The week ahead will be the busiest week of the year so far for IPO pricings. Getting out ahead of the July slowdown, this record-setting, 12-IPO week is led by two-high growth, high-loss tech companies (Domo and Uxin) and two LBOs (BJ’s and Brightview). Another wave of biotech IPOs is hitting this week, with four $100+ million deals.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Neon Therapeutics (NTGN) Cambridge, MA |
$100M $474M |
$15 - $17 6,250,000 |
Morgan Stanley BofA ML |
| Developing a targeted immunotherapy platform for various cancers. | |||
| Uxin (UXIN) Beijing, China |
$437M $3,740M |
$10.50 - $12.50 38,000,000 |
Morgan Stanley Goldman (Asia) |
| Leading online used-car marketplace for businesses and consumers in China. | |||
| BJ's Wholesale Club (BJ) Westborough, MA |
$600M $2,121M |
$15 - $17 37,500,000 |
BofA ML Deutsche Bank |
| Warehouse membership club operating over 215 stores across the East Coast. | |||
| BrightView (BV) Plymouth Meeting, PA |
$501M $2,388M |
$22 - $25 21,300,000 |
Goldman JP Morgan |
| Largest provider of commercial landscaping services in the US. | |||
| EverQuote (EVER) Cambridge, MA |
$75M $471M |
$15 - $17 4,687,500 |
JP Morgan BofA ML |
| Operates an online auto insurance marketplace. | |||
| Forty Seven (FTSV) Menlo Park, CA |
$101M $474M |
$14 - $16 6,700,000 |
Morgan Stanley Credit Suisse |
| Developing anti-CD47 antibodies for various cancers. | |||
| GoodBulk (GBLK) Gildo Pastor Center, Monaco |
$140M $628M |
$15.50 - $17.50 8,500,000 |
Morgan Stanley Credit Suisse |
| International dry bulk shipping company with a fleet of 30 vessels. | |||
| Neuronetics (STIM) Malvern, PA |
$75M $279M |
$14 - $16 5,000,000 |
Piper Jaffray William Blair |
| Sells a medical system that uses magnetic stimulation to relieve depression. | |||
| New Frontier (NFC.U) |
$230M $333M |
$10 23,000,000 |
Credit Suisse UBS |
| Chinese blank check company formed to acquire a healthcare, technology or education business. | |||
| Translate Bio (TBIO) Lexington, MA |
$100M $593M |
$12 - $14 7,700,000 |
Citi Leerink Partners |
| Early-stage biotech developing mRNA therapies for genetic diseases. | |||
| Tricida (TCDA) South San Francisco, CA |
$175M $723M |
$16 - $18 10,300,000 |
Goldman JP Morgan |
| Late-stage biotech targeting conditions associated with chronic kidney disease. | |||
| Domo (DOMO) American Fork, UT |
$189M $546M |
$19 - $22 9,200,000 |
Morgan Stanley Allen & Co. |
| Provides on-demand access to real-time business data. | |||
| HyreCar (HYRE) Los Angeles, CA |
$12M $62M |
$5 - $6 2,100,000 |
Network 1 |
| Provides a peer-to-peer car-sharing marketplace. | |||
| Lovesac (LOVE) Stamford, CT |
$42M $177M |
$13 - $15 3,000,000 |
Roth Cap. |
| Sells premium couches and beanbag chairs. | |||
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Domo (DOMO): once valued at $2 billion privately, business analytics platform is targeting $188 million at a $546 million market value. The company grew revenue 32% in the 1Q18, with a -115% adjusted EBITDA margin. While recent high-growth SaaS IPOs have been well received, Domo has had relatively weak retention and only modest growth despite its massive spending on sales and marketing. The founder will also retain voting control (86%).
Uxin (UXIN), a leading internet marketplace for used cars in China, is targeting $437 million at a $3.7 billion market value. The company grew revenue 93% to $100 million in the 1Q18 and operates in China’s rapidly expanding used car market, expected to grow at a CAGR of 19% through 2022. While Uxin is a top player in this large market the area remains highly competitive and losses have been steep.
BJ’s (BJ), the third largest warehouse club operator in the US, is aiming to raise $600 million at a $2.1 billion market cap. Taken private by CVC and Leonard Green in 2011 for $2.8 billion, BJ’s is the leading player in the Northeast. That said, the company’s comp growth is below peers like Costco and Sam’s Club, while its PE owners took large debt-funded dividends.
Brightview (BV) is the largest provider of commercial landscaping services in the US and is aiming to raise $500 million at a $2.4 billion valuation. LBO’d by KKR in 2013, it grew revenue at 11% to $1.1 billion in the 1Q18. Brightview has strong cash flow with some recent margin expansion, but it has mostly grow, through acquisitions and remains highly leveraged.
EverQuote (EVER), the largest online marketplace for insurance in the US, is targeting $75 million at a $471 market value. After growing just 3% in 2017, revenue rebounded 28% in the 1Q18. It estimates a $2.6 billion market opportunity, with the online insurance ad segment growing 16% in 2015. Despite this anticipated growth, insiders are selling 33% of the deal, while revenue concentration poses a key risk.
LoveSac (LOVE), which designs and manufactures premium beanbag chairs (ranging in price from $350 to $1,200) and couches, is aiming to raise $42 million at a $177 million valuation. The founder-led company grew revenue 52% in the 1Q18 and operates within the furniture retailing industry (3.4% CAGR through 2022). That said, the company faces competition from its large peers such as Crate and Barrel, Wayfair and IKEA.
GoodBulk (GBLK) is an international dry bulk shipping company targeting $140 million at a $628 million market value. The C Transport Maritime-operated company grew 1Q18 revenue almost 10x to $35 million due to ship acquisitions, and estimates the demand for shipping various bulk goods will increase between 2-4% for the next year. That said, GoodBulk operates in a highly volatile and capex-intensive market.
Neuronetics (STIM), which sells devices for depression, is targeting $75 million at a $279 market value. Revenue jumped 35% to $10 million in the 1Q18.
Neon Therapeutics (NTGN), a clinical-stage immuno-oncology biotech, is aiming to raise $100 million (35% from insiders) at a $474 million valuation. The company is developing cancer treatments by targeting genetic mutations via neoantigens.
Translate Bio (TBIO), a biotech developing messenger RNA therapies to treat life-threatening diseases caused by protein or gene dysfunctions, is aiming to raise $100 million at a $593 million valuation. The company initiated a Phase 1/2 clinical trial in May 2018 for lead candidate MRT5005.
Tricida (TCDA) is a late-stage biotech targeting $175 million at a $723 market value. The company is close to commercializing a treatment for of chronic kidney disease, having recently completed Phase 3 trials for its lead candidate TRCA-301.
Forty Seven (FTSV) is an immuno-oncology biotech aiming to raise $101 million at a $475 million valuation. The company is in six Phase 1b/2 trials for its lead candidate 5F9, a cancer therapy targeting the CD47 pathway.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 9.2% year-to-date, while the S&P 500 is up 3.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and SNAP (SNAP). The Renaissance International IPO Index is down -3.4% year-to-date, while the ACWX is down -3.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Siemens Healthineers and Delivery Hero.
