On Friday, digital sports betting and entertainment company DraftKings (NASDAQ: DKNG) went public on the Nasdaq without an initial public offering (IPO), despite major sporting event being postponed due to the coronavirus pandemic. Instead, DraftKings completes a reverse merger with gaming technology provider SBTech and the Special Purpose Acquisition Company (SPAC) Diamond Eagle Acquisition Corp, who already had a listing on the stock exchange. The company received a market value of more than $6 million with the newly public listing.
Beyond DraftKings, the IPO market revived from its near halt as one biotech IPO and three SPACs priced last week. ORIC Pharmaceuticals (NASDAQ: ORIC) offered 7.5 million shares at an upsized $16 per share to raise $120 million in its debut. The biotech is focusing on therapies for prostate cancers and advanced or metastatic solid tumors and will use its post-IPO funds for clinical trials through 2022 and will need more funding eventually. The stock increased more than 61% on its first day, following the recent trend in biotech IPOs.
For the SPACs, Social Capital Hedosophia Holdings Corp. III (NYSE: IPOCU), targeting non-U.S. tech, raised $720 million with 72 million offered shares, CC Neuberger Principal Holdings I (NYSE: PCPLU) raised $360 million from 36 million shares and Chardan Healthcare Acquisition 2 Corp (NYSE: CHAQU) raised $85 million from 8.5 million offered shares.
The week ahead has one more biotech and two SPACs scheduled to begin trading on public markets. Lyra Therapeutics plans to raise $64.4 million from 3.5 million shares offered between $14-$16 each. This biotech focuses on developing new delivery systems for ear, nose and throat diseases using its proprietary platform XTero. The SPACs include Social Capital Hedosophia Holdings, which is a joint venture with Social Capital Hedosophia Holdings Corp. III and Cannabis SPAC Collective Growth Corp, which is co-founded by former Canopy Growth (NYSE: CGC) CEO Bruce Linton and National Hemp Association Chairman Geoffrey Whaling.