Three IPOs raised $2.3 billion this past week, led by Dun & Bradstreet’s (NYSE:DNB) billion-dollar deal. All three IPOs upsized their deals and priced above the range.
Commercial data analytics provider Dun & Bradstreet raised $1.7 billion at a $9 billion market cap. The long-standing company was taken private in February 2019 by a consortium led by FNF’s Bill Foley for $6.1 billion, half the size of its EV at pricing. The overhauled management team is now attempting to accelerate the company’s historically lackluster growth, though the company remains highly levered post-IPO. Dun & Bradstreet finished 23%.
Lemonade (NYSE:LMND), an online self-serve renters and homeowners insurance platform, raised $319 million at a market cap of $1.7 billion. The company is fast-growing and highly unprofitable company saw a 144% increase in gross earned premiums in the 1Q20 and has shown the ability to win first-time insurance buyers. Lemonade finished 139%.
Accolade (NASDAQ:ACCD), a healthcare benefits management platform for self-insured employers, raised $220 million at a market cap of $1.2 billion. Accolade’s margins have been steadily improving, but the fast-growing company remains highly unprofitable. Accolade finished 35%.
Three SPACs also went public this past week. Goldman Sachs’ second blank check company GS Acquisitions Holdings II (NYSE:GSAHU) raised $700 million, 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 29th, 2020|
|Provides online self-serve renters and homeowners insurance.|
|Provides a healthcare benefits management platform for self-insured employers.|
|Dun & Bradstreet||$1,723M||$9,048M||10%||+15%||+23%|
|Provides commercial data analytics services.|
|GS Acquisition II||$700M||$875M||0%||+5%||+5%|
|Second blank check company formed by Goldman Sachs.|
|Blank check company formed by investment firm Capstar Partners.|
|Blank check company formed by EcoR1 Capital targeting the biotech industry.|
Ten IPOs and five SPACs submitted initial filings. Jamf (JAMF.RC), which provides workflow software for apple devices, filed for an estimated $300 million IPO. Environmental management and remediation service provider Montrose Environmental Group (MEG) filed to raise $160 million. Tax software platform Vertex (VERX) filed to raise $100 million. Biotechs Nurix Therapeutics (NRIX) and Annexon (ANNX) both filed to raise $100 million. Inozyme Pharma (INZY) filed to raise $86 million. Four micro-cap companies filed; Israeli pain relief biotech PainReform (PRFX) filed to raise $25 million, Chinese biomass energy producer CN Energy (CNEY) filed to raise $23 million, Phase 2 neurodevelopment biotech PaxMedica (PXMD) filed to raise $17 million, and pancreatic cancer biotech Sun BioPharma (OTCQB:SNBP) filed 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 29th, 2020|
|Annexon||$100M||Health Care||JP Morgan|
|Phase 1 biotech developing therapies for complement-mediated disorders.|
|Ascendant Digital Acq.||$300M||SPAC||UBS|
|Blank check company targeting an interactive digital entertainment business.|
|CN Energy||$23M||Utilities||Network 1|
|Produces wood-based activated carbon and biomass energy.|
|East Resources Acq.||$300M||SPAC||Wells Fargo|
|Blank check company formed by Terrence Pegula targeting the North American energy industry.|
|Inozyme Pharma||$86M||Health Care||BofA|
|Preclinical biotech developing therapies for diseases of abnormal mineralization.|
|Nurix Therapeutics||$100M||Health Care||JP Morgan|
|Preclinical biotech developing small molecule therapies for cancer.|
|Phase 2 biotech developing therapies for neurodevelopmental disorders.|
|Property Solutions Acq.||$200M||SPAC||EarlyBird|
|Blank check company formed by Benchmark Real Estate Group targeting the real estate industry.|
|Sun BioPharma||$12M||Health Care||Craig-Hallum|
|Clinical-stage biotech developing small molecule therapies for pancreatic cancer.|
|Provides comprehensive tax software for businesses.|
|Deerfield HealthTech Acq.||$125M||SPAC||Deutsche Bank|
|Third healthcare-focused blank check company formed by Deerfield Management and Robert Barasch.|
|GO Acquisition||$500M||SPAC||Credit Suisse|
|Blank check company formed by the founders of GLG Partners and Certares targeting the travel industry.|
|Provides software for managing workflows across Apple devices.|
|Provides environmental assessment, management, and remediation services.|
|Phase 2 Israeli biotech developing therapies for post-operative pain relief.|
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public 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%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (NASDAQ:ZM) and Uber (NYSE:UBER). The Renaissance International IPO Index was up 16.8% year-to-date, while the ACWX was down 10.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Xiaomi.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.