IPO Weekly: Will the Market Pick Up in Again in 2020?

The only IPO to price last week was the oncology-focused biotech Keros Therapeutics (NASDAQ: KROS), settling into a sparse market for companies to enter public investing. As expected, Keros beat the coronavirus market and finished its first week of trading ahead 35%. The biotech had priced its upsized IPO at the higher end of its estimated share pricing range, thus raising $96 million from 6 million offered shares at $16 each.

Despite last week's positive IPO debut, many hopeful companies are still afraid of the coronavirus-induced stock market bear and lack of investor optimism. For the past few sessions, the stocks have maintained a relative balance, but many analysts still think its too soon to tell if the market has bottomed yet.

Nevertheless, Renaissance IPO ETF (NYSE: IPO), which tracks U.S. stocks that recently publicly listed, is up over 10% for the month, signaling that the IPO market may be pushing towards a more investment friendly environment for the second half of 2020.

With that in mind, here are some likely IPOs for the first half of 2020, given the coronavirus market circumstances:

Ayala Pharmaceuticals

The pharmaceutical maker filed to raise a $50 million IPO on the Nasdaq in early March. The company focuses on treatments for rare and aggressive cancers. The IPO is underwritten by Citigroup (NYSE: C) and Jefferies Financial (NYSE: JEF).

Lyra Therapeutics

The biotech has also filed to raise an estimated $58 million IPO in early March. The company is a Phase 2 biotech that focuses on ear, nose, and throat diseases. The IPO is underwritten by Bank of America (NYSE: BAC) and Jefferies.

NLS Pharmaceuticals

This drug company filed to raise a $40 million IPO in late February. The company focuses on treatments for narcolepsy and ADHD. Maxim Group LLC is the underwriter for the potential stock.

Oric Pharmaceuticals

The pharmaceutical company filed to raise a $100 million IPO in early March, making it one of the larger recent IPOs. The company focuses on cancer treatments and is underwritten by Citigroup and JPMorgan (NYSE: JPM).