U.S. IPO Weekly Recap: Schrödinger Shines While The Market Sleeps On Casper In 7-IPO Week

Seven IPOs and one SPAC entered public market this past week. Life sciences software maker Schrödinger (NASDAQ:SDGR) rocketed in its debut and contract researcher PPD (NASDAQ:PPD) completed 2020’s second billion-dollar deal, while mattress unicorn Casper (NYSE:CSPR) disappointed. Record label giant Warner Music (WMGC.RC), a building products maker, and a biotech submitted initial filings.

Schrödinger priced above the range to raise $202 million at a $1.1 billion market cap and popped 68% on its first day. The company is unprofitable, but it has large and sticky customers and a broad drug pipeline with a mix of internal programs and collaborations. Schrödinger finished up 88%.

In the year’s biggest deal yet, PPD joined the Billion-Dollar IPO Club by pricing at the high end to raise $1.6 billion at a $9.4 billion market cap. The company operates in a crowded space with large competitors, but has established itself as a global CRO of choice with clients including the top 50 biopharmas worldwide. PPD finished up 15%.

After slashing its valuation by 34%, Casper Sleep priced at the low end to raise $100 million at a $487 million market cap, less than half of its last private valuation. Despite leading the highly competitive DTC mattress market, investor taste has continued to shift away from money-losing unicorns. It opened 21% above its IPO price, but finished the week down 8%.

Preclinical gene editing biotech Beam Therapeutics (NASDAQ:BEAM) upsized its offering by 69% and priced at the high end to raise $180 million at a $906 million market cap, making it one of the largest preclinical biotech IPOs ever. Despite its early stage and unproven approach, Beam finished up 21%, continuing a hot streak for biotechs.

Recreational boat roll-up OneWater Marine (ONEW) priced at the bottom of the lowered range to raise $55 million at a $166 million market cap. The company originally planned to raise $60 million at a $181 million market cap but postponed in October 2019. Bolstered by strong performances from its peers, OneWater finished up 26%.

Mortgage REIT NexPoint Real Estate Finance (NYSE:NREF) priced at the low end to raise $95 million at a $335 million market cap, and finished down 1%. Florida bank Professional Holding Corp. (OTCPK:PFHD) priced slightly below the range to raise $57 million at a $232 million market cap, and finished up 6%.

8 IPOs During the Week of February 3rd, 2020



Market Cap
at IPO

Price vs.

First Day

at 02/07







Provides a software platform for life sciences and materials research.

OneWater Marine






Recreational boat dealership that owns and operates 63 stores in the US.

Beam Therapeutics






Preclinical biotech developing therapies based on single-base gene editing.







LBO’d contract research organization that provides drug development services.

Professional Holding Corp.






Florida bank with nine locations across the Miami-Dade MSA.

InterPrivate Acquisition (IPV.U)






Blank check company backed by merchant bank InterPrivate and led by its founder Ahmed Fattouh.

NexPoint R.E. Finance






Newly formed mortgage REIT focused on single-family rental and multifamily loans.







Direct-to-consumer mattress and bedding brand.

Two companies filed for IPOs this past week. Taken private by Access Industries in 2011 for $3.3 billion, Warner Music Group filed to return to the public markets with an IPO we estimate could raise $750 million. Building products maker The AZEK Company (AZEK) filed for an estimated $500 million IPO, and preclinical rare disease biotech Passage Bio (PASG) filed to raise $125 million.

3 Filings During the Week of February 3rd, 2020









Manufactures composite residential and commercial building products.

Warner Music


Communication Services

Morgan Stanley

Leading music publisher and record label.

Passage Bio


Health Care

JP Morgan

Preclinical biotech developing gene therapies for rare CNS disorders.

In other IPO news, workplace app Asana reportedly submitted a confidential filing with the SEC for a direct listing rather than a traditional IPO. Asana would join the ranks of other non-traditional tech unicorns Slack (NYSE:WORK) and Spotify (NYSE:SPOT), both of which have experienced rocky trading.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/6/20, the Renaissance IPO Index was up 8.4% year-to-date, while the S&P 500 had a gain of 3.6%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify. The Renaissance International IPO Index was up 4.4% year-to-date, while the ACWX was down 0.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and SoftBank.

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

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