The initial public offering market has begun to heat up with the summer season as stock market volatility begins to stabilize following the coronavirus market panic in March. Last week saw the introduction of two new healthcare-based companies and two special purpose acquisition companies (SPAC) to the market, all popping up by the end of the week.
For last week, SelectQuote, Inc. (NYSE: SLQT) offered 28.5 million shares priced at $20 each to raise $570 million at a $3.3 billion market cap, making the IPO the largest since March in terms of market cap. SelectQuote makes the majority of its earnings from selling Medicare Advantage and other insurance plans, reporting a revenue growth from those sectors of 44% for Full Year 2019 and 48% for the company's year-to-date. The stock finished its first week up 33%.
Inari Medical, Inc. (NASDAQ: NARI) priced its 8.2 million offered shares above its estimated range at $19 each to raise $156 million at a $1 billion market cap. The company is a maker of medical devices for venous diseases and blood clot removals, operating in a fast growing and profitable market. The stock ended the week surging up 124% from its initial pricing.
Finishing up last week, Glenview Capitals' healthcare-focused SPAC Longview Acquisition Corp. (NYSE: LGVWU) raised $360 million and B.Riley Principal Merger II (NYSE: BMRGU) raised $175 million to acquire a large enterprise.
The week ahead does not have any companies scheduled to price due to the shortened trading week, but a number of filings--including Pliant Therapeutics, Royalty Pharma, Dara Nexus Ltd, and Warner Music Group--show that the market is preparing for an explosive summer season.