U.S. IPO Weekly Recap: 3 IPOs Close Out The 2Q In Shortened Holiday Week

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
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 07/03
Lemonade $319M $1,655M 18% +139% +139%
Provides online self-serve renters and homeowners insurance.
Accolade $220M $1,182M 10% +35% +35%
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.
Capstar Acquisition $240M $290M 0% n/a +0%
Blank check company formed by investment firm Capstar Partners.
Panacea Acquisition $125M $161M 0% n/a +0%
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
Issuer
Business
Deal
Size
Sector Lead
Underwriter
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.
PaxMedica $17M Health Care Benchmark
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.
Vertex $100M Technology Goldman
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.
Jamf $300M Technology Goldman
Provides software for managing workflows across Apple devices.
Montrose Environmental $160M Industrials BofA
Provides environmental assessment, management, and remediation services.
PainReform $25M Health Care Maxim
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.

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

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