A tidal wave of deals washed over the initial public offering (IPO) market last week ahead of the U.S. presidential election on Tuesday, with 11 traditional IPOs and two direct listings going public. The diverse group of listings was met with a volatile market, with the new stocks leaving the week with a mix of gains and losses. A few companies also postponed or suspended their offerings as well.
Two electric car start ups listed on U.S. exchanges last week after their successful reverse mergers with blank check companies; a new emerging trend as direct listings become more popular this year. Lordstown Motors (NASDAQ: RIDE) closed its deal with DiamondPeak Holding Corp on Monday and expects to receive about $675 million from the merger. The electric carmaker plans to use the fund to produce its Endurance model truck, which it plans to deliver in summer 2021. Meanwhile, Fisker (NYSE: FSR) finalized its deal with Spartan Energy Acquisition Corp on Friday and expects to receive $1 billion from the deal. Fisker plans to use the fund to start production on its first electric car model, the Fisker Ocean, in late 2022.
For traditional IPOs, Lufax Holding Ltd (NYSE: LU) raised close to $2.4 billion in its debut, making it 2020's second-largest IPO. The Chinese financial services platform priced its shares that the high end of its range at $13.50 each. The company maintains high growth and positive earnings, despite operating in a highly regulated market in China. Nonetheless, the stock was seen to be priced at a premium valuation and investors responded negatively, with Lufax ending the week down 4.8%.
Root Inc. (NASDAQ: ROOT) followed, pricing its upsized deal above its range at $27 each to raise about $724 million. The fast-growing mobile auto insurer has suffered for its exponential growth, showing the loss of $330 million on revenue of $432 million recently. Despite its popularity, investors were privy to its numbers, with Root finishing the week down 11%.
Leslie's, Inc. (NASDAQ: LESL) priced its shares above the range at $17 each to raise $680 million in its debut. This is the pool supplies retailer's return to public markets after being taken private decades ago. Leslie's is the leading U.S. provider in its market and has benefited from the coronavirus pandemic's home ownership surge. Investors were onboard, with the stock ended its first week up 29%.
Allegro MicroSystems, Inc. (NASDAQ: ALGM) raised $350 million from pricing its shares at the high end of its range at $14 each. The chip producer designs magnetic sensor and power ICs for the auto and industrial industries. The company demonstrated profit generation across the semiconductor industry's typical market cycles and investors were impressed, with Allegro finishing up 31%.
Atea Pharmaceuticals, Inc. (NASDAQ: AVIR) priced its upsized offering at the high end of its range at $24 each to raise $300 million. The biotech is currently testing its potential oral therapy for COVID-19, with the candidate demonstrating safety and some effectiveness against the virus in preclinical studies. The stock was a hit, ending its first week up 26%.
MediaAlpha, Inc. (NYSE: MAX) raised roughly $176 million from pricing its share at the midpoint of $19 each. The business-to-business advertisement tech platform for insurance carriers has grown rapidly and has been profitable since its beginnings. The stock had the biggest market gain of the week, ending up 78%.
Galecto, Inc. (NASDAQ: GLTO) raised $85 million from pricing its shares at the midrange of $15 each. The biotech is currently developing for a therapeutics for fibrosis and other related diseases. Unimpressed, investors largely sold the stock, with Galecto finishing down 5%.
Biodesix Inc (NASDAQ: BDSX) raised $75 million from pricing shares at the midrange of $18 each. The company provides diagnostic solutions for lung diseases through a proprietary artificial intelligence platform. Unlike other early-stage IPOs, the company did not have VC backers and ended its first week down 31%.
SQZ Biotechnologies Co (NYSE: SQZ) priced its shares at the low end of its range at $16 each to raise about $71 million. The company's lead candidate is currently in Phase I clinical trials and expects data in the first half of 2021. Investors did not go crazy for this biotech, with the stock ending its week down 17%.
Also listed on the Toronto Stock Exchange, Gatos Silver, Inc (NYSE: GATO) raised $150 million by pricing its U.S. IPO at the low end of $7 each. The company is developing silver and zinc mining operations in Mexico, ending the week down 4%.
Three IPOs postponed their offerings this past week, with Mavenir Private Holdings withdrawing its IPO on Friday after delaying it earlier in the week. Two mortgage lenders, AmeriHome Mortgage Company and Caliber Home Loans, postponed their offerings due to current lackluster demand.
No offerings at set to debut this week due to the market uncertainty surrounding the U.S. presidential election.