Four deals priced last week to start the new year. Three priced at the bottom or below the range and the one that priced in the middle, IMAB, dropped 10% immediately in after market trading. So despite record highs the IPO market was lukewarm last week. These deals were all fairly mediocre as well so we’ve yet to really get a good test of the IPO market in 2020. Here’s the rundown:

Priced Last Week:

Velocity Financial (VEL) – This is a small commercial mortgage lender. We liked the deal as a safer long-term play then some others in this space. Our notes are here: IPO Candy Quick Look: Velocity Financial. Investors were price sensitive on this one and it priced $1 below the range at $13 and traded up some to end the week at $13.51.

Phoenix Tree Holdings (DNK) – This one seems very risky. It’s a short-term rental business in China that aspires to be a “lifestyle brand.” However since they do not control their underlying cost structure it is hard to see how they will ever generate strong returns. They also priced $1 below the range at $13.50 and it ended the week unchanged. That’s just under a $3B valuation.

LIZHI (LIZI) – This company is a podcast platform in China. Revenues will be just over $200M this year and are growing 75% however both gross and net margins are declining. The deal priced at the bottom of the range at $11 and traded up slightly to end the week at $11.63.

I-Mab Biopharma (IMAB) – This Chinese biotech priced in the range at $14 but traded down from there immediately to end the week at $12.50. Seems like a pretty strong management team and advisory board and lots of partnerships around the world. Also the company has 11 compounds in development with 2 in Phase 3. Keeping an eye on this one.

There are no deals scheduled to price this week.

New Filings:

There were only 4 new filings with only two of them being “real”: Atotech (ATC) is a large specialty chemicals company planning a $1B offering with Cit. Revolution Medicines (RVMD) is yet another cancer therapy company.

 

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