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fenwick & west Key Metrics for Technology and Life Sciences Initial Public Offerings 2018 Full Year

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Page 1: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

fenwick & west

Key Metrics for Technology and Life Sciences

Initial Public Offerings2018 Full Year

Page 2: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

Key Metrics for Technology and Life Sciences Initial Public Offerings2018 Full Year

Survey Contents

Survey Results ....................................................................................................................2

Offerings Completed ..........................................................................................................3

Size of Offerings, Red Herring Midpoint ............................................................................4

Size of Offerings, Final IPO Price .......................................................................................5

Aggregate Amount Raised, Red Herring Midpoint ............................................................6

Aggregate Amount Raised, Final IPO Price .......................................................................7

Price Changes Between the Red Herring and Initial Offering Price.................................. 8

Days on File......................................................................................................................12

Price Changes Around the Expiration of the Lock-Up .....................................................13

Insider Participation ..........................................................................................................14

Technology Offerings .......................................................................................................15

Life Sciences Offerings ...................................................................................................17

Methodology ....................................................................................................................19

Disclaimer.........................................................................................................................19

Sign-Up Information .........................................................................................................19

Authors

Contact the authors or members of your client service team to discuss the report or for more information.

James D. [email protected]

Robert A. [email protected]

Page 3: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

2KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

The life sciences and technology IPO markets continued their strong performance in the second half of 2018, notwithstanding significant market volatility, a sharp decline in the stock market and a looming federal government shutdown at the end of the year.

The year started slowly but then quickly gained steam with an unusual number of IPOs over the summer before activity slowed again in the last few months.

By the Numbers The 57 life sciences and technology offerings completed in the second half of 2018 were on par with the 56 in the first half of the year and made for the highest number for a half-year period since the first half of 2015, when 55 such offerings were completed.

The 34 life sciences offerings completed in the second half of 2018 were the highest number since 37 were completed in the first half of 2015. Technology offerings in the second half of 2018, with 23 IPOs, matched the number in the first half of 2018.

Though the year ended with a dip as many companies, including highly valued tech unicorns, put their offerings on hold—thanks in large part to market and political uncertainty—the resulting pent up demand from institutional investors will likely have a ripple effect in the market, making for a strong 2019 for IPOs.

ValuationsUnlike the first half of 2018, when the vast majority of technology deals produced offering proceeds in excess of $100 million, the second half of the year was marked by an unusually large spread in valuations. About 17% of tech deals priced in the $50 million to $75 million range on the low end, and about the same percent priced at $1 billion or more at the higher end. Life sciences offerings showed more of a sweet spot in amounts raised: The majority of IPOs in the second half of the year raised between $50 million and $125 million with 23.5% in the $50 million to $75 million range. Only four offerings in the second half of 2018 had proceeds of more than $1 billion. The largest was a technology offering for China-based Pinduoduo that raised $1.6 billion. The largest life sciences offering, Elanco Animal Health Incorporated, raised just over $1.5 billion. The second half of 2018 included 19 offshore companies, compared with 17 in the first half of 2018.

Survey Results Life Sciences and Tech IPOs Continued Hot Streak in Second Half

Insider ParticipationA surprisingly high percentage of tech IPOs—65.2%—reported insider participation, which is three times higher than the 20% of tech IPOs in the first half where insiders participated. Existing investors bought into 15 of the 23 tech IPOs in the second half of the year.

Approximately 65% of life sciences deals saw insiders purchasing IPO shares and/or purchasing shares in a simultaneous private placement (down from about 80% in the first half).

Dual-Class Share Structure The dual-class capital structure continued to be widely utilized by technology companies, as 13 technology IPOs featured this structure, compared to 15 in the first half. Only one life sciences company had a dual-class structure, the same as in the first half.

Pricing The clear majority of offerings in the second half of 2018 priced within or above-range, 82.6% of tech offerings and 79.4% of life sciences offerings, underscoring a relatively strong and stable market environment. Just four technology offerings and seven life sciences offerings priced below the red herring range.

The results indicate that last year’s IPOs were well priced with healthy but modest first-day gains. Consistent with prior half-year periods, technology offerings enjoyed stronger first-day trading as 87% traded up at first day close compared to 64.7% of life sciences offerings.

OutlookOur 2018 data suggests a healthy and stable market, with deals well priced, trending up on average 90% on first-day close for tech and 65% for life sciences. That bodes well for 2019 and we are starting to see that play out. We currently view the market as highly receptive.

NUMBER OF IPO DEALS IN H2 2018

Page 4: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

3KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

0

3

6

9

12

15

18

21

24

27

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2017

Life Sciences—International

Technology—International

Life Sciences—U.S.

Technology—U.S.

6

8 87

9 98

32

5 5 5

0

443 3

5

31

3

13 13

11 1110 10 10

1212 121

1

21

4

4

44

4

4

3

1213

16 1615

18

6

2

2

2

3

93

53

51

2

8

2

4

4

6

2

1

2018

8

3

5

14

1

12

8

5

1

3

4

5

7

7

3

3

19

5

1015

4

4

14

32

IPOS PER QUARTER 2012 – 2018

Offerings CompletedThis graph shows the number of technology

and life sciences IPOs completed during each

quarter of 2012 through 2018.

IPOS

IPOS

LIFE

LIFE

SCIE

SCIE

NC

NC

ES

ES

TE

TE

CH

CH

0

3

6

9

12

15

18

21

24

27

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2017

Life Sciences—International

Technology—International

Life Sciences—U.S.

Technology—U.S.

6

8 87

9 98

32

5 5 5

0

443 3

5

31

3

13 13

11 1110 10 10

1212 121

1

21

4

4

44

4

4

3

1213

16 1615

18

6

2

2

2

3

93

53

51

2

8

2

4

4

6

2

1

2018

8

3

5

14

1

12

8

5

1

3

4

5

7

7

3

3

19

5

1015

4

4

14

32

34

Page 5: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

4KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

RED HERRING DEAL COMPARISON (MIDPOINT PRICE): 2018, SECOND HALF

Size of Offerings, Red Herring Midpoint

Pinduoduo

ElancoAnimalHealth

NIO

Tencent

StoneCo

SolarWinds

Farfetch

Moderna

$0

$10

$20

$30

0 50 100 150 17525 75 125

SharePrice

Number of Shares in Millions

Life Sciences International (5 deals)

Technology International (14 deals)

Life Sciences U.S. (29 deals)

Technology U.S. (9 deals)

Bubble Size = deal size

$500M

$1.498B

$18M

Pinduoduo

ElancoAnimalHealth

NIO

Tencent

StoneCo

SolarWinds

Farfetch

Moderna

$0

$10

$20

$30

0 50 100 150 17525 75 125

SharePrice

Number of Shares in Millions

Life Sciences International (5 deals)

Technology International (14 deals)

Life Sciences U.S. (29 deals)

Technology U.S. (9 deals)

Bubble Size = deal size

$500M

$1.498B

$18M

GreenSky

Dropbox

Pivotal

DocuSign

BilibiliUxin

Ceridian

$0

$10

$20

$30

SharePrice

Number of Shares in Millions

Life Sciences International (5 deals)

Technology International (5 deals)

Life Sciences U.S. (28 deals)

Technology U.S. (17 deals)

0 20 4010 30 50

Bubble Size = deal size

$420M

$750M

$60M

The following scatter graphs plot technology and life sciences IPOs

completed during the first and second half of 2018 in terms of the

initial offering price per share and number of shares offered based

on the red herring prospectus.

RED HERRING DEAL COMPARISON (MIDPOINT PRICE): 2018, FIRST HALF

This graph excludes Spotify and ASLAN Pharmaceuticals, as neither offering had a price range. iQIYI as an outlier was also

excluded, with a deal size of $2.3 billion, a share price of $18.00 and 125 million shares.

Page 6: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

5KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

IPO DEAL COMPARISON 2018, SECOND HALF

Size of Offerings, Final IPO PriceThe following scatter graphs plot technology and life sciences IPOs

completed during the first and second half of 2018 in terms of the

initial offering price per share and number of shares offered based

on actual pricing of the offering.

IPO DEAL COMPARISON 2018, FIRST HALF

This graph excludes Spotify, as unlike a traditional offering, the selling stockholders were not committed to the sale of a fixed

number, or any, shares and were not given a fixed price at which the company’s shares would be purchased. iQIYI as an outlier

was also excluded, with a deal size of $2.3 billion, a share price of $18.00 and 125 million shares.

Moderna

Pinduoduo

NIO

Tencent

ElancoAnimalHealth

SolarWinds

Farfetch

StoneCo

$0

$10

$20

$30

0 50 100 150 17525 75 125

SharePrice

Number of Shares in Millions

Life Sciences International (5 deals)

Technology International (14 deals)

Life Sciences U.S. (29 deals)

Technology U.S. (9 deals)

Bubble Size = deal size

$604M

$1.626B

$22M

Moderna

Pinduoduo

NIO

Tencent

ElancoAnimalHealth

SolarWinds

Farfetch

StoneCo

$0

$10

$20

$30

0 50 100 150 17525 75 125

SharePrice

Number of Shares in Millions

Life Sciences International (5 deals)

Technology International (14 deals)

Life Sciences U.S. (29 deals)

Technology U.S. (9 deals)

Bubble Size = deal size

$604M

$1.626B

$22M

GreenSky

Dropbox

Pivotal

DocuSign

Bilibili

Uxin

Ceridian

$0

$10

$20

$30

SharePrice

Number of Shares in Millions

Life Sciences International (6 deals)

Technology International (5 deals)

Life Sciences U.S. (28 deals)

Technology U.S. (17 deals)

0 20 4010 30 50Bubble Size = deal size

$462M

$874M

$42M

Page 7: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

6KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

Aggregate Amount Raised, Red Herring Midpoint

DISTRIBUTION OF DEAL SIZE (RED HERRING MIDPOINT): 2018, SECOND HALF

12.5%

50.0%

25.0%

6.3%3.2% 3.2%

deal size

% of deals

Technology Deal Size Distribution$75M $100M $125M $150M $175M $200M $400M $425M $450M $475M $500M $525M $550M $600M $625M $725M $750M $2.3B$250M$225M

13.6%

9.1% 9.1%

18.2%

4.5% 4.5%4.5% 4.5% 4.5%

$575M

4.5% 4.5% 4.5% 4.5%4.5% 4.5%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M $225M

12.5%

50.0%

25.0%

6.3%3.2% 3.2%

deal size

% of deals

Technology Deal Size Distribution$75M $100M $125M $150M $175M $200M $400M $425M $450M $475M $500M $525M $550M $600M $625M $725M $750M $2.3B$250M$225M

13.6%

9.1% 9.1%

18.2%

4.5% 4.5%4.5% 4.5% 4.5%

$575M

4.5% 4.5% 4.5% 4.5%4.5% 4.5%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M $225M

deal size

% of deals

Technology Deal Size Distribution

$50M $75M $100M $125M $150M $175M $200M $600M$225M $625M $750M $775M

Life Sciences Deal Size Distribution

$50M $75M $100M $125M $150M$25M$0M $200M $225M $250M $275M$175M deal size

% of deals

32.4%

8.9%

14.7% 14.7%

4.3%

17.4%

4.3%

13.0%

4.3%

13.0%

5.9% 5.9%2.9% 2.9% 2.9% 2.9%

$500M $525M

2.9%

$250M

4.3% 4.3% 4.3%

8.7%8.7%

$1.0B

8.7%

4.3%

$1.5B$1.15B $1.16B

$1.4B

2.9%

DISTRIBUTION OF DEAL SIZE (RED HERRING MIDPOINT): 2018, FIRST HALF

The following graphs provide information about aggregate deal size at the red herring stage in the first and second half of 2018.

deal size

% of deals

Technology Deal Size Distribution

$50M $75M $100M $125M $150M $175M $200M $600M$225M $625M $750M $775M

Life Sciences Deal Size Distribution

$50M $75M $100M $125M $150M$25M$0M $200M $225M $250M $275M$175M deal size

% of deals

32.4%

8.9%

14.7% 14.7%

4.3%

17.4%

4.3%

13.0%

4.3%

13.0%

5.9% 5.9%2.9% 2.9% 2.9% 2.9%

$500M $525M

2.9%

$250M

4.3% 4.3% 4.3%

8.7%8.7%

$1.0B

8.7%

4.3%

$1.5B$1.15B $1.16B

$1.4B

2.9%

These graphs exclude Spotify and ASLAN Pharmaceuticals, as neither offering had a price range.

Page 8: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

7KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

Aggregate Amount Raised, Final IPO Price

DISTRIBUTION OF DEAL SIZE (FINAL IPO PRICE): 2018, SECOND HALF

20.6%

8.9%5.9%

23.5%

11.8%8.9%

2.9%2.9%5.9%

deal size

% of deals

Technology Deal Size Distribution$50M $75M $100M $125M $150M $175M $200M $250M$225M $275M

17.4%

4.3% 4.3%

8.7% 8.7%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M$25M$25M $225M

2.9%

$250M

8.7%

4.3% 4.3%

$375M $400M

4.3%

$885M

4.3%

$1.0B $1.1B

4.3% 4.3% 4.3%

$1.6B$1.2B

4.3%

13.0%

2.9% 2.9%

$324M $604M $1.5B

20.6%

8.9%5.9%

23.5%

11.8%8.9%

2.9%2.9%5.9%

deal size

% of deals

Technology Deal Size Distribution$50M $75M $100M $125M $150M $175M $200M $250M$225M $275M

17.4%

4.3% 4.3%

8.7% 8.7%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M$25M$25M $225M

2.9%

$250M

8.7%

4.3% 4.3%

$375M $400M

4.3%

$885M

4.3%

$1.0B $1.1B

4.3% 4.3% 4.3%

$1.6B$1.2B

4.3%

13.0%

2.9% 2.9%

$324M $604M $1.5B

30.3%

3.0%

39.4%

9.1%6.1% 6.1%6.1%

deal size

% of deals

Technology Deal Size Distribution$50M $75M $100M $125M $150M $175M $200M $450M $475M $500M$300M $325M $550M $575M $625M $650M $750M $775M $850M $875M $2.3B$250M$225M

4.5% 4.5%

13.6% 13.6%

18.2%

4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%4.5% 4.5%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M$25M $225M

30.3%

3.0%

39.4%

9.1%6.1% 6.1%6.1%

deal size

% of deals

Technology Deal Size Distribution$50M $75M $100M $125M $150M $175M $200M $450M $475M $500M$300M $325M $550M $575M $625M $650M $750M $775M $850M $875M $2.3B$250M$225M

4.5% 4.5%

13.6% 13.6%

18.2%

4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%4.5% 4.5%

Life Sciences Deal Size Distribution

deal size

% of deals

$50M $75M $100M $125M $150M $175M $200M$25M $225M

DISTRIBUTION OF DEAL SIZE (FINAL IPO PRICE): 2018, FIRST HALF

The following graphs provide information about aggregate deal size based on the actual pricing of the offering in the first and second half of 2018.

This graph excludes Spotify, as unlike a traditional offering, the selling stockholders were not committed to the sale of a fixed number, or

any, shares and were not given a fixed price at which the company’s shares would be purchased.

Page 9: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

8KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

Price Changes Between the Red Herring and Initial Offering Price

Technology

Life Sciences

$10

$12

$16

$18

$20

$15.00$15.00

$16.00$16.00

$19.75

$15.00$14.50

$15.07

$17.65

$14.00

$15.00

$17.24

2018 H22018 H1

Red Herring Final Price 1st Day Close

AVERAGE PRICES FOR TECHNOLOGY & LIFE SCIENCES IPO DEALS

MEDIAN PRICES FOR TECHNOLOGY & LIFE SCIENCES IPO DEALS

Red Herring Final Price 1st Day Close

Technology

$10

$12

$14

$16

$18

$20

$22

$14.41

$16.87

$18.93

$22.12

$16.89

$15.11

$15.81$15.38

$20.89

$14.95

$14.82

$15.58

2018 H22018 H1

Life Sciences

Estimating the offering price for the IPO in the red herring prospectus and pricing the IPO

upon completion of marketing efforts are processes that are equal parts science and art.

These graphs show the median and average prices for technology and life sciences IPOs

from the red herring stage to the actual public offering price to the closing price on the

first day of trading, for the first and second half of 2018.

These graphs exclude Spotify and ASLAN Pharmaceuticals, as neither offering had a price range.

Page 10: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

9KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

RELATION OF FINAL IPO PRICE TO ORIGINAL RED HERRING RANGE (% OF DEALS) 2018, FIRST HALF

RELATION OF FINAL IPO PRICE TO ORIGINAL RED HERRING RANGE (% OF DEALS) 2018, SECOND HALF

RELATION OF PRICE AT 1ST DAY CLOSE TO FINAL IPO PRICE (% OF DEALS) 2018, FIRST HALF

RELATION OF PRICE AT 1ST DAY CLOSE TO FINAL IPO PRICE (% OF DEALS) 2018, SECOND HALF

Life Sciences

Technology

DealsAboveRange

WithinRange

BelowRange

17.6%

61.8%

20.6%

39.1%

43.5%

17.4%

The two graphs on the left show the percentage of technology and life sciences IPOs

with a final price that falls above, within or below the red herring range in the first and

second half of 2018. The two graphs on the right show the percentage of technology

and life sciences deals that closed up, down or flat on their first day of trading in the

first and second half of 2018.

Price Changes (continued)

ClosedUp

ClosedFlat

ClosedDown

20.0%

Life Sciences

Technology

14.7%

64.7%

20.6%

87.0%

4.3%

8.7%

Technology

Life Sciences

Technology

DealsAboveRange

WithinRange

BelowRange

18.8%

78.1%

3.1%

50.0%

45.5%

4.5%

Life Sciences

Technology

ClosedUp

ClosedFlat

ClosedDown

90.9%

9.1%

66.7%

30.3%3.0%

This graph excludes Spotify and ASLAN Pharmaceuticals, as

neither offering had a price range.

This graph excludes Spotify, as unlike a traditional offering, the

selling stockholders were not committed to the sale of a fixed

number, or any, shares and were not given a fixed price at which

the company’s shares would be purchased.

Page 11: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

10KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

The following graphs show the technology company IPOs with the largest percentage gain and

loss from the red herring midpoint to the actual initial public offering price and from the initial public

offering price to the first day of trading for IPOs completed in the first and second half of 2018.

50.0%

73.6%

92.1%

42.9%43.7%

58.7%

94.4%

128.1%

Ana

plan

SV

MK

Eve

ntbr

ite

Ela

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N.V

.

Qut

outia

o

Ela

nco

Ani

mal

Hea

lth

Alla

kos

Prin

cipi

a B

ioph

arm

a

-28.9%

Ent

asis

The

rape

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s H

oldi

ngs

Con

stel

latio

n P

harm

aceu

tical

s

-23.3%-19.1%

Mod

erna

Uro

vant

Vac

cine

x

-16.8%

-5.2%

50.0%

Y-m

Abs

The

rape

utic

s

69.5%

Gua

rdan

t Hea

lth

-3.9%

Niu

Tec

hnol

ogie

s

-21.3%

Coo

Tek

(Cay

man

)

Technology—International

Technology—U.S.

BIGGEST MOVERS – IPO PRICE TO PRICE AT 1ST DAY CLOSE 2018, SECOND HALF

BIGGEST MOVERS – RED HERRING PRICE TO FINAL IPO PRICE 2018 SECOND HALF

BIGGEST MOVERS – IPO PRICE TO PRICE AT 1ST DAY CLOSE 2018, FIRST HALF

Price Changes (continued)

12.5%

18.8%

27.8% 25.0%

36.4%

Tena

ble

Hol

ding

s

Farfe

tch

Lim

ited

30.9%

Ela

stic

N.V

.

Upw

orrk

21.4%

Ana

plan

Alla

kos

Gua

rdan

t Hea

lth

13.3%

Tilra

y

13.3%

Ra

Med

ical

Sys

tem

s

11.6%E

lanc

o A

nim

al H

ealth

-13.7%

NIO

-15.8%

Arlo

Tec

hnol

ogie

s

-16.7%

Sol

arW

inds

Cor

pora

tion

-16.7%

Son

os

-21.7%

Niu

Tec

hnol

ogie

s-42.9%

-28.6%-23.1%

Osm

otic

a P

harm

aceu

tical

s

Gam

ida

Cel

l

Kod

iak

Sci

ence

s

Logi

cBio

The

rape

utic

s

-53.3%

Pha

seB

io P

harm

aceu

tical

s

-61.5%

BIGGEST MOVERS – RED HERRING PRICE TO FINAL IPO PRICE 2018, FIRST HALF

Geographical Distribution of Technology Company IPOs

11.8%13.3%

36.4% 36.4%

45.5%

13.3% 13.3%

Plu

rals

ight

Sm

arts

heet

40.0%

Zsca

ler

Zuor

a

23.5%

Dro

pbox

Tric

ida

11.8%

AV

RO

BIO

AR

MO

Bio

Sci

ence

s

Men

lo T

hera

peut

ics

Neu

rone

tics

-7.1%

Car

dlyt

ics

-21.7%

Uxi

n

Unu

m T

hera

peut

ics

-7.7%

Evo

lus

-7.7%

Sol

id B

iosc

ienc

es

-5.9%

Iteru

m T

hera

peut

ics

-13.3%

56.1%

74.9%

68.4%

42.9%

106.3%

68.9%63.4%

nLig

ht87.3%

Zsca

ler

Ava

lara

41.9%

Cer

idia

n H

CM

Hol

ding

Zuor

aInsp

ire M

edic

al S

yste

ms

47.1%

Aut

olus

The

rape

utic

s

AR

MO

Bio

Sci

ence

s

Men

lo T

hera

peut

ics

Neu

rone

tics

-2.3%

Bili

bili

-13.6%

iQIY

I

Tran

slat

e B

io-11.4%

Sur

face

Onc

olog

y

-11.1%

Unu

m T

hera

peut

ics

-7.4%

Neo

n Th

erap

eutic

s

-6.3%

AS

LAN

Pha

rmac

eutic

als

-20.2%

This graph excludes Spotify, as the offering did not

have a price range.

This graph excludes Spotify, as unlike a traditional

offering, the selling stockholders were not committed

to the sale of a fixed number, or any, shares and were

not given a fixed price at which the company’s shares

would be purchased.

Page 12: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

11KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

The following graphs show the life sciences company IPOs with the largest

percentage gain and loss from the red herring midpoint to the actual initial

public offering price and from the initial public offering price to the first day

of trading for IPOs completed in the first and second half of 2018.

50.0%

73.6%

92.1%

42.9%43.7%

58.7%

94.4%

128.1%

Ana

plan

SV

MK

Eve

ntbr

ite

Ela

stic

N.V

.

Qut

outia

o

Ela

nco

Ani

mal

Hea

lth

Alla

kos

Prin

cipi

a B

ioph

arm

a

-28.9%

Ent

asis

The

rape

utic

s H

oldi

ngs

Con

stel

latio

n P

harm

aceu

tical

s

-23.3%-19.1%

Mod

erna

Uro

vant

Vac

cine

x

-16.8%

-5.2%

50.0%

Y-m

Abs

The

rape

utic

s

69.5%

Gua

rdan

t Hea

lth

-3.9%

Niu

Tec

hnol

ogie

s

-21.3%

Coo

Tek

(Cay

man

)

Life Sciences—International

Life Sciences—U.S.

BIGGEST MOVERS – IPO PRICE TO PRICE AT 1ST DAY CLOSE 2018, SECOND HALF

BIGGEST MOVERS – RED HERRING PRICE TO FINAL IPO PRICE 2018, SECOND HALF

BIGGEST MOVERS – IPO PRICE TO PRICE AT 1ST DAY CLOSE 2018, FIRST HALF

Price Changes (continued)

12.5%

18.8%

27.8% 25.0%

36.4%

Tena

ble

Hol

ding

s

Farfe

tch

Lim

ited

30.9%

Ela

stic

N.V

.

Upw

orrk

21.4%

Ana

plan

Alla

kos

Gua

rdan

t Hea

lth

13.3%

Tilra

y

13.3%

Ra

Med

ical

Sys

tem

s

11.6%

Ela

nco

Ani

mal

Hea

lth

-13.7%

NIO

-15.8%

Arlo

Tec

hnol

ogie

s

-16.7%

Sol

arW

inds

Cor

pora

tion

-16.7%

Son

os

-21.7%

Niu

Tec

hnol

ogie

s

-42.9%

-28.6%-23.1%

Osm

otic

a P

harm

aceu

tical

s

Gam

ida

Cel

l

Kod

iak

Sci

ence

s

Logi

cBio

The

rape

utic

s

-53.3%P

hase

Bio

Pha

rmac

eutic

als

-61.5%

BIGGEST MOVERS – RED HERRING PRICE TO FINAL IPO PRICE 2018, FIRST HALF

Geographical Distribution of Life Sciences Company IPOs

11.8%13.3%

36.4% 36.4%

45.5%

13.3% 13.3%

Plu

rals

ight

Sm

arts

heet

40.0%

Zsca

ler

Zuor

a

23.5%

Dro

pbox

Tric

ida

11.8%

AV

RO

BIO

AR

MO

Bio

Sci

ence

s

Men

lo T

hera

peut

ics

Neu

rone

tics

-7.1%

Car

dlyt

ics

-21.7%

Uxi

n

Unu

m T

hera

peut

ics

-7.7%

Evo

lus

-7.7%

Sol

id B

iosc

ienc

es

-5.9%

Iteru

m T

hera

peut

ics

-13.3%

56.1%

74.9%

68.4%

42.9%

106.3%

68.9%63.4%

nLig

ht87.3%

Zsca

ler

Ava

lara

41.9%

Cer

idia

n H

CM

Hol

ding

Zuor

aInsp

ire M

edic

al S

yste

ms

47.1%

Aut

olus

The

rape

utic

s

AR

MO

Bio

Sci

ence

s

Men

lo T

hera

peut

ics

Neu

rone

tics

-2.3%

Bili

bili

-13.6%

iQIY

I

Tran

slat

e B

io

-11.4%

Sur

face

Onc

olog

y

-11.1%

Unu

m T

hera

peut

ics

-7.4%

Neo

n Th

erap

eutic

s

-6.3%

AS

LAN

Pha

rmac

eutic

als

-20.2%

This graph excludes ASLAN Pharmaceuticals, as the offering

did not have a price range.

Page 13: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

12KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

11.8% 11.8% 11.8%

17.6% 17.6%

5.9% 5.9%

number of days

% of deals

60 75 90 105 120 135 150 165 180 195 210 225

8.7%

30.4%

4.3%

17.4% 17.4%13.0%

number of days

% of deals

60 75 90 105 120 135 150

2.9% 2.9% 2.9%

165 210 225 345 360240 255 270

2.9% 2.9% 2.9%

300285

Life Sciences

Technology

1168

4.3% 4.3%

Days on FileDISTRIBUTION OF DAYS BETWEEN INITIAL SUBMISSION AND FINAL PRICING 2018, FIRST HALFThese graphs display the percentage of deals that priced

within each 15-day period from the initial confidential

submission date or, rarely, initial public submission.

DISTRIBUTION OF DAYS BETWEEN INITIAL SUBMISSION AND FINAL PRICING 2018, SECOND HALF

number of days

% of deals

60 75 90 105 120 135 150 165 180 195 210 315 330 345 360 375 390300

26.1%

21.7%

17.4%

8.7%

4.3% 4.3%

285

4.3% 4.3% 4.3% 4.3%

number of days

% of deals

45

Life Sciences

Technology

3.0%3.0%3.0%6.1%6.1%

9.1%9.1%

21.2%

27.3%

6.1%3.0% 3.0%

60 75 90 105 120 135 150 165 180 195 210 360 37545 480 495

Page 14: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

13KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

Price Changes Around the Expiration of the Lock-UpPERCENT CHANGE OF SHARE PRICES SURROUNDING END OF LOCK-UP PERIOD 2018, FIRST HALF

-10%

-5%

0%

5%

2 wks prior Lock-up 2 wks post

Technology Median-2.7%

Life Sciences Median-10.6%Life Sciences Avg-11.5%

Technology Avg-2.3%

End of Lock-Up

In order to assist the development of an orderly market for the

shares being offered, IPO underwriters require the stockholders

of the offering company to agree not to sell shares of the

company’s common stock for a specified period without the

underwriters’ consent. Customarily, this period is 180 days

and applies equally to all holders delivering the “lock-up”

agreement, although in a few instances the lock-up may roll

off in stages, and different holders may be subject to different

restrictive periods. Upon expiration of the lock-up period, there

generally is an influx of “supply,” as pre-IPO stockholders

have their first ability to sell shares into the public market. The

graphs on this page show the average and median changes

in the closing trading price of the subject company shares for

the period beginning two weeks prior, and ending two weeks

following, the scheduled expiration of the lock-up period for

lock-ups expiring in the first and second half of 2018. Those

companies completing IPOs in the second half of 2017 and a

follow-on offering within 180 days are excluded from the top

graph. Those companies completing IPOs in the first half of

2018 and a follow-on offering within 180 days are excluded

from the bottom graph.

PERCENT CHANGE OF SHARE PRICES SURROUNDING END OF LOCK-UP PERIOD 2018, SECOND HALF

Life Sciences Median

Life Sciences Avg

-10%

-5%

0%

5%

2 wks prior Lock-up 2 wks post

Technology Median-4.7%

-2.0%

Technology Avg-4.6%

-0.2%

End of Lock-Up

Page 15: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

14KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

PERCENTAGE OF DEALS WITH INSIDER PARTICIPATION AND PERCENTAGE OF OFFERING MADE AVAILABLE TO INSIDERS 2018, FIRST HALF

PERCENTAGE OF DEALS WITH INSIDER PARTICIPATION AND PERCENTAGE OF OFFERING MADE AVAILABLE TO INSIDERS 2018, SECOND HALF

65.2%

64.7%

Life Sciences Technology

PERCENT OF OFFERING

1-25% OF OFFERING

25-50% OF OFFERING

50%+ OFOFFERING

Insider Participation

These charts show the percentage of life sciences and technology IPOs in which the final prospectus indicated that specified “insiders”

had expressed an interest in purchasing shares in the offering or in a concurrent private placement. Insiders are directors and officers of a

company as well as existing stockholders. In this case, insiders are typically existing investors who buy additional shares in the IPO or in a

concurrent private placement. Among life sciences IPOs with insider interest, the inset shows the breakdown of shares set aside for insiders.

26.1%

81.8%

Life Sciences Technology

PERCENT OF OFFERING

1-25% OF OFFERING

25-50% OF OFFERING

50%+ OFOFFERING

Page 16: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

15KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

1 The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market or those with proceeds of less than $10 million.2 Rows shaded in orange represent International Technology IPOs.3 Final share numbers do not reflect any exercise of the over-allotment option.

Technology Offerings

H1 20181, 2

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Huami Corporation NYSE:HMI $11.00 2/8/18 10,000,000 $11.00 $110,000,000

Cardlytics, Inc. NasdaqGM:CDLX $14.00 2/9/18 5,400,000 $13.00 $70,200,000

Zscaler, Inc. NasdaqGS:ZS $11.00 3/16/18 12,000,000 $16.00 $192,000,000

Dropbox, Inc. NasdaqGS:DBX $17.00 3/23/18 36,000,000 $21.00 $756,000,000

Bilibili Inc. NasdaqGS:BILI $11.50 3/28/18 42,000,000 $11.50 $483,000,000

iQIYI, Inc. NasdaqGS:IQ $18.00 3/29/18 125,000,000 $18.00 $2,250,000,000

Spotify Technology NYSE:SPOT NA 4/3/18 NA NA NA

Zuora, Inc. NYSE:ZUO $10.00 4/12/18 11,000,000 $14.00 $154,000,000

Pivotal Software, Inc. NYSE:PVTL $15.00 4/20/18 37,000,000 $15.00 $555,000,000

nLIGHT, Inc NYSE:CDAY $14.00 4/26/18 6,000,000 $16.00 $96,000,000

Ceridian HCM Holding Inc. NYSE:CDAY $20.00 4/26/18 21,000,000 $22.00 $462,000,000

DocuSign, Inc. NasdaqGS:DOCU $25.00 4/27/18 21,700,000 $29.00 $629,300,000

Smartsheet Inc. NYSE:SMAR $11.00 4/27/18 11,633,920 $15.00 $174,508,800

Carbon Black, Inc. NasdaqGS:CBLK $16.00 5/4/18 8,000,000 $19.00 $152,000,000

HUYA Inc. NYSE:HUYA $11.00 5/11/18 15,000,000 $12.00 $180,000,000

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Pluralsight, Inc. NasdaqGS:PS $11.00 5/17/18 20,700,000 $15.00 $310,500,000

EVO Payments, Inc. NasdaqGM:EVOP $15.00 5/23/18 14,000,000 $16.00 $224,000,000

GreenSky, Inc. NasdaqGS:GSKY $22.00 5/24/18 38,000,000 $23.00 $874,000,000

Avalara, Inc. NYSE:AVLR $20.00 6/15/18 7,500,000 $24.00 $180,000,000

i3 Verticals, Inc. NasdaqGS:IIIV $12.00 6/21/18 6,650,000 $13.00 $86,450,000

Uxin Ltd NasdaqGS:UXIN $11.50 6/27/18 25,000,000 $9.00 $225,000,000

EverQuote, Inc. NasdaqGM:EVER $16.00 6/28/18 4,687,500 $18.00 $84,375,000

Domo, Inc. NasdaqGM:DOMO $20.50 6/29/18 9,200,000 $21.00 $193,200,000

Page 17: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

16KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

1 The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market or those with proceeds of less than $10 million.2 Rows shaded in orange represent International Technology IPOs.3 Final share numbers do not reflect any exercise of the over-allotment option.

Technology Offerings

H2 20181, 2

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Aurora Mobile Limited NasdaqGM:JG $9.50 7/26/18 9,060,000 $8.50 $77,010,000

Pinduoduo Inc. NasdaqGS:PDD $17.50 7/26/18 85,600,000 $19.00 $1,626,400,000

Tenable Holdings, Inc. NasdaqGS:TENB $18.00 7/26/18 10,900,000 $23.00 $250,700,000

Endava plc NYSE:DAVA $18.00 7/27/18 6,340,000 $20.00 $126,800,000

Opera Limited NasdaqGS:OPRA $11.00 7/27/18 9,600,000 $12.00 $115,200,000

Sonos, Inc. NasdaqGS:SONO $18.00 8/2/18 13,888,888 $15.00 $208,333,320

Arlo Technologies, Inc. NYSE:ARLO $19.00 8/3/18 10,215,000 $16.00 $163,440,000

NIO Inc. NYSE:NIO $7.25 9/12/18 160,000,000 $6.26 $1,001,600,000

Qutoutiao Inc. NasdaqGS:QTT $8.00 9/14/18 12,000,000 $7.00 $84,000,000

Eventbrite, Inc. NYSE:EB $20.00 9/20/18 10,000,000 $23.00 $230,000,000

Farfetch Limited NYSE:FTCH $16.00 9/21/18 44,243,749 $20.00 $884,874,980

Viomi Technology Co., Ltd NasdaqGS:VIOT $10.00 9/25/18 11,400,000 $9.00 $102,600,000

SVMK Inc. NasdaqGS:SVMK $10.00 9/26/18 15,000,000 $12.00 $180,000,000

LAIX Inc. NYSE:LAIX $12.50 9/27/18 5,750,000 $12.50 $71,875,000

CooTek (Cayman) Inc. NYSE:CTK $13.00 9/28/18 4,350,000 $12.00 $52,200,000

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Upwork Inc. NasdaqGS:UPWK $11.00 10/3/18 12,476,693 $15.00 $187,150,395

Elastic N.V. NYSE:ESTC $27.50 10/5/18 7,000,000 $36.00 $252,000,000

Anaplan, Inc. NYSE:PLAN $14.00 10/12/18 15,500,000 $17.00 $263,500,000

Niu Technologies NasdaqGM:NIU $11.50 10/19/18 7,000,000 $9.00 $63,000,000

SolarWinds Corporation NYSE:SWI $18.00 10/19/18 25,000,000 $15.00 $375,000,000

StoneCo Ltd. NasdaqGS:STNE $22.00 10/25/18 50,724,638 $24.00 $1,217,391,312

MOGU Inc. NYSE:MOGU $15.00 12/6/18 4,750,000 $14.00 $66,500,000

Tencent Music Entertainment Group NYSE:TME $14.00 12/12/18 82,000,000 $13.00 $1,066,000,000

Page 18: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

17KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

1 The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market or those with proceeds of less than $10 million.2 Rows shaded in blue represent International Life Sciences IPOs.3 Final share numbers do not reflect any exercise of the over-allotment option.

Life Sciences Offerings

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Menlo Therapeutics Inc. NasdaqGS:MNLO $15.00 1/25/18 7,000,000 $17.00 $119,000,000

ARMO BioSciences, Inc. NasdaqGS:ARMO $15.00 1/26/18 7,529,412 $17.00 $128,000,004

resTORbio, Inc. NasdaqGS:TORC $15.00 1/26/18 5,666,667 $15.00 $85,000,005

Solid Biosciences Inc. NasdaqGS:SLDB $17.00 1/26/18 7,812,500 $16.00 $125,000,000

Sol-Gel Technologies Ltd. NasdaqGM:SLGL $12.00 2/1/18 6,250,000 $12.00 $75,000,000

Evolus, Inc. NasdaqGM:EOLS $13.00 2/8/18 5,000,000 $12.00 $60,000,000

Arcus Biosciences, Inc. NYSE:RCUS $14.00 3/15/18 8,000,000 $15.00 $120,000,000

Homology Medicines, Inc. NasdaqGS:FIXX $15.00 3/28/18 9,000,000 $16.00 $144,000,000

Unum Therapeutics Inc. NasdaqGS:UMRX $13.00 3/29/18 5,770,000 $12.00 $69,240,000

MorphoSys AG NasdaqGS:MOR $24.12 4/19/18 8,300,000 $25.04 $207,832,000

Surface Oncology, Inc. NasdaqGM:SURF $14.00 4/19/18 7,200,000 $15.00 $108,000,000

Unity Biotechnology, Inc. NasdaqGS:UBX $17.00 5/3/18 5,000,000 $17.00 $85,000,000

Inspire Medical Systems, Inc. NYSE:INSP $15.00 5/3/18 6,750,000 $16.00 $108,000,000

ASLAN Pharmaceuticals Limited NasdaqGM:ASLN NA 5/4/18 6,000,000 $7.03 $42,180,000

Evelo Biosciences, Inc. NasdaqGS:EVLO $16.00 5/9/18 5,312,500 $16.00 $85,000,000

Scholar Rock Holding Corporation NasdaqGS:SRRK $14.00 5/24/18 5,360,000 $14.00 $75,040,000

H1 20181, 2

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Kiniksa Pharmaceuticals, Ltd. NasdaqGS:KNSA $18.00 5/24/18 8,477,777 $18.00 $152,599,986

Iterum Therapeutics plc NasdaqGM:ITRM $15.00 5/25/18 6,150,000 $13.00 $79,950,000

MeiraGTx Holdings plc NasdaqGS:MGTX $15.00 6/8/18 5,000,000 $15.00 $75,000,000

Verrica Pharmaceuticals Inc. NasdaqGM:VRCA $15.00 6/15/18 5,000,000 $15.00 $75,000,000

Eidos Therapeutics, Inc. NasdaqGS:EIDX $16.00 6/20/18 6,250,000 $17.00 $106,250,000

AVROBIO, Inc. NASDAQ: AVRO $17.00 6/21/18 5,247,958 $19.00 $99,711,202

Xeris Pharmaceuticals, Inc. NasdaqGS:XERS $15.00 6/21/18 5,700,000 $15.00 $85,500,000

Aptinyx Inc. NasdaqGS:APTX $15.00 6/21/18 6,399,999 $16.00 $102,399,984

Magenta Therapeutics, Inc. NasdaqGM:MGTA $15.00 6/21/18 6,666,667 $15.00 $100,000,005

Kezar Life Sciences, Inc. NasdaqGS:KZR $15.00 6/21/18 5,000,000 $15.00 $75,000,000

Autolus Therapeutics plc NasdaqGS:AUTL $16.00 6/22/18 8,823,530 $17.00 $150,000,010

electroCore, Inc. NasdaqGS:ECOR $15.00 6/22/18 5,200,000 $15.00 $78,000,000

Neon Therapeutics, Inc. NasdaqGS:NTGN $16.00 6/27/18 6,250,000 $16.00 $100,000,000

Neuronetics, Inc. NasdaqGM:STIM $15.00 6/28/18 5,500,000 $17.00 $93,500,000

Forty Seven, Inc. NasdaqGS:FTSV $15.00 6/28/18 7,035,000 $16.00 $112,560,000

Tricida, Inc. NasdaqGS:TCDA $17.00 6/28/18 11,700,000 $19.00 $222,300,000

Translate Bio, Inc. NasdaqGS:TBIO $13.00 6/28/18 9,350,000 $13.00 $121,550,000

Page 19: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

18KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

1 The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market or those with proceeds of less than $10 million.2 Rows shaded in blue represent International Life Sciences IPOs.3 Final share numbers do not reflect any exercise of the over-allotment option.

Life Sciences Offerings (continued)

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Crinetics Pharmaceuticals, Inc. NasdaqGS:CRNX $16.00 7/18/18 6,000,000 $17.00 $102,000,000

Rubius Therapeutics, Inc. NasdaqGS:RUBY $21.00 7/18/18 10,483,000 $23.00 $241,109,000

Allakos Inc. NasdaqGS:ALLK $16.00 7/19/18 7,133,333 $18.00 $128,399,994

Constellation Pharmaceuticals, Inc. NasdaqGS:CNST $15.00 7/19/18 4,000,000 $15.00 $60,000,000

Tilray, Inc. NasdaqGS:TLRY $15.00 7/19/18 9,000,000 $17.00 $153,000,000

Replimune Group, Inc. NasdaqGS:REPL $15.00 7/20/18 6,700,000 $15.00 $100,500,000

Aquestive Therapeutics, Inc. NasdaqGM:AQST $15.00 7/25/18 4,500,000 $15.00 $67,500,000

Vaccinex, Inc. NasdaqGM:VCNX $13.50 8/9/18 3,333,334 $12.00 $40,000,008

Principia Biopharma Inc. NasdaqGS:PRNB $16.00 9/14/18 6,250,000 $17.00 $106,250,000

Elanco Animal Health Incorporated NYSE:ELAN $21.50 9/20/18 62,900,000 $24.00 $1,509,600,000

Y-mAbs Therapeutics, Inc. NasdaqGS:YMAB $15.00 9/21/18 6,000,000 $16.00 $96,000,000

Entasis Therapeutics Holdings Inc. NasdaqGM:ETTX $17.00 9/26/18 5,000,000 $15.00 $75,000,000

Arvinas Holding Company, LLC NasdaqGS:ARVN $15.00 9/27/18 7,500,000 $16.00 $120,000,000

Ra Medical Systems, Inc. NYSE:RMED $15.00 9/27/18 3,900,000 $17.00 $66,300,000

Sutro Biopharma, Inc. NasdaqGM:STRO $15.00 9/27/18 5,667,000 $15.00 $85,005,000

Urovant Sciences Ltd. NasdaqGS:UROV $15.00 9/27/18 10,000,000 $14.00 $140,000,000

H2 20181, 2

COMPANY NAME / TICKER SYMBOLRED HERRING

MIDPOINTPRICED

FINAL SHARES3

FINAL PRICING

FINAL DEAL SIZE

Gritstone Oncology, Inc. NasdaqGS:GRTS $14.00 9/28/18 6,666,667 $15.00 $100,000,005

Guardant Health, Inc. NasdaqGS:GH $16.00 10/4/18 12,500,000 $19.00 $237,500,000

Kodiak Sciences Inc. NasdaqGM:KOD $14.00 10/4/18 9,000,000 $10.00 $90,000,000

Allogene Therapeutics, Inc. NasdaqGS:ALLO $17.00 10/11/18 18,000,000 $18.00 $324,000,000

Equillium, Inc. NasdaqGM:EQ $15.00 10/12/18 4,670,000 $14.00 $65,380,000

SI-BONE, Inc. NasdaqGM:SIBN $14.00 10/17/18 7,200,000 $15.00 $108,000,000

Osmotica Pharmaceuticals plc NasdaqGS:OSMT $15.00 10/18/18 6,650,000 $7.00 $46,550,000

PhaseBio Pharmaceuticals, Inc. NasdaqGM:PHAS $13.00 10/18/18 9,200,000 $5.00 $46,000,000

LogicBio Therapeutics, Inc. NasdaqGM:LOGC $13.00 10/19/18 7,000,000 $10.00 $70,000,000

Gamida Cell Ltd. NasdaqGM:GMDA $14.00 10/26/18 6,250,000 $8.00 $50,000,000

Axonics Modulation Technologies, Inc. NasdaqGS:AXNX $15.00 10/31/18 8,000,000 $15.00 $120,000,000

Orchard Therapeutics plc NasdaqGS:ORTX $15.00 10/31/18 14,285,715 $14.00 $200,000,010

Twist Bioscience Corporation NasdaqGS:TWST $15.00 10/31/18 5,000,000 $14.00 $70,000,000

Eton Pharmaceuticals, Inc. NasdaqGM:ETON $6.00 11/13/18 3,600,000 $6.00 $21,600,000

Vapotherm, Inc. NYSE:VAPO $15.00 11/14/18 4,000,000 $14.00 $56,000,000

Taiwan Liposome Company, Ltd. NasdaqGM:TLC $7.46 11/21/18 3,750,000 $5.80 $21,750,000

Moderna, Inc. NasdaqGS:MRNA $23.00 12/7/18 26,275,993 $23.00 $604,347,839

Synthorx, Inc. NasdaqGS:THOR $11.00 12/7/18 11,912,727 $11.00 $131,039,997

Page 20: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

19KEY METRICS FOR TECHNOLOGY AND LIFE SCIENCES INITIAL PUBLIC OFFERINGS 2018 FULL YEAR

MethodologyData points used in the compilation and analysis of this information were gathered using a variety of resources, including, but not limited to, filings made with the U.S. Securities and Exchange Commission, lock-up expiration dates from EDGAR Online IPO Deal Data and daily stock-trading price data. The exact dates upon which lock-ups expired were estimated based on disclosure in the prospectuses and may further be approximate in the case of dates falling on holidays or weekends. Companies were assigned to the Technology and Life Sciences sectors based on SIC codes and other company descriptors.

The information in the graphs and tables regarding offering size does not reflect any exercise of the underwriters’ over-allotment, or green shoe, option. Information at the red herring stage is based on the midpoint of the range and on the number of shares offered, as reflected on the cover page of the first preliminary, or red herring, prospectus. The information regarding the actual offering size is based on the price to the public and the aggregate number of shares offered, as reflected on the cover page of the final prospectus. The closing price on the first day of trading is the closing price on the company’s primary exchange on the first day of public trading of the shares following the pricing of the offering.

DisclaimerThe preparation of the information contained herein involves assumptions, compilations and analysis, and there can be no assurance that the information provided herein is error-free. Neither Fenwick & West LLP nor any of its partners, associates, staff or agents shall have any liability for any information contained herein, including any errors or incompleteness. The contents of this report are not intended, and should not be considered, as legal advice or opinion.

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© 2019 Fenwick & West LLP

Page 21: fenwick · 2019. 8. 27. · Existing investors bought into 15 of the 23 tech IPOs in the second half of the year. Approximately 65% of life sciences deals saw insiders purchasing

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