The IPO market is preparing for another busy week with 8 transactions that should bring in $ 2 billion


The initial market for public offerings in the United States is preparing for another busy week with eight key transactions expected to generate about $ 2 billion, led by Azek Co., a manufacturer of materials for life products in full swing. air.

Last week was the busiest of the year to date, with eight transactions and two Special Purpose Acquisition Vehicles (PSPCs) hitting the market at a brisk pace.

“For the first time since June 2018, the eight IPOs have increased more than expected, either by fixing prices above the range, or by increasing their offers,” according to comments from Renaissance Capital, an institutional research provider and exchange traded funds linked to IPOs.
The market went through a period of sleep during the coronavirus pandemic before waking up last week. While the secondary market is on fire – the volume of stock offerings in May dollars is the largest since 2014, according to BTIG, while companies decided to strengthen their liquidity positions after the outbreak of the pandemic – New issuers had to wait for the stock market to recover from its pandemic lows. So far in 2020, there have been 43 IPOs, down 31% from the same period a year ago. But the fund traded on the Renaissance IPO exchange
+ 1.82%

performed strongly, with a 22.6% return over the period, thanks to the inclusion in the index of recent IPOs of digital companies and others that benefit from homework products and services , such as Zoom Video Communications Inc.
+ 0.58%,
Slack Technologies Inc.

and biotechnology Moderna Inc.
+ 1.22%,
which is developing a COVID-19 vaccine.
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Last week’s offers included the most significant IPO of the year to date, that of Warner Music Group Corp.
+ 6.27%,
which returned to public markets after nine years as a private entity and raised $ 1.93 billion by selling 77 million shares at a price of $ 25 each, the top of its price range of $ 23 at $ 26. This title ended the week up 20%.
The biggest contract this week will be Azek
which will raise $ 625 million at the top of its price range.
“We are an industry-leading designer and manufacturer of beautiful, low-maintenance, eco-friendly products focused on the highly attractive and fast-growing outdoor lifestyle market,” says the company in its prospectus.
The agreement is underwritten by 14 banks, led by Barclays. The proceeds will be used to repay outstanding debt and for general business needs. During the first six months of fiscal year 2020 to March 31, the company recorded a net loss of $ 5.8 million which was narrower than the loss of $ 20.8 million recorded during the reporting period. the previous exercise. Sales reached $ 411.6 million, compared to $ 357.4 million.
The flyer acknowledges the challenges posed by the coronavirus pandemic and says it has cut staff and the lines of credit used to deal with them. He also concedes that he has a heavy debt of $ 1.2 billion.
The company’s main partner is Trex Inc.
which is profitable. Trex posted net earnings of $ 42.4 million in the first quarter on sales of $ 200 million. This is an increase from net income of $ 31.6 million a year ago and sales of $ 179.6 million. The Trex stock has withstood the pandemic and gained 38% since the start of the year, surpassing the S&P 500, down 0.8%.
The second biggest deal of the week will be online car dealer Vroom Inc.
which aims to raise up to $ 356 million. Vroom is also in deficit, but revenues are growing at an orderly rate. The company’s net losses reached $ 143 million in 2019, more than the loss of $ 85.2 million recorded in 2018. In the first quarter, it lost $ 41.1 million, compared to a loss of 27, $ 1 million in the first quarter of 2019, says its prospectus.
Sales increased 39% to $ 1.2 billion in 2019. For the quarter ended March 31, sales increased 60% to $ 375.8 million, said Vroom.
To find out more, read:Vroom IPO: five things to know about online used car salesman
Vroom’s main counterpart is Carvana Inc.
which went public in 2017. This stock has rebounded since March, when most of the United States was sheltered to slow the spread of the virus. Carvana shares are trading more than 600% above the company’s IPO price in 2017.
Vaxcyte vaccine manufacturer

aims to raise $ 210 million at the top of its price range and will use the profits to fund clinical research.
“Its main candidate, VAX-24, is a 24-valent experimental pneumococcal conjugate vaccine designed to provide broad-spectrum coverage of Merck’s Pneumovax 23 with an immunogenicity profile comparable to Pfizer Prevnar 13,” says Renaissance Capital. .
The company hopes to advance VAX-24 in clinical trials in the second half of 2021.
The remaining offers are as follows:
• Burning Rock Biotech, a Chinese cancer test maker, which aims to raise up to $ 210 million by selling 13.5 million US depository shares at a price of $ 13.50 to $ 15.50 each. The company has applied to be listed on Nasdaq under the stock symbol “BNR”.
• Avidity Biosciences Inc.
which specializes in muscle disorders, plans to offer 10 million shares priced at $ 14 to $ 16 each to raise up to $ 160 million. The company has applied to join Nasdaq under the symbol “RNA”. Cowen, SVB Leerink, Credit Suisse and Wells Fargo are subscribers to the agreement, with the proceeds being used to develop treatments for DMD and muscle wasting, as well as working capital.
• Generation Bio Co.
biotechnology specializing in gene therapy treatments for rare diseases plans to offer 7.4 million shares priced at $ 16 to $ 18 each to raise up to $ 133.2 million. The company has applied to be listed on Nasdaq under the ticker symbol “GBIO”. J.P. Morgan, Jefferies, Cowen and Wedbush PacGrow sign the agreement. The proceeds will be used to finance R&D, to develop platform technologies and for general business purposes.
• uCloudlink, a Chinese mobile data market, aims to raise $ 53 by selling 2.6 million US depository shares at a price of $ 18 to $ 20.50. The company has applied to join Nasdaq under the symbol “UCL”. The proceeds of the transaction, which are underwritten by I-Bankers Securities, Valuable Capital Ltd., Tiger Brokers and Loop Capital Markets, will be used to finance R&DS, for general purposes and for potential acquisitions.
• Lantern Pharma
biotechnology working on cancer treatments, aims to raise $ 26.52 million by selling 1.56 million shares at a price of $ 15 to $ 17 each. The company has applied to join Nasdaq under the symbol “LTRN”. The sole responsible for accounting is ThinkEquity, Dougherty & Co. and Paulson Investment Co. acting as co-managers.
• To complete the list, SPAC Hudson Executive Investment
which aims to raise up to $ 300 million. PSPCs, or blank check companies, do not have a fixed activity until they acquire one or more companies with the money collected during an IPO. The company plans to acquire a fintech or healthcare business, according to its prospectus.
The Renaissance IPO ETF rose 1.3% on Monday, while the S&P 500 rose 0.5%.
Now read:He sold his business for billions, and then used almost all of the profits to invest in two stocks – and only two stocks.


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