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U.S. IPO Weekly Recap: NASH Biotech Jumps 69% As Multi-Billion Dollar Companies Join The Pipeline

Nov. 16, 2019 12:40 PM ETETNB, YAYO, OCFT, NUZE, OCG

Summary

  • A biotech and a micro-cap ridesharing rental provider entered the public market this past week, and seven companies submitted initial filings.
  • After delaying its offering in the previous week, 89bio priced its upsized $85 million IPO at the midpoint and popped 30% on its first day, the second highest of the 4Q19 so far, before finishing the week up 69%.
  • YayYo, which operates a fleet management and auto rental platform for ridesharing drivers, raised $11 million to command a $118 million market cap.

A biotech and a micro-cap ridesharing rental provider entered the public market this past week, and seven companies submitted initial filings.

After delaying its offering in the previous week, 89bio (ETNB) priced its upsized $85 million IPO at the midpoint and popped 30% on its first day, the second highest of the 4Q19 so far, before finishing the week up 69%. The company's target indication NASH represents a multi-billion-dollar market with no FDA-approved therapy, and 89bio's FGF21 analog showed positive Phase 1 data in healthy volunteers. That said, it has yet to demonstrate proof-of-concept in NASH patients.

YayYo (OTC:YAYO), which operates a fleet management and auto rental platform for ridesharing drivers, raised $11 million to command a $118 million market cap. The company more than tripled sales in the 1H19 while EBITDA swung positive. However, the auto rental industry is highly competitive, and YayYo's relatively small operations didn't bolster investor confidence. The company finished down 10%.

2 IPOs During the Week of November 11th, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 11/15

89bio

$85M

$225M

0%

+30%

+69%

Phase 1 biotech developing therapies for NASH and other metabolic diseases.

YayYo

$11M

$118M

-50%

-11%

-10%

Operates a fleet management and auto rental platform for ridesharing drivers.

Reynolds Consumer Products (REYN), a leading provider of household and kitchen products, and Brazilian financial services provider XP (XP) both filed for estimated $1 billion IPOs. Ping An's OneConnect Financial Technology (OCFT), which provides financial services software, filed for an estimated $500 million US IPO. All three could fetch valuations as high as $5 billion.

Chinese human resources software provider CDP Holdings (CDP) filed to raise $125 million, financial software unicorn Bill.com Holdings (BILL) filed to raise $100 million, coffee packager NuZee (

This article was written by

Renaissance Capital provides pre-IPO research to institutional investors and investment banks. The Firm manages two IPO-focused funds: The Renaissance IPO ETF (NYSE: IPO) and the Renaissance International IPO ETF (NYSE: IPOS). Individual investors can get a free overview of the IPO market on www.renaissancecapital.com, and try a free trial of our premium platform, IPO Pro (ipopro.renaissancecapital.com). Through Renaissance Capital’s pre-IPO research service, institutional investors get an independent opinion, in-depth fundamental analysis, and customizable financial models on all IPOs.

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