It wasn’t too long ago when the IPO market was at a grinding halt.
Now, it couldn’t be much hotter.
In the midst of the teeth of the coronavirus pandemic, a few healthcare IPOs tested the market and came public with successful debuts and extremely strong aftermarket performance. The four in particular that came in late March & early April (IMRA, ZNTL, KROS, ORIC) are currently trading, on average, 145%, above their issue price as of the close Friday (6/5). 
That IPO success is now boiling over to the most recent IPOs during the first week of June.. In the IPO market’s busiest week thus far of 2020, a total of eight deals came with an average first trade of 45.6% above issue. The biggest deals, Warner Media Group (WMG) and ZoomInfo (ZI) with a collective cash-raise of $2.9bn, closed Friday’s session 19.8% and 85.2% above the issue price, respectively. Healthcare IPOs were met with heavy demand last week led by Legend Biotech Corporation (LEGN) and Pliant Therapeutics (PLRX) opening prints’ of 60.9% and 56.3%, respectively.
The gains make the IPO space attractive, once again, for investors and begs the question: what’s on deck?
First up, Vroom Inc (VRM) — an innovative, end-to-end ecommerce platform that is transforming the used vehicle industry by offering a better way to buy and a better way to sell used vehicles. Despite a current footprint of less than 15 cities, they are looking to sell 18.75mm shares at $18-$20 which would translate to a $2.02b-$2.25b valuation. The IPO is scheduled to trade Tuesday. Our ratings & research on this IPO is available for IPO Boutique Traditional Clients on Sunday and Premium Clients received information on Friday.
Our sources have stated as many as six other deals will debut next week. One of which, Burning Rock Biotech Limited, launched its IPO Friday for a debut on June 12. We project the other five deals to launch on Monday to be:
- Progenity Inc.
- Avidity Biosciences
- Generation Bio
- Royalty Pharma plc
- Vaxcyte Inc
And with a quick glance of the pipeline…there are no signs of things slowing down. Five IPOs filed publicly on Friday (Agora, Fusion Pharma, PolyPid, Akouos Inc & ArcherDX Inc) translating to a potential debut in three-to-four weeks.
With so much quantity and so much paper…this is where IPO Boutique can be an asset to your investment.
We deliver research to help you understand the important nuggets of each company. Even more valuable is the color and commentary that we put out from our underwriter contacts and buyside sources. We combine this with historical trends and past performance from underwriting lineups to produce a rating on each deal. We judge ourselves based on first trade. Our goal is to put IPO investors into a winning position on the first tick…or if a deal is “dangerous”, we seek to caution investors of a potential disaster.
While IPOs is what we are “known for”…our secondary service has been just as valuable with companies rushing to capital markets to raise capital in the midst of the Coronavirus crisis.
Indicate with Confidence — we would love the opportunity to serve your syndicate needs. Please contact Daniel@IPOBoutique.Com or register for a weekly, monthly or annual subscription on our site.
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