IPO Boutique comments on Stoke Therapeutics, Inc. (STOK)

Company: Stoke Therapeutics, Inc.
Symbol: STOK
Description: They are pioneering a new way to treat the underlying causes of severe genetic diseases by precisely upregulating protein expression.
Shares: 6.7 million
Price Range: $14.00-$16.00
Market Cap: $425m-$485m
Trade Date: Thursday, 6/20
Underwriter(s): JP Morgan, Cowen, Credit Suisse
Co-Manager(s): Canaccord Genuity
Terms Added: 6-7-19

LINK TO PROSPECTUS

6/17/19, 11:05am ET — Stoke Therapeutics, Inc. (STOK) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is oversubscribed. The underwriter states that the books are scheduled to close Monday at 4pm in anticipation for a Wednesday debut. There is no mention of insider buying on the cover of the prospectus. This company has a license agreement with Cold Spring Harbor Laboratory and the Univ of Southampton. Notable existing shareholders include Apple Tree Partners (65.3% Pre-IPO stake and RTW Investments (11.9% pre-IPO stake). The company is gaining buzz for its Targeted Augmentation of Nuclear Gene Output platform (TANGO) in which they can deliver in a highly precise, durable and controlled manner disease-modifying therapies to a broad range of relevant tissues. They designed their lead product candidate, STK-001, to treat Dravet syndrome, a severe and progressive genetic epilepsy. Their latest fundraising round was in October 2018 at $8.93. Sector dedicated sources are very intrigued with this company. Additionally, there is a strong underwriting lineup on this deal.  It should be noted that there are a large amount of biotech offerings on the schedule this week (6) and next week (4). This and Personalis Inc (PSNL) are our two “favorite” biotech offerings this week. Please monitor for potential information. Rating = 3. 

6/18/19, 9:45am ET — Stoke Therapeutics, Inc. (STOK) — Channel checks just completed, are currently revealing, according to underwriter guidance that the deal is multiple-times oversubscribed. The underwriter is currently guiding pricing above the prevailing $14.00-$16.00 range. A biotech IPO has not priced  above range, according to our records, since Allakos Inc (ALLK) in July 2018 (opened +51%, currently +140% vs. issue px). Due to the strength and demand for this IPO, we are increasing the rating on this deal from a ‘3’ to a ‘4’ Needless to say, this and Personalis Inc (PSNL) remain our two “favorite” biotech offerings this week. Rating = 4. 

Stoke Therapeutics (STOK) priced an upsized offering of 7.89mm shares  (originally 6.7mm) at $18.00 ($2.00 above range) and opened at $27.21 for a gain of 51.2% at first trade.