Another big wave of initial public offerings hit Wall Street last week, with 11 traditional IPOs, 15 special purpose acquisition companies (SPAC) and three direct listings joining public trading. September's IPO market transitioned into October with more company type variety than previous weeks, demonstrating the ongoing confidence both issuers and investors have towards new opportunities as the market recovers from March's crash.
The Direct Listings
The two big names of last week were Palantir Technologies Inc (NYSE: PLTR) and Asana Inc (NYSE: ASAN), both opting to list their public shares through a deal with an already public SPAC. Both stocks skyrocketed in their respective debuts, with Palantir opening 38% above its reference price, beginning trading at $10 per share and Asana opening 29% above its reference price at $27 per share. Yet, the high-growth loss ratio that affects direct listings made shares less appealing, leading both to end their first days below their openings. For the week, Palantir ended down 8% and Asana finished 4% lower.
The third surprise direct listing that received less market buzz was Thryv Holdings (NASDAQ: THRY), which opened traded at $14 per share and finished its first week up 3%. The marketing management and software company has had a bit of a troubled past. The company was previously known as Dex Media, which delisted from the Nasdaq (NASDAQ: QQQ) and declared bankruptcy in 2016. The company that emerged from restructuring later became Thryv Holdings in 2019.
The IPOs
Chindata Group Holdings Ltd (NASDAQ: CD) raised the largest offering last week, pricing its shares at the high end of its range at $13.50 each to raise $540 million in its debut. The Chinese data center operator has generated explosive revenue growth, operating six hyperscale data centers in China and one in Malaysia. The company is seeking to expand to the greater South Asian region, and it in the process of constructing five more centers in China and one in India. The stock finished its first week up 4%.
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) was next, raising just over $203 million from pricing its shares below its range at $13 each. The sporting goods retailer operates 259 locations within the United States, with its revenue depending heavily on consumer discretionary spending. Due to this type of company going public in a volatile climate as U.S. economic recovery slows, shares ended their first week relatively flat.
Pulmonx Corp. (NASDAQ: LUNG) raised the next highest offering, pricing shares above its already upwardly revised range at $19 each to raise $190 million in its public debut. The medical device maker currently offers a commercially available emphysema treatment that has been used on more than 20,000 patients through June 30, 2020. The company's second attempt at going public was highly successful, with shares ending the week up 121%.
C4 Therapeutics, Inc. (NASDAQ: CCCC) was close behind, pricing its upsized offering above the range at $19 per share to raise over $182 million. The early stage biotech is currently conducting four preclinical programs and expects to submit investigational new drug (I.N.D.) forms to the U.S. Food and Drug Administration (F.D.A.) for its lead candidates by year's end. The company finished the week up 34%.
Yalla Group Ltd (NYSE: YALA) followed, pricing its shares within its range at $7.50 each to raise roughly $140 million in its debut. The voice-centric social networking and entertainment platform is the largest of its kind in the Middle East/North Africa region. The company had about 12.5 million monthly users and 5.4 paying users in the second quarter of 2020. Investors were cold towards the company as they weighed its performance against peers, leaving the stock to finish its first week down 11%.
Mission Produce, Inc. (NASDAQ: AVO) was next, first downsizing and pricing its shares below its range at $12 each to raise $96 million in its debut. The company is a leading distributor of avocados in the United States and 24 other countries. While the company is profitable, it faces volatile produce pricing. The stock ended its first week up 4%
Oncorus, Inc. (NASDAQ: ONCR) followed, pricing its shares at the midpoint of its range at $15 to raise $87 million in its debut. The biotech's sole candidate is currently in a Phase I clinical trials with preliminary data expected to be released between the second half of 2021 and the second half of 2022. The stock ended the week up 7%.
Orphazyme A/S (NASDAQ: ORPH) was close behind, pricing its shares below its range at $11 each to raise $84 million in its public offering. The F.D.A. has recently accepted the biotech's new drug application for its lead candidate. Investors weren't too impressed, with the stock finishing down 2%.
Boqii Holding Ltd (NYSE: BQ) was next, pricing its shares at the low end of its range at $10 each to raise $70 million in its debut. The company operates as China's largest pat-focused e-commerce platform and online social community. The company has seen recent revenue declines, leading the stock to finish its week down 38%.
Immunome Inc. (NASDAQ: IMNM) came second to last, pricing its shares at the midpoint of its upsized range at $12 each to raise $39 million. The biotech's lead discovery programs lead them to expect to file an I.N.D. in the second half of 2021. The stock ended up 12%.
Finally, Lixiang Education Holding Co. Ltd (NASDAQ: LXEH) priced its share within its range at $9.25 each to raise an offering of about $31 million. The Chinese educational services provider is one of the 10 largest of its kind in Zhejiang, enrolling over 4,500 students. The company finished down 40%.