Five IPOs are set to raise a combined $1.5 billion in the next week. Each company in this diverse group is targeting raising over $100 million.
Two transportation companies are marketing the largest deals: Brazilian airline Azul is set to raise $478 million as the first airline with a US IPO since 2014 and family-owned US trucker Schneider is looking for $550 million. Another high-growth software company, Okta, is looking to continue a resurgence in tech IPOs. Elevate Credit is hoping more lenient regulation will allow it to complete this iteration of its IPO attempt. Hess Midstream Partners is one of just a few to launch from a wave of energy filings this year.
IPO Calendar | |||||
U.S. Calendar | |||||
Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Pricing Date |
Top 2 Bookrunners |
Hess Midstream Partners LP Houston, TX |
HESM NYSE |
$250 $1,113 |
$19.00 - 21.00 12,500,000 |
Wk of 4/3 |
Goldman Sachs, Morgan Stanley |
MLP formed by Hess and GIP to own gathering/processing assets in the Bakken. | |||||
Elevate Credit Fort Worth, TX |
ELVT NYSE |
$100 $485 |
$12.00 - 14.00 7,700,000 |
Wk of 4/3 |
UBS Investment, Credit Suisse |
Online provider of loans and lines of credits to non-prime consumers. | |||||
Schneider National Green Bay, WI |
SNDR NYSE |
$550 $3,297 |
$18.00 - 20.00 28,947,000 |
Wk of 4/3 |
Morgan Stanley, UBS Investment |
Second largest US trucking company offering truckload, intermodal and logistics. | |||||
Azul Brazil |
AZUL NYSE |
$478 $2,262 |
$18.02 - 21.81 24,000,000 |
Wk of 4/3 |
Citi, Itau BBA |
Brazil's third-largest airline, founded by JetBlue founder David Neeleman. | |||||
Okta San Francisco, CA |
OKTA Nasdaq |
$154 $1,566 |
$13.00 - 15.00 11,000,000 |
Wk of 4/3 |
Goldman Sachs, J.P. Morgan |
Provides on-demand identity and access management for enterprises. |
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Hess Midstream Partners LP (HESM), which holds GP ownership of the Hess and GIP Bakken natural gas JV, is looking to raise $250 million, after reviving a filing from 2014.
Elevate Credit (ELVT), a sub-prime loan provider, is looking to raise $100 million after postponing a deal in January 2016. It is hoping to benefit from a US administration that favors less regulation. Investors may be put off by the fact that it has not been able to be profitable and is leveraged with expensive debt of its own.
Schneider National (SNDR), a leading US trucker, is looking to raise $550 million and is offering investors strong EBITDA growth (13% 3-year CAGR), but is operating in a cyclical trough that has not yet rebounded.
Azul (AZUL), Brazil's third largest airline, is raising $478 million between the US and Brazil. It has proved to be an effective operator growing into exclusive markets with leading margins. However, it is highly levered and significantly exposed to currency effects in a Brazilian economy that has not yet recovered from a recession.
Okta (OKTA), a high-growth access management software provider, is seeking $154 million as it hopes to join the list of well-received tech IPOs. Investors will decide if its strong momentum (80% revenue growth) and leading status in a $5 billion market are worth its high cash burn as it faces increasing competition.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 11.8% year-to-date, while the S&P 500 is up 5.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (RACE) and TransUnion (TRU). The Renaissance International IPO Index is up 8.0% year-to-date, while the ACWX is up 8.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Covestro and ABN Amro. To find out if this is the best ETF for you, visit our IPO Investing page.