
Terms Added: 2-3-20
02/10/20, 9:50am ET — Revolution Medicines, Inc. (RVMD) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is multiple-times oversubscribed. The underwriters have also indicated that the possibility of an upsize is on the table. The books are scheduled to close Tuesday at 4pm in anticipation for a Thursday debut. Even though it is early in the week, the underwriters have already stated to “manage expectations accordingly”. Looking at the prospectus, there is no mention of insider buying on the cover but the company does have a collaboration with Sanofi on its lead product candidate. The company also has “an agreement” with Amgen to help conduct its Phase 1/2 trial. Existing shareholders include Third Rock Ventures (28.8% pre-IPO stake), The Column Group (18.6% pre-IPO stake) and Sanofi Research Invest (7.8% pre-IPO stake). Currently, the biotech trend in syndicate is one that is highly favorable with continued strong performance from 2020 IPOs and Secondaries thus far. The underwriter lineup on this offering is solid and the existing shareholders are highly-regarded in the industry. Due to the strength of the deal, we are raising the rating on this IPO from a ‘3’ to a ‘4’. Please montior for potential information. Rating = 4.
02/11/20, 7:50am ET — Revolution Medicines, Inc. (RVMD) — Revolution Medicines, Inc. has amended terms for it’s upcoming IPO. Terms are now as follows: Price Range was $14.00-$16.00 it is now $16.00-$17.00 and the shares offered were 10mm…they have been up-sized to 14mm. This was done thru an S-1/A filing (see below). We will have further comments forthcoming.
https://www.sec.gov/Archives/edgar/data/1628171/000119312520030511/d799036ds1a.htm
02/11/20, 9:35am ET — Revolution Medicines, Inc. (RVMD) — Channel checks just completed, are currently revealing, according to underwriter guidance, that the deal is MANY multiple-times oversubscribed. In our terms, we would consider this deal exponentially oversubscribed. The increased range and size of the deal is a clear sign that there is “euphoric demand” in the deal. While no official price guidance is available at this time, we would anticipate a high-end or above-range pricing of the new $16-$17 range. Rating = 4.
02/12/20, 9:55am ET — Revolution Medicines, Inc. (RVMD) — Channel checks just completed, are currently revealing, according to underwriter guidance, that the deal remains MANY multiple-times oversubscribed with a high-quality book. The underwriters are guiding to the high-end or above the upwardly-revised $16-$17 range. It is our opinion that management will be heavily involved in the allocation process. This IPO is set for a very strong debut on Thursday. Rating = 4.
Revolution Medicines (RVMD) priced a full size deal, 14.0mm shares, at the high end of the upwardly-revised range, $17.00, and opened at $28.21 for a gain of 65.9% at first trade.
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