U.S. IPO Weekly Recap: ORIC Pops 61% And SPACs Make A Comeback

The IPO market saw a jump in activity as one biotech and three SPACs went public this past week. The durability of the biotech industry was demonstrated once again, with ORIC Pharmaceuticals (ORIC) popping 61% on its first day. Four companies and one SPAC submitted initial filings.

Oncology biotech ORIC Pharmaceuticals priced its twice-upsized IPO at the high end to raise $120 million at a $493 million fully diluted market cap (+16% vs. original midpoint). Led by experienced executives from Ignyta, ORIC is developing an oral GR antagonist in two Phase 1b trials as combination therapies for prostate cancer and advanced or metastatic solid tumors. The company believes its $201 million in post-IPO cash will last into late 2022, but it will require additional funding to continue development after that. ORIC finished up 61%.

After a month-long blank check hiatus, three SPACs completed public offerings this past week. Chardan’s second healthcare-focused SPAC Chardan Healthcare Acquisition 2 (CHAQ.U) raised $85 million at a $106 million. Backed by CC Capital and Neuberger Berman, blank check company CC Neuberger Principal I (PCPL.U) upsized its deal to raise $360 million at a $485 million market cap. Chamath Palihapitiya and Ian Osborne’s Social Capital Hedosophia III (IPOC.U), which is targeting non-US tech, upsized its deal raise $720 million at an $870 million market cap.

Both CC Neuberger Principal I and Social Capital Hedosophia III revised their unit offerings prior to going public to improve the terms for investors. The revised units consist of one share of common stock and one-third of a warrant exercisable at $11.50, up from one-quarter.

4 IPOs During the Week of April 20th, 2020



Market Cap
at IPO

Price vs.

First Day

at 04/24

ORIC Pharmaceuticals






Phase 1 biotech developing small molecule therapies for treatment-resistant cancers.

CC Neuberger Principal I






Blank check company formed by CC Capital and Neuberger Berman.

Chardan Healthcare Acq 2






Second blank check company formed by Chardan Capital targeting the healthcare industry.

Social Hedosophia III






Third blank check company formed by Social Capital and Hedosophia targeting a non-US tech business.

Swiss Phase 2 oncology biotech ADC Therapeutics (ADCT) filed to raise $100 million, the company previously filed to raise $200 million in September 2019 before withdrawing its S1. Chinese cryptocurrency mining equipment maker Ebang International (EBON) filed to raise $100 million. Skillful Craftsman Education Technology (NGJY), an online education and technology service provider in China, filed to raise $15 million and 1847 Goedeker (GOED), an e-commerce platform for home goods, filed to raise $12 million. B. Riley Financial’s second eponymous SPAC B. Riley Principal Merger II (BMRG.U) filed to raise $200 million to acquire a company with an enterprise value of approximately $400 million to $1 billion.

5 Filings During the Week of April 20th, 2020





ADC Therapeutics


Health Care

Morgan Stanley

Swiss Phase 2 biotech developing next-gen antibody drug conjugates for difficult cancers.

Ebang International



AMTD Global

Makes equipment for cryptocurrency mining in China.

Skillful Craftsman


Consumer Discretionary


Provides online education and technology services in China.

B. Riley Merger II



B. Riley FBR

Second blank check company formed by diversified financial services firm B. Riley Financial.





Operates an e-commerce platform for appliances and home goods.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/23/20, the Renaissance IPO Index was down 4.7% year-to-date, while the S&P 500 was down 13.4%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was down 5.3% year-to-date, while the ACWX was down 21.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Be the first to comment

Leave a Reply

Your email address will not be published.