Last week's initial public offering (IPO) market stayed active despite the shortened holiday trading week as the stock market becomes more predictable than the wild swings its was taking throughout most of the year. Three traditional IPOs and seven special purpose acquisition companies--which are remaining a big trend for Wall Street--priced last week, raising total proceed of $2.5 billion.
Ozon Holdings PLC (OZON ) raised the largest offering last week, pricing its upsized offering above the range at $30 per share to raise $990 million at a $5.4 billion market capitalization. The Russian e-commerce platform maintains a growing market share in the nation's underpenetrated e-commerce space, meaning that it has a lot of room for potential growth. Investors were encouraged by expanding global e-commerce trends, leading the stock to finish its first week up 30%.
Vision Marine Technologies Inc. (VMAR ) was next, pricing its upsized offering at the high end of its range at $10 per share to raise $24 million at a $79 million market capitalization. The company is making waves in the electric transportation evolution, currently offering four models of electric powerboats. Vision also has projects developing electric powertrains in the future. Investors were excited by another electric innovation company, with the stock ending the week up 42%.
HF Enterprises Inc. (HFEN ) was the only IPO to finish the week lower, with the company downsizing its offering and pricing its shares at the high end of $7 each to raise $15 million at a $60 million market capitalization. The holding company currently has investments in real estate, technology, and healthcare, and its revenues were severely impacted by the coronavirus pandemic. The stock ended the week down 13%.
The week ahead is positioned to be a fairly active one, with four traditional IPOs set to kick off what is anticipated to be a massive December for the IPO market.
17 Education & Technology Group Inc. (YQ ) is planning the largest debut this week, aiming to raised an upsized $362 million from 27.4 million shares offered in the range of $9.50 to $11.50 each. The Chinese education technology company has seen growth in demand throughout the year due to the pandemic, with revenues nearly quadrupling in the first nine months of 2020.
Seer, Inc. (SEER ) is next, planning to raise an upsized $182 million from 8.8 million shares offered between $16 to $18 each. The company is developing products aimed to commercialize proteome research. The company expects to have two Proteograph products by the end of the year.
Kinnate Biopharma Inc. (KNTE ) following, aiming to raise $207 million from 10 million shares offered between $16 to $18 each. The oncology-focused biotech's lead candidate is a Rapidly Accelerated Fibrosarcoma (RAF) inhibitor for the treatment of lung cancers. The company plans to file for an Investigative New Drug form with the Food and Drug Administration within the first half of 2021.
Sigilon Therapeutics, Inc. (SGTX ) is last, planning to raise $122 million from 5.6 million shares offered in the range of $17 to $19 each. The biotech's lead candidate is designed to prevent bleeding episodes in patients with hemophilia A and has recently initiated a Phase I/II trial.
In prelude to the hot IPO market that is expected next week, both Airbnb and DoorDash have set the terms for their traditional offerings, with the two companies looking to raise a combined $5 billion in debut.
Airbnb plans to raise $2.4 billion by offering 51.9 million shares at a price range of $44 to $50 each. The short-term rental company would command a market value of $32.3 billion at the mid-point of that range.
DoorDash expects to raise $2.6 billion by offering 33 million shares between the price range of $75 to $85 each. The online restaurant delivery provider--North America's largest--would command a market value of $30.8 billion at the mid-point of that range.
Both unicorns are anticipated to debut during the week of Dec. 7, 2020.
