To The Moon

The February IPO market kicked off with two cancer-focused biotechs, joined by four SPACs. New filers trickled into the pipeline with one IPO and four SPACs submitting initial filings.

CAR-T biotech Arcellx(ACLX) priced at the low end to raise $124 million at a $583 million market cap. The company’s sole clinical-stage candidate, CART-ddBCMA, reported strong initial Phase 1 data in 19 evaluable relapsed or refractory multiple myeloma patients, delivering a 100% overall response rate. Arcellx currently plans to initiate a Phase 2 trial in late 2022, which it believes will be sufficient to submit a BLA. Arcellx finished up 12%.

Micro-cap Nuvectis Pharma(NVCT) priced at the low end of the downwardly revised range to raise $16 million at a $65 million market cap. Nuvectis is currently developing two in-licensed candidates. Its lead candidate began a Phase 1 trial for advanced solid tumors in December 2021, and the other candidate is in preclinical development. Nuvectis finished down 35%.

Four SPACs went public this past week led by energy-focused Kimbell Tiger Acquisition(TGR.U), which raised $200 million.

Trading in the IPO market continues to be volatile. New issuers delivered mixed performances during January, and the IPO Index capped off a red month with its best day since 2020, though the rise was short-lived.

One IPO submitted an initial filing: UK-based cannabis firm Akanda(AKAN) filed to raise $20 million.

Four SPACs submitted initial filings led by Seven Oaks Acquisition II(SVOBU), which filed to raise $250 million to target businesses with good ESG practices.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/3/2022, the Renaissance IPO Index was down 24.6% year-to-date, while the S&P 500 was down 6.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 11.4% year-to-date, while the ACWX was down 2.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.