US IPO Week Ahead: The IPO calendar is primed for a small pick-up

There are currently no IPOs on the calendar for the week ahead, but that could quickly change. In the past month, five companies have launched and priced IPOs within one week. US grocer Albertsons (ACI), Chinese crypto mining company Ebang International (EBON), and Swiss oncology biotech ADC Therapeutics (ADCT) are all primed for potential launches.

The IPO market is showing signs of life. Last week, three companies went public in the US, the busiest week for IPOs since February. The VIX Volatility Index also fell below 30 for the first time since February. The IPO Index is up more than 50% from its March low, with a year-to-date gain of more than 5%. While the IPO market remains off-limits for many companies, the ice has begun to thaw, especially for “quarantine-friendly” IPOs.

Albertsons Companies (ACI) is on file for an IPO we estimate could raise $2 billion. The large US grocery chain recently filed updated financial results, showing impressive growth since March.

Ebang (EBON) is on file to raise $100 million. It is the third largest maker of Bitcoin computing hardware in the world, behind top competitors Bitmain Technologies and Canaan (CAN). The latter, which completed a US IPO in November 2019, recently rallied more than 100% since mid-March, though it still trades well below its offer price. 

ADC Therapeutics (ADCT) is on file to raise $100 million. The biotech is developing antibody drug conjugates, and its pipeline consists of seven candidates targeting hematological malignancies and solid tumors. It was previously slated to raise $200 million at a $1.8 billion valuation in October 2019, but withdrew its deal due to adverse market conditions.

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Lock-up periods will be expiring for three companies. On Sunday, 5/10: 89bio (ETNB). On Monday, 5/11: YayYo (YAYO). On Wednesday, 5/13: TFI International (TFII). 

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/7/20, the Renaissance IPO Index was up 4.5% year-to-date, while the S&P 500 was down 10.8%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and DocuSign (DOCU). The Renaissance International IPO Index was down 2.1% year-to-date, while the ACWX was down 19.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
The article US IPO Week Ahead: The IPO calendar is primed for a small pick-up originally appeared on IPO investment manager Renaissance Capital’s web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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