Levi Strauss (LEVI) is bringing its blue jeans back to public markets. This week the company filed for an IPO that we estimate could raise $750 million, coming as early as March. It's no wonder Levi is going public, based on its 2017 and 2018 financials, which saw sales growth of 8% and 14%, respectively. That's especially impressive given the current retail environment. Blackstone-backed HR services provider Alight (ALIT) also filed for an estimated $750 million IPO.
Getting in ahead of the February lull, five small healthcare companies IPO'd this past week, many with substantial insider support. Trading was mostly negative, with the exception of micro-cap eczema treatment developer Hoth Therapeutics (HOTH), which popped 52%.
Virgin Trains USA (VTUS) would have been the year's largest IPO, but the Florida-based rail company shelved its IPO plans, along with seed trait developer Cibus (CBUS) and micro-cap BankFlorida (BFL). Despite the IPO Index's explosive performance this year (+24% vs. +11% for the S&P 500), IPO investors are closely evaluating each deal. Even so, we expect filing activity to continue to pick up, leading to healthy deal flow in March.
| 5 IPOs During the Week of February 11th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 02/15 |
| Hoth Therapeutics (HOTH) | $7M | $57M | -7% | +52% | +52% |
| Developing topical treatments for eczema. | |||||
| TCR2 Therapeutics (TCRR) | $75M | $374M | 0% | +0% | +0% |
| Early stage biotech developing immunotherapies for various cancers. | |||||
| Stealth BioTherapeutics (MITO) | $78M | $400M | -8% | -1% | -1% |
| Phase 3 biotech focused on rare diseases caused by mitochondrial dysfunction. | |||||
| Avedro (AVDR) | $70M | $271M | -7% | -12% | -12% |
| Sells ophthalmic medical systems used in treating corneal disorders. | |||||
| Anchiano Therapeutics (ANCN) | $31M | $85M | 0% | -6% | -19% |
| Late-stage biotech developing therapies for early-stage bladder cancer. | |||||
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| 5 Filings During the Week of February 11th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Crescent Acquisition (CRSAU) | $250M | SPAC | Credit Suisse |
| Bank check company formed by Crescent Capital. | |||
| Alight (ALIT) | $750M | Industrials | BofA ML |
| Blackstone-backed provider of outsourced cloud-based HR services. | |||
| Levi Strauss (LEVI) | $750M | Consumer Discretionary | Goldman |
| World's largest denim apparel brand. | |||
| Tuscan Holdings (THCBU) | $200M | SPAC | EarlyBird |
| Blank check company led by Stephen Vogel and targeting the cannabis industry. | |||
| Hennessy Capital IV (HCACU) | $250M | SPAC | Nomura |
| Blank check company targeting the industrial and infrastructure solutions sectors. | |||
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