US IPO Week Ahead: Cloudera leads pack of 8 deals

A whopping eight deals are on the calendar for the week ahead after a flurry of launches hit Monday.

The month's 11 IPOs already make it the most active year-to-date, but if all eight April deals on the US IPO calendar price, April would be busier than all but one month (Oct 2016; 19 IPOs) in the past seven quarters. That should continue, as deal flow typically heats up in the summer. Likewise, Friday, April 28 could be the most active day since June 2015 with five companies going public.

IPO Calendar				All
U.S. Calendar
Issuer Business	Symbol Exchange	Deal Size($m) Market Cap($m)	Price Range Shares Filed	Pricing Date	Top 2 Bookrunners
Cloudera Palo Alto, CA	CLDR NYSE	$195 $2,164	$12.00 - 14.00 15,000,000	Wk of 4/24	Morgan Stanley, J.P. Morgan
Provides a Hadoop-based data management platform to large enterprises.
Carvana Phoenix, AZ	CVNA NYSE	$225 $2,068	$14.00 - 16.00 15,000,000	Wk of 4/24	Wells Fargo, BofA Merrill
Online used car retailer with locations featuring car "vending machines".
Floor & Decor Holdings Smyrna, GA	FND NYSE	$150 $1,709	$16.00 - 18.00 8,823,500	Wk of 4/24	BofA Merrill, Barclays
Hard surface flooring and accessories retailer with 72 warehouse-format stores.
Emerald Expositions Events San Juan Capistrano, CA	EEX NYSE	$295 $1,430	$18.00 - 20.00 15,500,000	Wk of 4/24	BofA Merrill, Barclays
Largest US operator of B2B trade shows and exhibitions.
NCS Multistage Holdings Houston, TX	NCSM Nasdaq	$157 $784	$15.00 - 18.00 9,500,000	Wk of 4/24	Credit Suisse, Citi
Provides well completion equipment and services in Canada and the US.
Zymeworks Canada	ZYME NYSE	$65 $361	$13.00 - 16.00 4,500,000	Wk of 4/24	Citi, Barclays
Early-stage biotech developing antibodies that target HER2 tumors.
China Rapid Finance China	XRF NYSE	$105 $586	$9.50 - 11.50 10,000,000	Wk of 4/24	Morgan Stanley, Credit Suisse
Operates an online marketplace in China for small peer-to-peer loans.
Verona Pharma United Kingdom	VRNA Nasdaq	$75 $163	$13.49 - 13.49 5,560,202	Wk of 4/24	Jefferies, Stifel
Developing inhaled treatments for respiratory diseases.

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Cloudera (CLDR), which provides a Hadoop-based data management platform, set terms for a $195 million IPO at a diluted market cap of $2.2 billion, down from the $4.1 billion valuation Intel gave it in mid-2014 (Intel plans to buy 10% of IPO shares). With soaring losses and rapid growth, Cloudera is set to be the year's fourth tech "unicorn" to go public; the prior three priced above the range and popped 38-46%.

Carvana (CVNA), a high-growth online used car retailer, plans to raise $225 million at a market cap of $2.1 billion. Owned by its founder and CEO (investing $20 million on the IPO), Carvana achieved a 2-year sales CAGR of 196% to reach 2016 sales of $365 million (5% gross margin). Operating losses also ballooned to $90 million in the last year.

Floor & Decor (FND), a fast-growing warehouse-style retailer of hard flooring, set terms to raise $150 million at a market cap of $1.7 billion. LBO'd by Ares and Freeman Spogli, FND's 2016 revenue rose 34% to $1.1 billion, driven by 19% comp growth and new stores. The stock prices of peers Restoration Hardware (RH) and Lumber Liquidators (LL) appeared to find a floor in 2016, and are up 51% and 39%, respectively, year-to-date.

Emerald Expositions Events (EEX) plans to raise $295 million (33% insider selling) at a market cap of $1.4 billion. LBO'd by Onex in 2013, the company has made a string of acquisitions to become the dominant US operator of B2B trade shows. It grew sales by 6%, about half organic, to $324 million in 2016, with adj. EBITDA of $152 million (47% margin).

NCS Multistage Holdings (NCSM) filed terms at a range of $15-$18 as it seeks $157 million at a market value of $783 million. Backed by Advent, the provider of well completion equipment and services saw revenue decline 14% to $98 million in 2016. With no post-IPO debt, it is poised to benefit from higher spending on energy production in the US and Canada, similar to recent oil & gas IPOs, this week's IPO Select Energy, and a number of recent energy filers.

China Rapid Finance (XRF), which operates an online marketplace in China for peer-to-peer loans, plans to raise $105 million at a market cap of $586 million. Net revenue ($56 million) and net income (-$33 million) declined in each of the past two years, even as loan volume tripled. Close peer Yirendai (YRD) is up 139% from its December 2015 IPO.

Zymeworks (ZYME), an early-stage biotech developing antibodies for cancer, is looking to raise $65 million by offering 4.5 million shares at a range of $13-$16, with a proposed market cap of $361 million. Insiders, including Eli Lilly and Celgene, plan to invest $42 million (64% of shares) on the offering. Four biotechs have IPO'd in 2017, and three are up 30% or more. The Vancouver-based company will list on the NYSE and the TSX.

Verona Pharma (VRNA) filed terms on Tuesday for a US offering on the Nasdaq. Currently listed on London's AIM market (VRP), the Novo-backed biotech plans to raise $75 million (31% from insiders) at a market cap of $163 million, with post-IPO cash of $116 million.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 12.0% year-to-date, more than double the S&P 500's 4.9%. 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 9.6% year-to-date, while the ACWX is up 8.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Covestro and Worldpay. To find out if this is the best ETF for you, visit our IPO Investing page.