There are six deals on the calendar for the week ahead, after Azul was cleared by regulators to resume its IPO. After not having any deals in the first two month of the year, two tech IPOs this week should make the sector the most active year to date.
We expect launches to be light next week with the holiday Friday, but activity should pick up at the end of April. Recent filers such as Cloudera (CLDR), China Rapid Finance (XRF) and Carvana (CNVA) will be eligible to begin marketing the week of April 17.
| IPO Calendar | |||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Pricing Date |
Top 3 Bookrunners |
| Yext New York, NY |
YEXT NYSE |
$95 $905 |
$8 - 10 10,500,000 |
Wk of 4/10 |
Morgan Stanley, J.P. Morgan, RBC Capital |
| Provides a platform that allows businesses to sync local listings across the internet. | |||||
| Netshoes Brazil |
NETS NYSE |
$157 $590 |
$18 - 20 8,250,000 |
Wk of 4/10 |
Goldman Sachs, J.P. Morgan, Bradesco BBI |
| Leading shoe, fashion and beauty online retailer in Brazil. | |||||
| Cadence Bancorporation Houston, TX |
CADE NYSE |
$150 $1,663 |
$19 - 21 7,500,000 |
Wk of 4/10 |
Goldman Sachs, J.P. Morgan, Sandler O'Neill |
| Commercial bank with 66 locations in Texas and the Southeast. | |||||
| Tocagen San Diego, CA |
TOCA Nasdaq |
$80 $189 |
$10 - 12 7,250,000 |
Wk of 4/10 |
Leerink Partners, Evercore ISI, Stifel |
| Developing gene therapies for the treatment of brain cancer. | |||||
| Warrior Met Coal Brookwood, AL |
HCC NYSE |
$300 $963 |
$17 - 19 16,666,667 |
Wk of 4/10 |
Credit Suisse, Citi, Morgan Stanley |
| Metallurgical coal producer and exporter. | |||||
| Azul Brazil |
Azul NYSE |
$478 $2,262 |
$18.02 - 21.81 24,000,000 |
Wk of 4/10 |
Citi, Itau BBA, Deutsche Bank |
| Brazil's third-largest airline, founded by JetBlue founder David Neeleman. |
|||||
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Yext (YEXT), the latest of a wave of high-growth and high-loss software businesses, is seeking $95 million. Yext is backed by prominent VCs and grew sales 38% to $124 million in FY17. The company claims that its cloud-based platform, the Yext Knowledge Engine, gives its customers control over their digital presence, with access to Listings, Pages, Reviews and other features.
Netshoes (NETS), a Brazilian online retailer, is seeking $157 million. The company has yet to produce positive EBITDA, but as one of Brazil's leading ecommerce companies, it hopes to grow in a large underpenetrated market.
Cadence Bancorporation (CADE), a Texas-based bank with $10 billion in assets, is raising $150 million. Energy exposure caused net income to decline in 2015, but it has since recovered. It is the first US bank to go public since September 2016.
Tocagen (TOCA), a biotech developing gene therapies for brain cancer, is looking to raise $87 million to continue its clinical trials. It completed enrollment of a Phase II trial for its lead candidate in February 2017.
Warrior Met Coal (HCC), which produces and exports metallurgical coal, is set to raise $300 million. It will be the second public pure-play met coal producer after January IPO Ramaco Resources (METC). Coal prices have shown positive signs recently, which could help Warrior.
Azul (AZUL), the third-largest Brazilian airline, has cleared a regulator suspension and is now set to price the week of April 10.
Vantage Energy Acquisition (VEACU), a blank check company formed by management of Vantage Energy (VEI), expects to raise $400 million next week, after moving the deal up one day. While we do not count SPACs in our IPO stats, we note that SPAC activity has picked up in the first quarter with six deals raising $2.2 billion.
Quiet period expirations
Underwriter research is expected for enterprise data integrator MuleSoft (MULE, +37%), high-end outerwear maker Canada Goose (GOOS, +33%), consumer packaging manufacturer Ardagh (ARD, +15%) and hydraulic fracturer ProPetro (PUMP, -1%) next week.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 10.0% year-to-date, while the S&P 500 is up 5.2%. 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 9.0% year-to-date, while the ACWX is up 7.9%. 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. To find out if this is the best ETF for you, visit our IPO Investing page.
