Two micro-cap IPOs are on the IPO calendar for the week ahead. Both plan to raise less than $100 million.
The decline in filing activity during the past month should cause a slower-than-expected June, roughly in line with May. However, low-cost airline Frontier Group (FRNT) and cable company Altice (ATUS) could soon launch $500+ million IPOs. And initial filings have already begun to pick up, suggesting an active end-of-month heading into July. High-growth meal kit unicorn Blue Apron (APRN) and storage provider Tintri (TNTR) joined the IPO pipeline this past week and could price before month-end.
| US IPO Calendar | ||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Top Bookrunners |
| ShotSpotter Newark, CA |
SSTI Nasdaq |
$31 $118 |
$10 - 12 2,800,000 |
Roth Capital |
| Provides law enforcement with a sensor-based service for detecting gunshots. | ||||
| Plymouth Industrial REIT Boston, MA |
PLYM NYSE MKT |
$75 $89 |
$19 - 21 3,750,000 |
D.A. Davidson BB&T Capital Oppenheimer & Co. |
| REIT owning interests in 20 industrial buildings in the Midwest and Eastern US. | ||||
Plymouth stock: Industrial REIT IPO offers 7.5% yield
Plymouth Industrial REIT (PLYM) plans to raise $75 million at a market cap of $89 million. The REIT will own 20 properties, mainly warehouse, manufacturing and distribution facilities in Illinois and Ohio and five other states. Its portfolio is 98% leased to 37 different tenants, with an annualized rent of $14 million. Plymouth plans to offer an annualized dividend of $1.50 per share, a yield of 7.5% at the $20 midpoint.
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Lawyers, underwriters, guns and money: ShotSpotter aims for a $31 million IPO
ShotSpotter (SSTI) is looking to raise $31 million to pay down debt and grow at a market cap of $118 million. Its subscription-based gunshot detection service has gained traction with police departments in major cities like New York and Chicago, causing sales to rise 53% to $4.6 million in the 1Q17. However, the small and unprofitable company requires relatively high capex, and customer concentration is a key risk.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 23.7% year-to-date, far ahead of the S&P 500, up 8.9%. 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 16.4% year-to-date, while the ACWX is up 15.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Worldpay and ABN Amro. To find out if this is the best ETF for you, visit our IPO Investing page.
