lRMSûAREûSCOURINGûTHEIRûPORTFOLIOSûFORûREALISATIONû
opportunities in names whose stock prices have
proved relatively immune to the stock market
downturn.
TWIST BIOSCIENCES TAKES DISCOUNT
ON US$70m IPO
Existing shareholders of TWIST BIOSCIENCES
were forced to increase their investment in
the synthetic DNA specialist’s IPO amid
lacklustre investor demand.
JP Morgan and Cowen priced 5m shares at
US$14.00, the bottom of a US$14–$16
marketing range and a huge discount to the
US$21.24 per share valuation on the
company’s most recent private round.
4WISTûCLOSEDûlRST
DAYûTRADINGûONû4UESDAYû
mAT
TO
OFFERûATû53
4HEûOUTCOMEûREmECTEDûCLUB
LIKEû
allocations to existing shareholders and
private-round investors.
Existing shareholders invested US$31.3m
of the US$70m raised, an increase from the
up to US$30m they had initially committed.
That excludes any participation from late-
stage private investors such as Cormorant
Asset Management, Fidelity Investments
and Foresite Capital, among others, that had
invested US$291.5m in the Series D round at
a US$21.24 per share valuation.
Twist, which makes synthetic DNA that is
used in a variety of industrial, consumer,
agricultural and other applications, was
valued at US$375m on the IPO.
While there is tremendous potential for
synthetic DNA, Twist is spending heavily to
develop new applications.
In the nine months ended June 30, the
company reported an operating loss of
US$50.9m on revenue of US$17m. It expects
to lose between US$19.5m and $20.9m on
REVENUEûOFû53nMûINûTHEûlSCALûFOURTHû
quarter ended September 30.
CLEMENTIA GROWS EQUITY RAISE TO
US$70m
CLEMENTIA PHARMACEUTICALS raised US$70m in
an overnight stock sale on Monday, though
THEûCOMPANYûCONlDENTIALLYûMARKETEDûTOûAû
handful of investors earlier in the day.
Morgan Stanley and Leerink Partners were
oversubscribed from the wall-cross with
incremental marketing allowing them to
place 5.6m shares at US$13.25, the lower-
half of a US$13.10–$13.80 marketing range.
Clementia shares closed on Tuesday at
US$13.00 but traded on Friday at US$14.74.
The company has been in high demand since
disclosing it plans to seek early FDA approval for
its treatment of a rare bone disease.
Clementia plans to use the proceeds to
support the new drug application early next
year. The company received positive
feedback on the drug in Phase II trials it
completed in September.AXONICS STUMBLES IN MARKET DEBUTSurgical implant maker AXONICS MODULATION
TECHNOLOGIES maximized proceeds from an
upsized US$120m IPO but lost momentum
in aftermarket trading.
!XONICSûCLOSEDûITSûlRSTûDAYûOFûTRADINGû
below issue at US$14.98 on Wednesday after
a trading high of US$17.00 during the
session.
The outcome was particularly
disappointing after Bank of America Merrill
Lynch and Morgan Stanley priced 8m shares at
US$15.00, midpoint to the US$14–$16 range
and up from 6m shares at launch.
The deal was also accelerated by one day.
!XONICSûBENElTEDûFROMûCOMPARISONSûTOû
spinal implant maker SI-BONE, which surged
on debut earlier this month and is still
trading 26% above its US$15 offer price.
Axonics’ product is already approved in
Europe, Canada, and Australia for patients
with urinary incontinence, and it expects to
submit an application for approval in the US
in Q1 2019.
Both the opportunity and competition are
WELLûDElNED
MEDTRONIC’s InterStim II device has been
the standard treatment for more than two
decades. The UK medtech giant cited strong
sales of InterStim implants in the US for
growth of its pelvic health lines of business.Axonics plans to use the IPO funding to build
out a speciality salesforce of 60 representatives
in an effort to win market share. The
company’s sales pitch is a device whose
rechargeable battery lasts 15 years, versus just
four years for Medtronic’s InterStim II.
Axonics believes that longer life could
generate up to US$12bn of healthcare
savings over the next 12 years.KKR DE-RISKS GARDNER DENVER
SELL-DOWNThe tail end of quarterly earnings usually
spawns sponsor sell-downs, though market
conditions are casting considerable doubt as
to how many will emerge in this window.
Up to the challenge, KKR & Co began the
year-end selling season on Wednesday
evening with a circa US$500m cash-out of
GARDNER DENVER, the industrial equipment
maker it took public in May last year.
The price realised was, not surprisingly,
accommodative to buyers.
Goldman Sachs, acting as sole bookrunner,
OFmOADEDûITSûPURCHASEûOFûMû'ARDNERû$ENVERû
shares, or 13.5-days’ trading volume and 10%
of outstanding, overnight on Wednesday at
US$25.75, the lower half of a US$25.60–$26.00
range and a 4.8% discount to last sale.
Gardner Denver shares closed Thursday
trading at US$25.80.
Goldman purchased the block at US$25.66
in a negotiated process, as opposed to a
competitive auction, according to securities
lLINGSûANDûBANKERSû3UCHûNEGOTIATEDû
purchases are becoming a more commonplace
way to mitigate risks of leakage into the
market ahead of the public launch.
Goldman now stands second in the US
common stock ECM league tables with
US$17.6bn of bookrun business,
leapfrogging JP Morgan (US$17.2bn) and
trailing only Morgan Stanley (US$20.1bn).
With IPOs likely to be thin on the ground
through year-end, blocks may be the only
way to close the gap.
Notably, it has been more than a month
since the last sponsor sell-down in US ECM, a
US$68.1m sale of Veritiv shares executed byEQUITIES AMERICASECM DEALS: WEEK ENDING 2/11/2018
Stock Country Date Amount Price Deal type Bookrunner(s)
Clementia Pharmaceuticals Canada 29/10/2018 US$70.2m US$13.25 Accelerated bookbuild (primary) Morgan Stanley, Leerink Partners
Bureau Veritas France 29/10/2018 €400m €19.12 Accelerated bookbuild (secondary) Goldman Sachs
Coal India India 30/10/2018 Rs59bn Rs266 Follow-on (secondary) Axis, ICICI Securities, JM Financial, Kotak, SBI Capital
Biopharma Credit UK 31/10/2018 US$305m US$1.025 Placing (primary) JP Morgan, Goldman Sachs, Canaccord Genuity
Merian Chrysalis Invt Company UK 01/11/2018 £100m £1 IPO (primary) Liberum, Zeus Capital
Orchard Rx UK 30/10/2018 US$200m US$14.00 IPO (primary) JP Morgan, Goldman Sachs, Cowen
Axonics Modulation Technologies US 30/10/2018 US$120m US$15.00 IPO (primary) BAML, Morgan Stanley, Wells Fargo,
SunTrust Robinson Humphrey
Gardner Denver US 31/10/2018 US$515m US$25.75 Block (secondary) Goldman Sachs
New Residential Investments US 31/10/2018 US$433m US$17.32 Block (primary) Credit Suisse, Barclays, Goldman Sachs, BTIG, UBS
Twist Bioscience US 30/10/2018 US$70m US$14.00 IPO (primary) JP Morgan, Cowen