Three IPOs are expected in the final major week of 2017. The week will be led by broadband cable vendor Casa Systems and commercial real estate brokerage and advisory firm Newmark Group.
Street research is expected for nine companies in the upcoming week, including e-mail marketing platform provider SendGrid (SEND: +34% from IPO price) and Chinese online consumer loan platform Jianpu Technology (JT: -25%) on Monday; online clothing service Stitch Fix (SFIX: +57%), cybersecurity provider SailPoint Technologies (SAIL: +29%) and timeshare company Bluegreen Vacations (BXG: +14%) on Tuesday.
| US IPO Calendar | View Global Calendar | ||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Bookrunners | |
| Casa Systems Andover, MA |
CASA Nasdaq |
$134 $1,512 |
$15 - $17 8,400,000 |
Morgan Stanley, Barclays |
|
| A leading provider of CCAP products to broadband network operators. | |||||
| Adial Pharmaceuticals Charlottesville, VA |
ADIL Nasdaq |
$14 $57 |
$9 - 11 1,400,000 |
Joseph Gunnar | |
| Developing a targeted therapy for alcohol use disorder based on an approved drug. | |||||
| Newmark Group New York, NY |
NMRK Nasdaq |
$615 $4,879 |
$19 - 22 31,250,000 |
Goldman Sachs, BofA Merrill, Citi, 5 more... |
|
| Commercial real estate brokerage and advisory firm carved out of BGC Partners. | |||||
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Backed by Summit Partners, founder-led Casa Systems (CASA) is looking to raise $134 million. The company has emerged as the #2 player in the $2 billion converged cable access platform (CCAP) market, holding its own against large players like ARRIS (Nasdaq: ARRS) and Cisco (Nasdaq: CSCO) thanks to a history of being first-to-market with next-generation solutions. It expects a meaningful uplift to growth near-term, driven by cable providers' shift to the new DOCSIS 3.1 technology to support exploding bandwidth demand. However, key concerns include high leverage and high customer concentration, with its top two customers comprising 47% of YTD sales.
Newmark Group (NMRK), which provides a full suite of commercial real estate services, allowing for significant cross-selling opportunities, plans to raise $615 million. Formerly, Newmark Grubb Knight Frank, Newmark was acquired by Cantor Fitzgerald's BGC Partners (Nasdaq: BGCP) in 2011. Management believes it differentiates itself from peers including Jones Lang LaSalle (NYSE: JLL) and CBRE (NYSE: CBG) through its partnership structure, which allows it to attract talented brokers and salespeople. The company has made 35 acquisitions since 2011 to expand its capabilities and geographical reach (now in 41 of the top 50 MSAs), which it expects to resume post-IPO.
Adial Pharmaceuticals (ADIL), a biotech developing genetically-targeted treatments for alcohol use disorder (AUD), is looking to raise $14 million at a $57 million market cap. The company's lead investigational drug, AD04, targets AUD through a proprietary tablet and is expected to initiate Phase 3 trials by the end of 2018. It has also developed a simple blood test to screen for patients that are genetically predisposed to benefit from the treatment (approximately 35% of patients).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 34.5% year-to-date, ahead of the S&P 500, which is up 21.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Square (SQ) and Ferrari (RACE). The Renaissance International IPO Index is up 29.7% year-to-date, while the ACWX is up 25.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Japan Post and Covestro.
