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US IPO Week Ahead: GoHealth takes the lead in a 4 IPO Week

Four IPOs and one SPAC plan to raise $1.5 billion in the week ahead, led by health insurance marketplace GoHealth (GOCO).

More deals could join the IPO calendar in the week ahead, including Apple workflow software provider Jamf (JAMF.RC), environmental remediation company Montrose Environment (MEG), digital cell biology company Berkeley Lights (BLI), and a handful of biotechs (ITOS, PAND, ALXO, ACLL).

Founder-led and backed by Centerbridge Partners, GoHealth (GOCO) plans to raise $751 million at a $6 billion market cap. Fast-growing and profitable, the company primarily focuses on the large and growing Medicare Advantage market. Close peer SelectQuote‘s (SLQT) May IPO was well received, though it has traded off slightly in the aftermarket.


Relay Therapeutics
(RLAY), a Phase 1 biotech developing therapies for solid tumors, plans to raise $250 million at a $1.5 billion market cap. The company’s lead candidate began a Phase 1 trial for advanced solid tumors in the 1Q20. However, the company’s drug discovery platform, Dynamo, relies on the use of a D. E. Shaw Research supercomputer.

Cloud banking software provider nCino (NCNO) plans to raise $217 million at a $2.8 billion market cap. Spun out of Live Oak (NYSE: LOB) in 2011, nCino has a track record of strong revenue growth and a sticky customer base. However, it is unprofitable, with losses expected to continue, and high implementation costs have weighed on its gross margin.

Specialty casualty insurer Trean Insurance (TIG) plans to raise $150 million at a market cap of $716 million. The company operates primarily in the $54 billion workers’ compensation insurance market. While its loss ratio improved in the 1Q20, the company saw a spike in its expense ratio, and its return on equity declined.


PTK Acquisition
(PTK.U), a blank check company formed by Chinese semiconductor veterans and dealmakers targeting a tech business, plans to raise $100 million at a market cap of $125 million. The company is led by CEO Peter Kuo, a co-founding Partner at Canyon Bridge Capital Partners, and CFO Timothy Chen, the CEO of VIA China.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
nCino (NCNO)
Wilmington, NC
$217M
$2,780M
$28 – $29
7,625,000
BofA
Barclays
Offers an end-to-end digital banking platform for financial institutions.
GoHealth (GOCO)
Chicago, IL
$751M
$5,957M
$18 – $20
39,500,000
Goldman
BofA
Medicare-focused health insurance marketplace.
Relay Therapeutics (RLAY)
Cambridge, MA
$250M
$1,476M
$16 – $18
14,700,000
JP Morgan
Goldman
Phase 1 biotech developing precision small molecule therapies for solid tumors.
Trean Insurance (TIG)
Wayzata, MN
$150M
$716M
$13 – $15
10,714,286
JP Morgan
Evercore ISI
Specialty casualty insurer in the US focused on workers’ compensation.
PTK Acquisition (PTK.U)
Los Angeles, CA
$100M
$125M
$10
10,000,000
Chardan
Blank check company formed by Chinese semiconductor veterans and dealmakers targeting a tech business.

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Street research is expected for five companies. On Monday, 7/13: Royalty Pharma (RPRX). On Tuesday, 7/14: Forma Therapeutics (FMTX), Genetron Holdings (GTH), and Repare Therapeutics (RPTX). On Wednesday, 7/15: Progenity (PROG).

Lock-up periods will be expiring for four companies on Wednesday, 7/15: I-Mab Biopharma (IMAB), LIZHI (LIZI), Phoenix Tree Holdings (DNK), and Velocity Financial (VEL).


IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/9/20, the Renaissance IPO Index was up 43.8% year-to-date, while the S&P 500 was down 2.4%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 27.4% year-to-date, while the ACWX was down 8.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.The article US IPO Week Ahead: GoHealth takes the lead in a 4 IPO Week originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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