CTO Cartu Jon Announced - U.S. IPO Weekly Recap: One Medical Pops 57.6% In 5-IPO Week - Jonathan Cartu Family Medical Clinic & Patient Care Center
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CTO Cartu Jon Announced – U.S. IPO Weekly Recap: One Medical Pops 57.6% In 5-IPO Week

U.S. IPO Weekly Recap: One Medical Pops 57.6% In 5-IPO Week

CTO Cartu Jon Announced – U.S. IPO Weekly Recap: One Medical Pops 57.6% In 5-IPO Week


Five companies entered the public market this past week. The health clinic unicorn 1Life Healthcare (One Medical) (ONEM) posted a 57.6% gain and was joined by titan of tin foil Reynolds Consumer Products (REYN), Black Diamond Therapeutics (NASDAQ:BDTX), Arcutis Biotherapeutics (ARQT), and AnPac Bio-Medical Science (NASDAQ:ANPC).

One Medical priced at the low end of the range to raise $245 million at a $1.95 billion market cap. The company, which owns and operates a 77 clinic network of membership-based primary-care clinics, expanded its gross margin and accelerated growth in the 9mo19.

In the largest household goods IPO ever, Reynolds priced within the range at $26 to raise $1.2 billion at a market cap of $5.3 billion. The company has cut $126 million in costs in the past two years and 65% of 2018 sales were from products with #1 market share. Reynolds finished up 10%.

Oncology biotech Black Diamond Therapeutics priced above the range to raise $201 million at a market cap of $672 million. The Phase 1-ready biotech boasted a first day pop of 108% despite its very early stage and limited portfolio, and finished up 97%.

Late-stage dermatology biotech Arcutis Biotherapeutics priced its upsized deal at the high end of the range, raising $159 million ($50 million from existing shareholders) at a market cap of $657 million. The company’s leading candidate is currently in two pivotal Phase 3 trials for psoriasis, with topline results expected in 1H21. Arcutis finished up 28%

Chinese cancer screening provider AnPac Bio-Medical Science priced its downsized IPO at the low end of the range to raise $16 million at a market cap of $134 million. The challenging environment for Chinese issuers has carried into 2020, and AnPac finished down 16%.

5 IPOs During the Week of January 27th, 2020

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 01/31

Black Diamond Tx

$201M

$672M

12%

+108%

+97%

Phase 1-ready biotech developing targeted kinase inhibitors for solid tumors.

One Medical

$245M

$1,952M

-7%

+58%

+58%

Operates 77 membership-based health clinics under the One Medical brand.

Arcutis Biotherapeutics

$159M

$657M

6%

+28%

+28%

Phase 3 biotech developing topical therapies for common skin diseases.

Reynolds Consumer

$1,226M

$5,272M

-2%

+10%

+10%

Leading provider of household and kitchen products.

AnPac Bio-Medical Science

$16M

$134M

-8%

-6%

-16%

Chinese provider of multi-cancer screening tests.

Only two SPACs filed this week. The third SPAC founded by former Citi executive Michael Klein, Churchill Capital III (CCXX.U) filed to raise $600 million. Mr. Klein’s first SPAC Churchill Capital acquired Clarivate Analytics (NYSE:CCC) in 2019. dMY Technology (DMYT.U) filed to raise $200 million and is looking to acquire a consumer technology business.

2 Filings During the Week of January 27th, 2020

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

dMY Technology Group

$200M

SPAC

Goldman

Blank check company targeting a consumer internet or mobile app business.

Churchill Capital III

$600M

SPAC

Citi

Third blank check company founded by dealmaker and former Citi executive Michael Klein.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/30/20, the Renaissance IPO Index was up 6.9% year-to-date, while the S&P 500 had a gain of 1.6%. Renaissance Capital’s IPO ETF (NYSE:IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was up 0.8% year-to-date, while the ACWX was down 1.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and SoftBank.

Original Post

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


CFOJonathan Cartu Medical Clinic

Jon Cartu

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