How To Tap The Booming IPO Market With ETFs

The U.S. IPO market is red hot with some of the largest and most highly anticipated new listings hitting the market this week.

Royalty Pharma Plc, a buyer of biopharmaceutical royalties, has raised $2.2 billion by selling 77.7 million shares at a price of $28 per share, the top end of its price range. This represents the biggest IPO of this year so far. These shares will start trading later today on Nasdaq, under the ticker symbol "RPRX." The deal overtakes the recent IPO of Warner Music Group Corp. that raised $1.9 billion.

Royalty Pharma generated $500.9 million in revenues in the first quarter, up 15% from a year ago. Per Renaissance Capital, “Royalty Pharma is highly profitable and generates strong cash flow. It intends to pay a dividend with 2.3% yield at the midpoint.”

Other deals this week are from the biotech and healthcare sectors. Oncology biotech Forma Therapeutics Holdings Inc. is planning to offer 11.8 million shares priced at $16-$18 each to raise up to $212 million. The stock is expected to list on the Nasdaq under the ticker symbol “FMTX.” The company recorded a net loss of $34.8 million on revenues of $100.6 million in 2019 while reported net income of $5.3 million and revenues of $164.1 million in 2018.

Another oncology biotech Repare Therapeutics Inc. plans to raise $133.2 million by offering 7.4 million shares at price of $16-$18 each. The company will list on Nasdaq under the ticker symbol “RPTX.” The company had a loss of $12.6 million in the first quarter, wider than the loss of $4.8 million posted in the year-ago period. Biotech Progenity Inc. will likely list on the Nasdaq under the ticker symbol “PROG.” It plans to offer 6.7 million shares at $14-$16 each, raising up to $107.2 million.

Additionally, the Chinese cancer diagnostics provider Genetron Holdings Ltd is planning to offer 13 million American Depositary shares in the IPO, which is expected to be priced between $11.50 and $13.50 a share, to raise up to $175.5 million. The stock is expected to be listed on the Nasdaq under the ticker symbol “GTH.”

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.