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IPO Roundup: Quartet of companies begin trading Friday; Phoenix Tree Holdings stumbles out of the gate

The first IPO week of 2020 featured three Chinese companies listing on US exchanges

Colorfully written IPO with arrows pointing to the letters
Phoenix Tree Holdings Ltd, a Beijing company that renovates and subleases apartments, downsized its IPO and priced below its range

Four companies priced Thursday night and are looking to end the week with a strong first day of trading.

Phoenix Tree Holdings Ltd (NYSE:DNK), a Beijing company that renovates and subleases apartments, brought in $130 million in what ended up being a downsized IPO that priced below its range.

The company offered 9.6 million shares, down from its expected 10.6 million, at a price of $13.50. It’s original projected range was between $14.50 and $16.50 per share.

Since its founding in 2015, the company has grown the number of apartment units it operates from 2,434 in December of that year to 406,746 at the end of September 2019.

Shares opened at $13.50 and slipped to $13.02, 3.6% below its IPO price.

I-Mab Biopharma Co Ltd (NASDAQ:IMAB), a late-stage cancer biotechnology company based in Shanghai, offered 7.4 million shares at $14 per share en route to a $104 million IPO. 

That offer fell within its projected range of $12 to $15. 

Founded in 2014, the company has developed a drug pipeline of more than 10 clinical and preclinical assets focused on treating diseases with significant unmet medical needs, namely cancers and autoimmune disorders.

Trading opened at $14.75 before dropping lower to $12.80, 8.6% below the IPO price.

Velocity Financial Inc (NYSE:VEL), a mortgage lender based in Westlake Village, California, raised $94 million offering 7.3 million shares at $13 per share. 

The offer price came in below the company’s expected range of $14 to $16.

Founded in 2004, Velocity originates and manages investor loans across a nationwide network of independent mortgage brokers.

The stock debuted higher at $13.85 but dipped slightly to $13.75, 5.8% above its IPO price.

Lizhi Inc (NASDAQ:LIZI), an interactive podcast platform for user-generated content in China, raised $45 million in its IPO. 

The company offered 4.1 million shares at $11 per share, the low end of its $11 to $13 range.

Lizhi, based in Guangzhou, claims to be the second-largest audio entertainment platform in the country by monthly average users for the nine months ended September 30.

Shares started trading at $11.03 and rose to $11.50, 4.6% above the IPO price.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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