Following the busiest week of 2017, the week ahead will be another record breaker with 12 IPOs scheduled to raise a combined $2.1 billion. The week will be led by automated email platform SendGrid and cybersecurity provider SailPoint Technologies. Other notable deals include online personal-styling service Stitch Fix, Chinese credit platform Jianpu Technology and specialty chemical producer MPM Holdings.
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| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Bookrunners | |
| Workspace Property Trust Horsham, PA |
WSPT NYSE |
$527 $1,038 |
$12.00 - $15.00 39,000,000 |
Goldman Sachs, J.P. Morgan, BofA Merrill, 6 more... |
|
| Recently formed REIT focused on suburban office properties. | |||||
| SendGrid Denver, CO |
SEND NYSE |
$112 $724 |
$13.50 - $15.50 7,700,000 |
Morgan Stanley, J.P. Morgan |
|
| Provides a cloud-based platform for emails and marketing campaigns. | |||||
| Arsanis Waltham, MA |
ASNS Nasdaq |
$50 $186 |
$15.00 - $17.00 3,125,000 |
Citi, Cowen & Company, Piper Jaffray |
|
| Developing antibodies designed to prevent serious infectious diseases. | |||||
| Jianpu Technology China |
JT NYSE |
$214 $1,654 |
$8.50 - $10.50 22,500,000 |
Goldman Sachs, Morgan Stanley, J.P. Morgan |
|
| Leading Chinese online consumer loan and credit platform. | |||||
| MPM Holdings Waterford, NY |
MPMH NYSE |
$350 $1,443 |
$23.00 - $25.00 14,583,333 |
J.P. Morgan, Goldman Sachs, Credit Suisse, 4 more... |
|
| Restructured global producer of specialty silicones and other chemical additives. | |||||
| Bluegreen Vacations Boca Raton, FL |
BXG NYSE |
$110 $1,270 |
$16.00 - $18.00 6,198,648 |
Stifel, Credit Suisse, BofA Merrill, 1 more... |
|
| Sells timeshares and manages resorts in the US. | |||||
| Cañuelas Mill Argentina |
MOLC NYSE |
$302 $926 |
$14.00 - $17.00 19,500,000 |
J.P. Morgan, UBS Investment, HSBC Corporation, 1 more... |
|
| Leading Argentine food company offering branded flour, oil and biscuits. | |||||
| SailPoint Technologies Austin, TX |
SAIL NYSE |
$200 $926 |
$9.00 - $11.00 20,000,000 |
Morgan Stanley, Citi, Jefferies, 1 more... |
|
| Provides identity governance software to enterprises. | |||||
| scPharmaceuticals Burlington, MA |
SCPH Nasdaq |
$96 $276 |
$14.00 - $16.00 6,400,000 |
Jefferies, Leerink Partners, BMO Capital |
|
| Commercializing an injectable version of an intravenous drug for heart failure. | |||||
| Stitch Fix San Fancisco, CA |
SFIX Nasdaq |
$190 $1,953 |
$18.00 - $20.00 10,000,000 |
Goldman Sachs, J.P. Morgan, Barclays, 1 more... |
|
| Online personal-styling service and clothing retailer. | |||||
| Level Brands Charlotte, NC |
LEVB NYSE |
$10 $45 |
$6.00 - $6.00 1,700,000 |
Joseph Gunnar | |
| Launching consumer lifestyle brands inspired by Kathy Ireland. | |||||
VC-Backed High Growth
Founder led and backed by Baseline and Benchmark, Stitch Fix (SFIX) has generated over $1 billion in sales through its on-demand and subscription clothing offerings. However, customer and revenue growth slowed significantly in FY17 and plans for increased marketing spend and further expansion into lower-margin lines will pressure margins. We note that its established apparel e-commerce peers have not traded well over the last three months, and the company has experienced recent management turnover.
Backed by Foundry and Bessemer Venture Partners, SendGrid (SEND) is a play on the increasing importance of effective B2C email communication. The company's self-service sales model has enabled it to expand margins and reach profitability on a revenue base of under $100 million; however, a ramp-up in S&M will likely hold back near-term margins.
Acquired by Thoma Bravo in 2014, founder-led SailPoint (SAIL) offers a leading, next-generation identity and access management solution to large enterprises. Unlike many recent tech IPOs, SailPoint has grown rapidly at 30%+ while maintaining profitability. The company stands to benefit from the rising risk of security breaches and growing compliance requirements.
Chinese & Argentine ADRs
Chinese wealth management platform Jianpu Technology (JT) will be the 13th Chinese ADR IPO this year, following three Chinese IPOs last week: after-school math tutoring services provider Four Seasons (FEDU: +5.3% from IPO price), mobile search engine Sogou (SOGO: +6.5%) and peer-to-peer online platform PPDAI Group (PPDF: +0.6%).
Leading Argentine food company Cañuelas Mill (MOLC) will be the third Argentine ADR IPO in the 2H17, following leading cement producer Loma Negra (LOMA: +12.2% from 10/31/17 IPO) and Latin American online travel agency Despegar.com (DESP: +10.2% from 9/19/17 IPO), taking advantage of positive investor sentiment toward the country under a new market friendly government. The company plans to raise $302 million (50% insider selling) to reduce its high debt load and find liquidity for the Navilli family owners.
Specialty Real Estate
Led by former Mack-Cali (NYSE: CLI) executives, Workspace Property Trust (WSPT) is a recently formed pure-play suburban office REIT. Management believes it will benefit from industry fundamentals like millennials moving to the suburbs, and sees a large consolidation opportunity being the only publicly-traded REIT to focus exclusively on suburban office.
Taken private by BBX Capital in 2013, Bluegreen Vacations (BXG) is a leading timeshare company that caters to the underpenetrated millennial/gen-x demographic through its flexible points-based platform. The company has been shifting towards a capital-light model by forming relationships with third-party developers and selling timeshares on commission and earning management fees for operating their resorts. That said, the company is subject to several outstanding legal issues with existing owners and employees.
2 Biotechs, 2 Micro-Caps
Injectable drug developer scPharmaceuticals (SCPH) plans to raise $96 million. Its lead product candidate, Furoscix, is a subcutaneous formulation of furosemide delivered via a patented infusor to treat worsening heart failure in an outpatient setting. The pre-revenue company filed an NDA for Furoscix with the FDA in August 2017 and has also filed INDs to deliver injectable versions of IV-delivered antibiotics.
OrbiMed-backed Arsanis (ASNS) plans to raise $50 million; insiders intend to purchase up to $20 million (40%) of the IPO. Its lead product candidate, ASN100, is a monoclonal antibody in Phase 2 trials for the prevention of Staphylococcus aureus pneumonia in high-risk, mechanically ventilated patients.
QTCB-listed AMERI Holdings (AMRH) is seeking to raise $12 million in a Nasdaq uplisting; it initially planned to price last week. The outsourced IT services provider booked $47 million in sales during the LTM.
Level Brands (LEVB) plans to raise $10 million in a best-efforts Reg A+ IPO. The company booked $3.6 million in sales during the LTM. It is excluded from RC's IPO stats.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 32.1% year-to-date, ahead of the S&P 500, which is up 15.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include First Data (FDC) and Square (SQ). The Renaissance International IPO Index is up 26.4% year-to-date, while the ACWX is up 22.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Japan Post and ABN AMRO Group. To find out if this is the best ETF for you, visit our IPO Investing page.
