It's a slow start to the typically-active month of June, but that should change soon. Two companies are targeting a combined $158 million in the week ahead. Deals include Taiwan-based live streaming company M17 Entertainment and gene therapy biotech MeiraGTx.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| M17 Entertainment (YQ) Taipei, Taiwan |
$83M $412M |
$10 - $12 7,511,000 |
Citi Deutsche Bank |
| Taiwan-based live music streaming platform and dating app. | |||
| MeiraGTx (MGTX) New York, NY |
$75M $423M |
$14 - $16 5,000,000 |
BofA ML Barclays |
| Developing gene therapies for disorders of the eye and salivary gland. | |||
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M17 Entertainment (YQ), which operates a live streaming platform in developed Asia, aims to raise $83 million at a $412 million valuation. The Taiwan-based company grew revenue 223% y/y to $38 million in the 1Q18 and operates in the fast-growing pure-play live streaming market, which is estimated to expand at a 47% CAGR through 2022. While losses are high due to low gross margins and high marketing costs, Asian streaming and internet peers have traded well recently. Recent IPOs HUYA (HUYA), iQIYI (IQ) and Bilibili (BILI) are up an average of more than 80% from their offer prices.
MeiraGTx (MGTX), which is developing gene therapies for eye and salivary gland disorders, is targeting $75 million at a valuation of $423 million. The biotech has three candidates in Phase 1/2 trials and expects another to enter trials in early 2019. If the company is able to replicate the safety and efficacy of Spark Therapeutics’ (ONCE) recently-approved drug Luxturna, it will be able to begin pivotal trials by late 2019. While MeiraGTx is still early stage and will require additional funding to reach commercialization, the deal is supported by strong insider buying. Backed by 2016 IPO Kadmon (KDMN), insiders have indicated on $40 million (53% of the deal) on the IPO.
Launches expected in early June
As June kicks off with a full pipeline, there are several notable deals that could launch in the week ahead. Potential launches include cloud-based software provider Avalara (AVLR), wealth manager Focus Financial Partners (FOCS), power plant maintenance provider Charah Solutions (CHRA), Chinese tutoring service Puxin (NEW), BJ’s Wholesale Club (BJ) and a number of biotechs.
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