Episode 12: Biotech IPOs continue as investors get bullish
Hi Friends. I hope you had a great memorial day weekend. I want to thank our special guest on Friday, Michaela Lalanne for an awesome interview on the real estate market. There were some amazing nuggets from our discussion. If you missed it you can always catch it on Pandocap.co.
The market is rallying today with the Dow crossing 25,000 and the S&P over 3000 which has the president and investors bullish around the reopening of our economy. We also saw the New York Stock Exchange reopen their trading floor with Governor Como ringing the bell to mark the opening. Although the administration and investors are excited, companies are still taking precautions on the road back to an aggressive reopening. You have companies trying to comply with safety regulations and some completely throwing in the towel like Hertz who filed for bankruptcy. Also there is some talk on another stimulus package coming out which would be the 5th relief package.
SpaceX is scheduled to launch tomorrow testing the future of passenger travel So far NASA has committed $135 million to help develop the portion that could serve as a lunar lander. As more people champion commercial space programs, I am hoping to secure my spot as a bucket list item. See you on Mars!
Moving on to how the markets closed.
Dow up 529 points increase of 2%
S&P up 36 points
Nasdaq up 15 points
IPOs
Burning Rock Biotech, a Chinese developer of DNA sequencing tech for oncology, filed for a $100 million IPO. It plans to trade on the Nasdaq (BNR). There has been controversy coming across whether there should be stricter guidelines on listings coming in from China or even allowed at all. This is following the events that happened with Luckin Coffee who had several charges of fraud.
Pliant Therapeutics, a South San Francisco-based developer of fibrosis treatments, set IPO terms to 6 million shares at $14-$16. It would have an initial market cap of $469 million, were it to price in the middle, and plans to trade on the Nasdaq (PLRX)
Vaxcyte, a Foster City, Calif.-based developer of pneumococcal vaccines, filed for a $100 million IPO. The pre-revenue company plans to list on the Nasdaq (PCVX)
Warner Music Group, a music recording and publishing company offering 70 million shares at $23-$25. Will be listing on Nasdaq under ticker (WMG).
Final thoughts
So are we starting a new bull market after we reached market lows in March? The IPO index is now at 16.6% compared to a -6.5% S&P 500 and we are seeing more companies file for IPOs this summer. I do think there is opportunity coming out of the pandemic and I encourage you to to find solutions because they will be the leaders in the next wave of innovation. I will be launching one of those innovators on Pandocap June 1st and share more throughout the week. I will see you on Friday for our next market recap. Have a great week.
Pensamientos finales
Entonces, ¿estamos comenzando un nuevo mercado alcista después de alcanzar los mínimos del mercado en marzo? El índice IPO ahora está en 16.6% en comparación con un -6.5% S&P 500 y estamos viendo que más compañías solicitan IPO este verano. Creo que hay una oportunidad para salir de la pandemia y le animo a que encuentre soluciones porque serán los líderes en la próxima ola de innovación. Lanzaré uno de esos innovadores en Pandocap el 1 de junio y compartiré más durante la semana. Te veré el viernes para nuestra próxima recapitulación del mercado. Que tengas una buena semana.