U.S. IPO Weekly Recap: Agora Pops 153% While Albertsons Falls Flat In A 6 IPO Week

Six IPOs raised a combined $1.7 billion this past week, all of which began trading on Friday in the single busiest day of 2020 so far. API platform Agora (NASDAQ:API) skyrocketed 153% in the best first day pop since 2019 IPO Beyond Meat (NASDAQ:BYND). Albertsons (NYSE:ACI) finally managed to go public, its third attempt, after slashing its price and deal size due to valuation pushback, a rare occurrence this quarter. The indiscriminate buying in the biotech space also appears to be softening, with Fusion Pharma (NASDAQ:FUSN) pricing up, but trading flat. The biggest filing came from Bill Ackman’s SPAC, Pershing Square Tontine (PSTHU), targeting $3 billion.

Communication API platform Agora priced well above the range to raise $350 million at a $2.2 billion market cap. Based in Shanghai and Santa Clara, the fast-growing company turned profitable in the 1Q20, and it is in a unique position to benefit from pandemic-driven demand for tools that allow companies to embed video, audio, and messaging. Its peers have traded well, and it came to market at a large discount to close peer Twilio (NYSE:TWLO).

The quarter’s only IPO to price below the range, Albertsons raised $800 million at a $7.8 billion market cap. Albertsons is the fourth largest grocer in the US with leading market shares in a majority of its MSAs. Despite strong recent trends, it has had a mixed track record over the last few years, with net store closures and flat margins. Albertsons finished down 3%.

Hearing loss biotech Akouos (NASDAQ:AKUS) priced its upsized offering at the upwardly-revised price point to raise $213 million at a $582 million market cap. The company’s lead candidate AK-OTOF is in preclinical studies to correct hearing loss by gene replacement, with a Phase 1/2 trial expected in 2021. Akouos finished up 29%.

Phase 1 cancer biotech Fusion Pharmaceuticals (FUSN) priced its upsized deal above the range to raise $213 million at a $774 million market cap, but finished flat. The company’s novel lead candidate combines an immunotherapy with a radioactive isotope to kill solid tumors, though its trial results so far have been mixed.

Crypto mining company Ebang International Holdings (NASDAQ:EBON) priced slightly below the midpoint to raise $101 million at a $685 million market cap, before dropping 4%. The third-largest Bitcoin mining equipment maker, its revenue fell 66% last year while gross margin swung negative. Close peer Canaan (NASDAQ:CAN) has underperformed since its 2019 IPO.

Surgical infection biotech PolyPid (NASDAQ:PYPD) upsized its offering and priced at the midpoint to raise $60 million at a $319 million market cap. The Israeli biotech’s lead candidate D-PLEX100 is currently in a Phase 3 trial for bone surgical site infections (SSIs), with a Phase 3 trial for abdominal SSIs set for the 3Q20. PolyPid finished up 19%.

Three SPACs also went public this past week. Financial services SPAC Fusion Acquisition (FUSEU) and auto SPAC Kensington Capital Acquisition (KCAC.U) both upsized their deals to raise $305 million and $200 million, respectively. Asia-focused SPAC Brilliant Acquisition (BRLIU) raised $40 million.

9 IPOs During the Week of June 22nd, 2020

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 06/26

Agora

$350M

$2,216M

18%

+153%

+153%

Chinese provider of APIs for developers to embed voice, video, and messaging.

Akouos

$213M

$582M

13%

+29%

+29%

Preclinical biotech developing gene therapies for inner ear disorders.

PolyPid

$60M

$319M

0%

+19%

+19%

Phase 3 biotech developing extended-release drugs to prevent surgical site infections.

Fusion Acquisition

$305M

$380M

0%

+2%

+2%

Blank check company targeting the financial services industry.

Kensington Acquisition

$200M

$244M

0%

+1%

+1%

Blank check company targeting the automotive industry.

Fusion Pharmaceuticals

$213M

$774M

13%

+0%

+0%

Phase 1 biotech developing radiopharmaceuticals for solid tumors.

Brilliant Acquisition

$40M

$53M

0%

+1%

+0%

Blank check company targeting an Asia Pacific business.

Albertsons

$800M

$7,845M

-16%

-3%

-3%

US grocer operating under Albertsons, Safeway, and other banners.

Ebang International

$101M

$685M

-5%

-4%

-4%

Makes equipment for cryptocurrency mining in China.

Eight IPOs and six SPACs submitted initial filings this past week. The largest filing came from Pershing Square Tontine Holdings, a blank check company formed by Bill Ackman of Pershing Square targeting “Mature Unicorns,” which plans to raise $3 billion in what would be the year’s largest offering to date, as well as the largest SPAC offering ever. Tech SPAC Artius Acquisition (AACQU), formed by Artius Capital and the former CEO of Worldpay, filed to raise $525 million. Asia-focused SPAC Malacca Straits Acquisition (MLACU) filed to raise $125 million, Brazil-focused SPAC HPX Corp. (HPX.U) filed to raise $200 million, consumer SPAC D8 Holdings (DEH.U) filed to raise $250 million, and tech SPAC dMY Technology Group II (DMYD.U) filed to raise $200 million.

Solid tumor biotech Relay Therapeutics (RLAY) filed to raise $200 million. Immuno-oncology biotechs iTeos Therapeutics (ITOS) and ALX Oncology Holdings (ALXO), digital cell biology company Berkeley Lights (BLI), and cloud banking software provider nCino (NCNO) all filed to raise $100 million. Kidney disease diagnostics developer Renalytix AI (RNLX) and wound treatment device maker ACell (ACLL) both filed to raise $86 million, and autoimmune disease biotech Pandion Therapeutics (PAND) filed to raise $75 million.

14 Filings During the Week of June 22nd, 2020

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

ACell

$86M

Health Care

UBS

Makes medical devices for wounds and soft tissue surgical defects.

ALX Oncology Holdings

$100M

Health Care

Jefferies

Phase 1 immuno-oncology biotech developing CD47 pathway-blocking therapies.

Berkeley Lights

$100M

Health Care

JP Morgan

Provides a single cell manipulation platform for drug discovery and development.

D8 Holdings

$250M

SPAC

UBS

Blank check company targeting a global consumer brand.

dMY Technology Group II

$200M

SPAC

UBS

Second blank check company formed by Niccolo de Masi and Harry You targeting an app business.

HPX Corp.

$200M

SPAC

Credit Suisse

Blank check company targeting a business in Brazil.

Malacca Straits Acq.

$125M

SPAC

BTIG

Blank check company targeting a businesses in Southeast Asia.

Pandion Therapeutics

$75M

Health Care

Goldman

Phase 1 biotech developing engineered T cells for autoimmune diseases.

Artius Acquisition

$525M

SPAC

Credit Suisse

Blank check company formed by Artius Capital and the former CEO of Worldpay targeting the tech sector.

iTeos Therapeutics

$100M

Health Care

JP Morgan

Phase 1/2 immuno-oncology biotech developing therapies for various cancers.

Relay Therapeutics

$200M

Health Care

JP Morgan

Phase 1 biotech developing small molecule therapies for solid tumors.

Renalytix AI

$86M

Health Care

JP Morgan

Commercializing AI-powered diagnostic tests for kidney disease.

nCino

$100M

Technology

BofA

Offers cloud-based software for financial institutions.

Pershing Square Tontine

$3,000M

SPAC

Citi

Blank check company formed by Bill Ackman of Pershing Square targeting “Mature Unicorns”.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/25/20, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 was down 4.6%. Renaissance Capital’s IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Zoom Video (NASDAQ:ZM) and Uber (NYSE:UBER). The Renaissance International IPO Index was up 18.3% year-to-date, while the ACWX was down 10.3%. Renaissance Capital’s International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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