U.S. IPO Weekly Recap: Time For Semiconductors As SiTime Pops 44% In 3-IPO Week

Three companies entered the public market, including the first two semiconductor IPOs in two years, and all priced at the low end in another week marked by mark-downs. They were joined by five SPACs, the most SPACs in a week, ever. Chinese debt collector YX Asset Recovery (YXR) postponed then withdrew its $81 million US IPO, the first of the 4Q19’s China wave to do so. Two Chinese issuers and one SPAC submitted initial filings.

MegaChips spin-off SiTime (NASDAQ:SITM), a fabless producer of silicon timing systems, raised $56 million at a $186 million market cap. Despite lumpy growth, SiTime was able to pique investor interest with its large share of the nascent silicon-based oscillator market, used in connected devices. After popping 44% in its debut, the company traded off slightly, finishing up 39%.

In the first pure-play public equity targeting Bitcoin, Canaan (NASDAQ:CAN) raised $90 million at a $1.4 billion market value. It’s the world’s second largest producer of Bitcoin mining equipment with a 23% share, but its heavy exposure to Bitcoin and consequently volatile revenue and margins left investors wary. After dropping as much as 17% intraday on Friday, Canaan finished flat.

Retail and office REIT Alpine Income Property Trust (NYSE:PINE) raised $143 million at a $173 million market cap. Carved out of Consolidated-Tomoka (NYSE: CTO), Alpine Income offered a 4.2% yield, but the small and concentrated REIT garnered little interest from investors, finishing flat.

Targeting the healthcare industry, Concord Health Partners’ CHP Merger Corp. (CHPMU) raised $250 million and Avego and Metalmark Capital’s Amplitude Healthcare Acquisition (NASDAQ:AMHCU) raised $100 million. Hennessy Capital’s real estate tech SPAC PropTech Acquisition (PTACU) raised $150 million, and former Ooyala officers’ software SPAC Software Acquisition Group (NASDAQ:SAQNU) raised $130 million. Led by a team from Shanghai, GreenVision Acquisition (GRNV) raised $50 million to acquire a healthcare business outside of China.

8 IPOs During the Week of November 18th, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 11/22

SiTime

$56M

$186M

-7%

+43%

+39%

Fabless producer of silicon timing systems being spun out of MegaChips.

PropTech Acquisition

$150M

$188M

0%

+1%

+1%

Blank check company led by partners at Hennessy Capital targeting a real estate technology business.

Software Acquisition

$130M

$161M

0%

+1%

+1%

Blank check company led by former Ooyala officers targeting a software company.

GreenVision Acquisition

$50M

$63M

0%

+0%

+1%

Blank check company led by Shanghai dealmakers targeting healthcare firms outside of China.

CHP Merger Corp.

$275M

$338M

0%

+1%

+1%

Blank check company led by a team from Concord Health Partners targeting the healthcare industry.

Alpine REIT

$143M

$173M

-5%

+0%

+0%

Single-tenant commercial net lease REIT formed by Consolidated-Tomoka.

Amplitude Healthcare Acq.

$100M

$125M

0%

+0%

+0%

Blank check company formed by Avego and Metalmark Capital targeting healthcare in the US or Europe.

Canaan

$90M

$1,423M

-10%

+0%

+0%

Fabless designer of Bitcoin mining equipment.

Two Chinese issuers filed for US IPOs. Cancer diagnostics provider Genetron Holdings (GTH) filed to raise $100 million, and Zhongchao (ZCMD), which provides online medical information, filed to raise $15 million.

Mexico-focused SPAC LIV Capital Acquisition (LIVKU), led by Mexican private equity firm LIV Capital, plans to raise $60 million.

3 Filings During the Week of November 18th, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Genetron Holdings

$100M

Health Care

Credit Suisse

Provides molecular profiling and diagnostics for cancer patients in China.

Zhongchao

$15M

Technology

Network 1

Chinese internet platform providing medical information, education, and training.

LIV Capital Acquisition

$60M

SPAC

EarlyBird

Blank check company led by a team from LIV Capital targeting Mexico.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/21/19, the Renaissance IPO Index was up 30.5% year-to-date, while the S&P 500 had a gain of 23.8%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Roku (NASDAQ:ROKU). The Renaissance International IPO Index was up 17.9% year-to-date, while the ACWX was up 16.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.

Original Post

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

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