In the last few days, we’ve seen things starting to pick up. One deal we’ve been anticipating launched this week and we will be publishing a note on is GAN Limited (GAN) along with a full transcript. If you like DraftKings (DKNG) you will want to know about this one.
Last week we had four deals price, three SPACs and another strong biotech IPO that jumped 61% from the issue price. These deals raised a total of $1.285B.
ORIC Pharma (ORIC) is the third straight biotech to come to market in April that experienced both strong IPO demand and a very enthusiastic market. Zentalis (ZNTL) is up 30%, Keros (KROS) is up 25% and last week ORIC gained 61%.
We still think a big and under-appreciated story in these markets is the SPAC space. Among the three deals priced last week was the second from Social Capital Hedosophia III (IPOC) and today we will see the Social Capital Hedosophia II (IPOB) begin trading in the market after closing their deal last night.
Both of these come on the back of the resounding success of their first deal (IPOA) which became Virgin Galactic (SPCE).
I announced last week that we have launched a service to closely cover these SPAC transactions because there are excellent IPO opportunities there that are in the markets but poorly covered. I’d encourage you to sign up, at least for the free membership! You can visit that site here: SPAC IPO Advisory.
There will be more pricings this week with biotech Lyra Therapeutics (LYRA) which has a potential product offering localized drug delivery for diseases of the nasal passage like chronic rhinosinusitis (CRS) which is claimed to affect 14 million in the US alone. It’s a smaller deal at $50M with a $200M market value at the mid-point. This one sounds a little niche but I’ll still take a closer look at the roadshow anyway.
There is also a cannabis-focused SPAC, Collective Growth Group (CGRO) expected for Thursday night.
Finally, we have GAN Limited (GAN) which is in marketing and scheduled to price next week. This is one we have liked and been waiting for. They provide the software for online casino gaming and sports betting. It’s a small deal with third-tier banks but we will be providing full coverage. The shares are already listed on the LSE.
In terms of filings, we had a few small ones last week but the quality is pretty low. We are looking for Albertsons (ACI), a huge grocery operator to kick off their roadshow soon. Thanks to COVID-19, grocers are doing very well from Kroger (KR) to Grocery Outlet (GO).
The Candyman
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