Lemonade (LMND) : 1-month performance

Chinese Electric SUV maker Li Auto seeks up to $950 million in U.S. IPO

Li Auto Inc., a Chinese electric carmaker, is seeking as much as $950 million in a U.S. initial public offering.

The Beijing company, which develops, manufactures and sells smart SUVs, plans to sell 95 million shares at $8 to $10 apiece, it said in a filing with the U.S. Securities and Exchange Commission on Friday.

Li Auto would join other EV makers in tapping the U.S. capital market. Shares of Nio Inc., a Chinese rival, have close to doubled since it went public in 2018. Nikola Corp. went public this year through a reverse merger with a special purpose acquisition company, while Fisker Inc. is in talks to do the same.

China is the world’s largest market for EVs, but the competition is starting to squeeze out some companies. At least three have wound down their operations this year amid plummeting demand and a Tesla Inc. offensive that put Elon Musk’s company atop the sales charts.

In that climate, some Chinese startups view IPOs as a way to ensure survival. WM Motor Technology Co. is weighing an initial stock sale in Shanghai as soon as this year, people familiar with the matter said. Hozon New Energy Automobile Co., which is pushing into rural areas and lower-tier cities, said July 24 it wants to go public in Shanghai as soon as next year.

Li Auto, which makes SUVs that cost between $21,000 and $70,000, plans to launch a premium vehicle in 2022, it said in the filing. The company sold about 10,400 of its flagship model Li One as of the end of June.

It has yet to turn a profit. The carmaker, founded in 2015, reported a net loss of 77 million yuan ($11 million) in the three months ended March, about a fifth of the loss reported in the same period last year. It only started reporting revenue in 2019.

OnDeck Capital (ONDK) to be acquired by Enova International (ENVA) for $90 million

• Enova, the online lender for consumers and small businesses, is paying a 90% premium to OnDeck’s Monday’s closing stock price of $0.73 a share in the stock and cash deal. Combined the two companies had $4.7 billion in originations last year and have served more than 7 million customers.

 

** ONDK charts 2 months earlier 5/21/20 ** 

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IPOs this week : July 27 - 31, 20 (wk 31)

IPOs expected to price

• Vertex (VERX) is expected to price its IPO on July 28 and begin trading on July 29. The software provider is looking to raise $100M. 
• Annexon (NASDAQ:ANNX) is expected to price its IPO after setting an initial range of $14 to $16 for the 10M-share offering and 
• 1847 Goedeker is slated to price its IPO on July 30. 

IPO lockup expirations

• Annovis Bio (NYSEMKT:OTC:ANVS) and Blue Hat Interactive (NASDAQ:BHAT) on July 27, as well as 
• Black Diamond Therapeutics (NASDAQ:BDTX) and Anpac Bio-Medical Science (NASDAQ:ANPC) on July 28. 
• Reynolds Consumer Products (NASDAQ:REYN), 1Life Healthcare (NASDAQ:ONEM) and Arcutis Biotherapeutics (NASDAQ:ARQT) on July 29.

U.S. rare earths miner MP Materials to go public in $1.47 billion deal

 (Reuters) - U.S. rare earths miner MP Materials will go public in a $1.47 billion deal by merging with a private-equity backed blank-check company, underscoring Wall Street’s rising interest in efforts to boost production of the strategic minerals.

The listing on the New York Stock Exchange would be the first for a U.S. rare earths company since Molycorp went public a decade ago. Molycorp filed for bankruptcy in 2015 and MP Materials bought California’s Mountain Pass mine and other Molycorp assets in 2017.

The deal, announced on Wednesday, comes as President Donald Trump pushes to resume domestic production and processing of rare earths, a group of 17 minerals used to build weapons and electronics. China is the world’s largest producer of these minerals and has threatened to stop their export to the United States.

Reviving domestic rare earths production has become a priority in Washington as relations with China have become increasingly frayed and U.S. lawmakers warn of the dangers of relying on a competitor for critical defense components.

Hedge funds JHL Capital Group and QVT Financial will fold their ownership of MP into the special-purpose acquisition company (SPAC) Fortress Value Acquisition Corp FVAC_u.N, shares of which gained 9.7% on Wednesday. Fortress is controlled by Japan's SoftBank Group Corp 9984.T.

SPACs have been behind some recent high-profile public listings, including electric car maker Fisker, which announced its plans earlier this week.

MP will net about $489 million from the deal and a separate stock offering for several private investors, including venture capitalist Chamath Palihapitiya and the hedge fund Slate Path Capital, which is a major shareholder in Barrick Gold Corp ABX.TO, the world's second-largest gold producer.

MP plans to use the funds to upgrade outdated and mothballed Molycorp-era processing equipment in California.

MP had planned to process 5,000 tonnes per year of the two most common rare earth metals by the end of 2020, though the goal is now by 2022, the company said on Wednesday.

MP is by far the most advanced player in the U.S. rare earths industry, given no rival project has even broken ground. But the company has to ship more than 50,000 tonnes of concentrated rare earths per year to China for final processing because its California equipment is not operational. Chinese customers account for all of MP’s $100 million in annual revenue.

Jim Litinsky, MP’s co-chairman, will become chief executive of the new company, which will trade under the stock ticker “MP.” Retired U.S. General Richard Myers, who chaired the Joint Chiefs of Staff during the George W. Bush presidency, will join the company’s board.

It was not immediately clear if China's Shenghe Resources Holding Co Ltd 600392.SS, which owns 9.9% of MP, would participate in the Fortress deal, though the conversion likely will give Shenghe an equity holding in the newly formed public company. Shenghe did not respond to a request for comment. MP declined to comment.

Reuters reported earlier this year that Shenghe’s stake in MP had prompted concern from scientists at the U.S. Department of Energy’s Critical Materials Institute, the focal point of the U.S. government’s rare earths research and a facility that typically works closely with private industry.

The U.S. Department of Defense awarded funding in late April to MP for a facility to process heavy rare earths, a less-common type of the specialized minerals.

Equillium (EQ) : Positive Covid-19 results

Equillium (EQ) announced that a clinical trial conducted in India by its partner Biocon demonstrated that itolizumab significantly reduced mortality in patients hospitalized with COVID-19.

 

Equillium reports data for Itolizumab demonstration reduction in mortality in patients hospitalized with COVID-19

Co announced that as reported by its partner, Biocon Limited, a clinical trial conducted in India by Biocon demonstrated that itolizumab significantly reduced mortality in patients hospitalized with COVID-19. Biocon has announced that the Drugs Controller General of India (DCGI), the regulatory agency that oversees drug approvals, has granted restricted emergency use of itolizumab for the treatment of cytokine release syndrome (CRS) in COVID-19 patients with moderate to severe acute respiratory distress syndrome (ARDS) in India. Based on the encouraging topline results of the study reported by Biocon and subsequent DCGI approval to treat COVID-19 patients, Equillium is planning to conduct a global randomized controlled clinical trial of itolizumab in COVID-19 patients for which it will file a U.S. investigational new drug application (IND).

Biocon conducted a randomized, controlled, open-label study at four hospitals in India, enrolling a total of 30 hospitalized COVID-19 patients with moderate to severe ARDS. Twenty patients were randomized to receive itolizumab plus best supportive care, while 10 patients received best supportive care alone. The primary endpoint was mortality at one month. As reported by Biocon:

• In the itolizumab arm there were no deaths and all patients have recovered; in the control arm three patients died and the remainder have recovered.
• The mortality benefit observed in the itolizumab arm was statistically significant.
• Consistent with the observed clinical improvement, patients who received itolizumab also experienced significant reductions in inflammatory cytokines such as IL-6 and TNFa.

Conatus Pharma (CNAT) became Histogen (HSTO) via reverse merger

• Jan 2020: After its Novartis-partnered nonalcoholic steatohepatitis (NASH) drug failed a third midphase trial, Conatus Pharma (CNAT) unveiled a plan to lay off 40% of its staffers. Then the company has found its lifeline—a reverse merger with regenerative medicine player Histogen (HSTO). 

   

Fisker car is going public via merger

Spartan Energy (SPAQ), a blank check company backed by private equity firm Apollo Global Management (APO), announced a deal for the Fisker car company, which makes electric vehicles.

Fisker plans to go public via a merger with Spartan Energy in a deal valuing the electric vehicle startup at $2.9 billion, the companies said Monday. In addition, the companies expect to close the deal in Q4 this year. Reuters first reported talks between the companies Thursday.

Meanwhile, the proposed deal provides funding needed for the first Fisker car, the Ocean luxury electric SUV, to reach the market in 2022.

Henrik Fisker launched the eponymous company in 2016 after an earlier automotive venture went bankrupt, costing taxpayers $139 million.

The now-defunct business produced a luxury plug-in hybrid electric Fisker car. But the company discontinued the car, called Karma, due to poor sales.

Soon-To-Be Fisker Car Stock
Shares of Spartan Energy reversed sharply lower to close down 9.8% at 15.06 on the stock market today after surging more than 17% earlier. Tesla (TSLA) also caused whiplash and fell 3.1% after jumping 11% earlier on reports it's dropping the price of its Model Y crossover Sunday. Tesla also canceled a low-end version of its newest electric vehicle Monday.

The Fisker car company is coming public in a hot market for electric cars. Nikola (NKLA) first attracted attention in June by going public through a sale to a blank check company, or special purpose acquisition company (SPAC).

Nikola's successful business model was quickly adopted by Hyliion, which agreed to merge with Tortoise Acquisition (SHLL). They will create a new company called Hyliion Holdings. And it will trade under the ticker "HYLN."

Blank check companies have been snapping up startups making electric cars as investors hunt for the next Tesla.

A SPAC or blank check company is a shell entity with no commercial operations, formed expressly to raise capital for buying an existing business. Investors bid up SPAC shares hoping to unlock value when the two companies merge.

IPOs this week : July 13 - 10, 20 (wk 28)

IPOs expected to price

• Financial software provider NCino (NCNO) on July 13. The fast-growing company is looking to raise $175M. 
• GoHealth (GOCO), Relay Therapeutics (RLAY) and Trean Insurance Group (TIG) could also go public this week. 

IPO lockup expirations

• Immunovant (NASDAQ:IMVT) on July 13, 
• Phoenix Tree Holdings Limited (NYSE:DNK), Velocity Financial (NYSE:VEL) and Lizhi (NASDAQ:LIZI) on July 15 and 
• DouYu (NASDAQ:DOYU) on July 16. 

IPO quiet period expirations

• There are quiet expirations on Royalty Pharma (NASDAQ:RPRX), VerifyMe (NASDAQ:VRME), Repare Therapeutics (NASDAQ:RPTX) and Progenity (NASDAQ:PROG). 

The list of companies set to start trading in Hong Kong next week includes Archosaur Games, China Bohai Bank, Shandong Fengxiang and Cathay Media & Education Group.

China Rapid Finance (NYSE: XRF) changes ticker symbol to SOS

 SHANGHAI, July 10, 2020 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF) (the "Company") today announced that the Company's ticker symbol on the New York Stock Exchange will change from "XRF" to "SOS," effective at the start of trading on July 20, 2020.

Mr. Yandai Wang, CEO of the Company, said, "We are excited to be able to align our NYSE ticker symbol with the 'SOS' brand in recognition of our ongoing transition out of the fin-tech business and into the emergency rescue services business. This change will provide for better alignment between the core business operations of the company and its stock symbol which we believe will lead to better investor understanding. It also makes it clearer what the business focus and its primary source of earnings will be going forward."

About China Rapid Finance Limited

China Rapid Finance Limited (NYSE: XRF) is a holding company operating primarily in the emergency rescue services business. The Company provides a wide range of emergency rescue services to its corporate and individual members in China through its operating subsidiary, SOS Information Technology Co., Ltd. ("SOS"). SOS also provides various types of membership cards to individual members in large corporations as part of employee benefits. Its products include SOS Medical Rescue Card, SOS Auto Rescue Card, SOS Financial Rescue Card, and SOS Life Rescue Card. SOS utilizes cloud and other cutting-edge technologies to provide emergency rescue services in a new fashion, including its app based mobile platform, cloud call centers and large data centers. SOS has contractual service agreements with major banks, insurance companies, internet companies, and telecom providers in China.  

IPOs this week : July 6 - 10, 20 (wk 27)

IPOs expected to price

• Postmates (POSTM) could file for an initial public offering next week if the company decides market conditions are right. 

IPO quiet period expirations

• Vroom (NASDAQ:VRM) on July 6. Vroom closed on Friday at about 149% above where its IPO was priced, which could limit the price targets from analysts. 
• AZEK (NYSE:AZEK), Generation Bio (NASDAQ:GBIO), Avidity Bio (NASDAQ:RNA), Vaxcyte (NASDAQ:PCVX) and Burning Rock (NASDAQ:BNR) on July 7.

Inari Medical (NARI) began trading on the Nasdaq on 22 May 2020

Inari Medical, Inc. builds minimally invasive, novel, and catheter-based mechanical thrombectomy systems for the specific disease states in the United States. 

 

• Sector(s): Healthcare
• Industry: Medical Devices
• Full Time Employees: 1,100
• Founded in 2011 
• HQ: Irvine, California
• https://www.inarimedical.com

Lemonade (LMND) began trading on the NYSE on Thur 2 July 20

• Lemonade Inc. snagged 2020’s strongest initial public offering debut of a U.S. company as shares of the mobile-based insurance startup became the latest to more than double on their first day of trading. 

Lemonade (LMND) shares, which skyrocketed as much as 144% to hit an intraday high of $70.80, finished up 139% at $69.41 on Thursday, following an IPO pricing of $29 a share late Wednesday. That pricing was above an already increased IPO pricing to range of $26 to $28 a share, which topped a previous range of $23 to $26 apiece.

That’s the best debut for a U.S.-based company since shares of Inari Medical Inc. (NARI) closed at $42.51 on May 22, above its pricing of $19 for a 124% gain. American Depositary Receipts of Shanghai-based video-interaction company Agora Inc. did slightly better than Lemonade, jumping 152% on their first day to close at $50.50.


Most recently, shares of online used-car seller Vroom Inc. (VRM) closed at $47.90 on June 9 a day after pricing its IPO at $22, for a 117% gain, and ZoomInfo Technologies Inc. (ZI) shares closed at $34 on June 4, its first day of trading, after hitting an intraday high of $42 after pricing at $21.

Lemonade sold 11 million shares, with up to 1.7 million available to underwriters to cover overallotments. Taking into account those additional shares, Thursday’s close values the company at $3.93 billion.

Before the IPO, the company had already raised $480 million through several funding rounds, according to Crunchbase, with a $300 million round in April 2019 led by SoftBank Group Corp. 9984, +2.62% bestowing a “pre-money” valuation of $1.7 billion.

Dun & Bradstreet (DNB) began trading on the NYSE on Wed 1 July 20

Dun & Bradstreet Holdings, Inc. provides business decisioning data and analytics in North America and internationally.   Dun & Bradstreet Holdings, Inc. is a subsidiary of Star Parent L.P.

• Sector: Technology
• Industry: Information Technology Services
• Full Time Employees: 4,037
• Founded in 1841 
• HQ in Short Hills, New Jersey
• http://www.dnb.com

Dun & Bradstreet priced upsized 78.3 mln share IPO at $22, above the $19-$21 expected price range

• The IPO was originally expected to consist of 65.75 mln shares.
• The lead underwriters on the IPO were Goldman Sachs, BofA Securities, JP Morgan, and Barclays.

Lemonade prices IPO at $29 a share, higher than raised range

Lemonade Inc. (LMND), a mobile-based insurance start-up that seeks to court millennials, priced its initial public offering above the expected range Wednesday. 

After the close Wednesday, Lemonade priced 11 million shares at $29 apiece, above the already increased range of $26 to $28 from earlier in the day.

Underwriters have another 1.7 million shares to cover overallotments over the next 30 days. The stock is expected to begin trading under the ticker "LMND" on the New York Stock Exchange on Thursday.

The IPO price values the company at $1.64 billion should all options be exercised, just shy of the $1.7 billion valuation calculated from a $300 million investment led by SoftBank Group Corp. 9984, 2.29% in April 2019.