they priced 9m shares at US$14.25 for a
US$128m deal size and taking the all-in
discount to 25% from Monday’s closing
price.
4HEûBANKSûSOLIDIlEDûTHATûDEMANDûBYû
placing 70% of the deal with the top 10
accounts and 90% to the top 25.
Orchard’s stock price levelled off in
Thursday’s aftermarket. Only 2.5m shares
traded as Orchard closed the session at
US$14.55, with a US$14.30 VWAP.
The stock is still trading above the US$14
offer from Orchard’s club IPO in October.
Orchard used the proceeds from its IPO to
develop a portfolio of gene therapy assets
that it acquired from GSK last April in return
for £10m in cash and a 19.9% equity stake.
The proceeds raised on Wednesday will be
used to fund a new portfolio of gene
therapies.
BIOTECH IPO BACKLOG EXPANDSA total of 13 biotech IPOs are expected to
price in June, raising nearly US$2.0bn of
proceeds.
INHIBRX was the latest addition to the
backlog with a US$75m IPO, with Evercore
and Barclays as the joint bookrunners.
The company has partnered with Celgene
and Italian biotech Chiesi Farmaceutici to
develop drugs called single domain
antibodies.
InhibRx licensed rights to one of its drugs
to Celgene, and Chiesi has an option to
develop a second drug outside the US and
Canada.
Chiesi is also putting US$10m into
InhibRx in a concurrent private placement.
There is no indication of insider
participation on the cover of the prospectus.
InhibRx is using the proceeds from its IPO
and concurrent private placement to bring
three of its own drugs into the clinic.
The company had only US$6m of cash as
of March 31. Its lack of cash has raised doubt
about InhibRx’s ability to continue as a
“going concern”.
KARUNA THERAPEUTICS was a late addition to
the biotech IPO backlog last Friday with a
53MûlLING
Although Karuna ranks among the
smaller biotech IPOs in active registration,
its cash needs were mitigated through a pre-
IPO private placement.
4HEûCOMPANYûlLEDûCONlDENTIALLYûONû
March 29, just after it closed an US$82m
crossover round.
Arch Venture Partners, Fidelity
-ANAGEMENTûû2ESEARCHûANDû3OlNNOVAû
Venture Partners led the crossover round as
new investors.
Karuna was founded in 2009 by PureTech
Health, an LSE-traded biotech incubator
with US$588m of market capitalisation.
Karuna expects to complete an ongoing
Phase II trial for the treatment of psychosis
in patients with schizophrenia this year.
Proceeds from its IPO are enough to
complete the ongoing trial and a future
Phase III study in schizophrenia psychosis.
Goldman Sachs, Citigroup and Wells Fargo are
the joint bookrunners.EX-PETS.COM CEO RETURNS WITH
THE REALREALTHE REALREAL, an online marketplace for
SECOND
HANDûLUXURYûGOODS ûlLEDûFORûAû.ASDAQû
IPO on May 31 that could launch as early as
this month.
The RealReal is the latest fashion-related
IPO to emerge in the past year and will
follow the past week’s IPO of online
designer fashion retailer Revolve.
Credit Suisse, Bank of America Merrill Lynch
and UBS will lead the underwriting
syndicate, with the deal potentially
launching as early as June 17.
The IPO, notionally sized at US$100m but
SUBJECTûTOûCHANGE ûWASûlRSTûlLEDû
CONlDENTIALLYûINûEARLYû!PRIL
Founded in 2011 by the former CEO of
Pets.com, Julie Wainwright, the company
REPORTEDûAûlRST
QUARTERûNETûLOSSûOFû53Mû
on sales of US$69.3m, up 49% from a year
earlier.
The company generates revenue from
orders processed through its website,
mobile app and three retail stores in New
York and Los Angeles.
Whether or not the IPO goes ahead, The
RealReal will not be short of cash in the near
term.
The company’s balance sheet includes
more than US$100m of cash and short-term
investments after it raised US$47m in a
3ERIESû(ûlNANCINGûROUNDûINû-ARCH
Backers include a string of sponsors,
among them Great Hill Partners, Canaan,
PWP Growth Equity and InterWest Partners.SOUTH MOUNTAIN MANDATES CITIGROUP
ON SPACSOUTH MOUNTAIN MERGER ûAûlNTECH
FOCUSEDû
30!# ûlLEDûDOCUMENTSûLASTûWEEKûFORûAû
US$200m IPO, which would mark a return
for SPAC veteran Charles Bernicker.
Not only a return for Bernicker, the
former CFO of CardConnect that was
acquired by SPAC FinTech Acquisition I
before being sold to First Data, but a return
of sorts for Citigroup.
Citigroup, sole bookrunner on the
offering, has yet to underwrite a SPAC so far
this year, after ranking second in the 2018
full-year US SPAC IPO league tables with
US$1.3bn of apportioned credit, according
TOû2ElNITIVûDATACantor Fitzgerald, the top SPAC
underwriter in 2018 and second in the 2019
year-to-date tables, handled the Fintech
Acquisition I acquisition, so the mandate is
something of a coup for Citigroup.
South Mountain is typically structured
WITHûMûUNITSûTOûBEûSOLDûATûAûlXED û
US$10.00 offer price comprised of one share
common stock and one-half warrant
exercisable at US$11.50. It will have a 24-
month investment horizon.
BlueCrest Capital Management, a
'UERNSEY
DOMICILEDûHEDGEûFUNDûAFlLIATEDû
with South Mountain sponsor Harbour
Reach, has agreed to invest 2m of the 20m
units being sold on the IPO.
South Mountain management intends to
FOCUSûITSûSEARCHûONûlNANCIALûTECHNOLOGY û
SPECIlCALLYûINûAREASûTHATûhWILLûBENElTûFROMû
the rapidly evolving payment ecosystem”.
After seeing Fintech Acquisition I through
to the acquisition of CardConnect, Bernicker
stayed on as CFO through the sale to First
Data in 2017 for US$15.00 a share (above the
US$10 SPAC IPO print).
He also consulted on FinTech Acquisition
II’s acquisition last year of International
Money Express, which currently trades at
US$13.60.PERSONALIS TESTS IPO MARKETCancer genomics company PERSONALIS
launched an up to US$107m IPO early on
Friday that will help fund the
commercialisation of its ImmunoID NeXT
cancer screen.
Morgan Stanley, Bank of America Merrill Lynch
and Cowen are marketing 6.67m shares at
US$14–$16 each for pricing on June 19.
By analysing more than 20,000 genes
from DNA and RNA the ImmunoID NeXT
platform provides detailed analysis of both a
tumour and its microenvironment from a
single sample.
Personalis launched ImmunID NeXT in
November and generated US$14.1m of revenues
in Q1 2019, versus US$4.2m in Q1 2018.
Customers include more than 45
biotechnolgy companies that use Personalis
products in the development of new cancer
drugs and to measure patient responses to
treatment.
In addition to funding the ongoing launch
of ImmunoID NeXT, Personalis is developing
a complementary liquid biopsy, a blood test
for cancer.
Personalis had US$33m of cash as of
March 31 after raising US$90m as a private
company. It also received US$20m from a
growth capital loan in March.
The company’s top shareholders are VCs
Lightspeed Venture Partners (28%),
Abingworth Bioventures (25%) and Mohr
Davidow Ventures(12%).