IPO amidst the wall street blood bath (AVIR,LU,SQZ)

The markets are grappling with tech earnings from yesterday that were a mixed bag. Most of the big FAANG (Facebook, Apple, Amazon, Netflix, Google) companies had better than expected earnings but disappointed Wall Street on their forecasts.  Of course, also a drag on the market is the approaching presidential election with the uncertainty around that but primarily ever-growing numbers of new covid-19 infections.

Yesterday was the biggest single-day on record with 500,000 new infections across the globe and 90,000 of those in the United States. That said yesterday we did have very strong numbers from third-quarter GDP and a decrease in unemployment claims as well as the European Central Bank hinting they would give further support.   That said, it’s a Friday and almost anything can happen, so let’s get into the companies debuting today. 

IPO debuting today:

Atea Pharmaceuticals (AVIR)

Atea Is a clinical-stage biopharmaceutical company developing antiviral therapies.  They have a solid underwriting lineup, a license agreement with Roche, and several prominent pre-IPO investors including Bain Capital life sciences. Their lead product will initiate a phase 3 clinical trial in the first half of 2021 treating mild to moderate cases of covid-19.  There seems to be a lot of interest in this deal from investors focused specifically on this sector which is promising. This is demonstrated by them upsizing they’re offering from 11 million shares to 12.5 million shares and pricing at $24 which is the very top of their $22 to $24 range. I like this deal too and I’ll look for strength to get in.

Lufax Holding (LU)

Lufax runs a financial services platform in China Primarily focused on wealth management and Retail Lending.  The first thing of note is that Goldman Sachs is the lead underwriter on this deal which gives it credibility in my eyes even though it’s a Chinese company.  it will be important to keep in mind that their main competitor, Ant Financial will be debuting next week and are much larger in size.  However, this company’s relationship with the Ping An group is very beneficial as it’s a highly regarded entity and one of the largest financial institutions by revenue. While many Chinese IPOs have come and gone without Fanfare there has been good performance out of Chinese IPOs that are of great enough size and this would qualify with its deal over 2 billion dollars. They’re bringing 175 million shares to Market and look to the price at the top of their $11.50 to $13.50 range.

SQZ Biotechnologies (SQZ)

SQZ The clinical-stage biotech company working on Cell Therapy for patients with cancer and infectious diseases.  It appears this deal was covered at launch mostly by existing shareholders support. They do have a collaboration with Roche and their cell therapy platform is in Phase 1 trials. There seems to be push back on this deal because though they’re bringing a full 4.4 million shares to Market they’re being forced to price it at $16, which is the low end of their $16 – $18 range. That makes this one a wait and see for me.

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