Up to five IPOs plan on raising $1.4 billion in the week ahead. Large deals Chewy and CrowdStrike should get the most attention.
Being spun out of PetSmart, Chewy (CHWY) is targeting a $750 million IPO at a valuation of $7.6 billion. The company has quickly grown to more than $3.5 billion in sales, and over half of that comes from customers who have used its recurring autoship service. However, there are numerous related party transactions with its parent, and the company is still highly unprofitable.
CrowdStrike Holdings (CRWD) plans to raise more than $500 million at a valuation north of $6.5 billion. The provider of endpoint security software has seen skyrocketing growth (+118% CAGR since 2016) as it gains strong adoption by enterprise clients. While losses have also ballooned, investors don't seem to mind; the company raised its range by about 40% this past week to $28 to $30.
Backed by Bessemer and Accel Partners, Israel-based freelancer marketplace Fiverr International (FVRR) plans to raise $100 million at a market cap of $635 million. The company grew sales by 45% in 2018 to $83 million, but with a -27% operating loss.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| CrowdStrike (CRWD) Sunnyvale, CA |
$522M $6,535M |
$28 - $30 18,000,000 |
Goldman JP Morgan |
| Provides cloud-native endpoint security software for large enterprises. | |||
| Fiverr International (FVRR) Tel Aviv, Israel |
$100M $635M |
$18 - $20 5,263,158 |
JP Morgan Citi |
| Online marketplace to hire and manage remote freelancers. | |||
| Chewy (CHWY) Dania Beach, FL |
$749M $7,621M |
$17 - $19 41,600,000 |
Morgan Stanley JP Morgan |
| Largest US online retailer of pet food and supplies being spun out of PetSmart. | |||
| G Medical Innovations (GMVD) London, United Kingdom |
$15M $81M |
$10.50 1,428,571 |
HC Wainwright |
| Provides app-connected medical devices for monitoring vital signs. | |||
| Mohawk (MWK) New York, NY |
$50M $271M |
$14 - $16 3,333,333 |
Roth Cap. A.G.P. |
| Sells consumer products based on market data gathered using its AI platform. | |||
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The following IPOs are expected to price this week:
Chewy (CHWY), the largest US online retailer of pet food and supplies being spun out of PetSmart, plans to raise $749 million by offering 41.6 million shares (87% insider) at a price range of $17.00 to $19.00. At the midpoint of the proposed range, Chewy would command a market value of $7.6 billion. Chewy, which was founded in 2011, booked $3.5 billion in sales over the last 12 months. The Dania Beach, FL-based company plans to list on the NYSE under the symbol CHWY. Morgan Stanley, J.P. Morgan, Allen & Company, BofA Merrill Lynch, Barclays, Jefferies, RBC, UBS, and Wells Fargo are the joint bookrunners on the deal.
CrowdStrike Holdings (CRWD), which provides cloud-native endpoint security software for large enterprises, plans to raise $522 million by offering 18.0 million shares at a price range of $28.00 to $30.00. At the midpoint of the upwardly-revised range, it would command a market value of $6.5 billion. CrowdStrike, which was founded in 2011, booked $250 million in sales over the last 12 months. The Sunnyvale, CA-based company plans to list on the Nasdaq under the symbol CRWD. Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Barclays, Credit Suisse, Jefferies, RBC, Stifel, HSBC, Macquarie Capital, Piper Jaffray, and SunTrust are the joint bookrunners on the deal.
Fiverr International (FVRR), an online marketplace to hire and manage remote freelancers, plans to raise $100 million by offering 5.3 million shares at a price range of $18.00 to $20.00. At the midpoint of the proposed range, Fiverr International would command a market value of $635 million. Fiverr, which was founded in 2010, booked $83 million in sales over the last 12 months. The Tel Aviv, Israel-based company plans to list on the NYSE under the symbol FVRR. J.P. Morgan, Citi, and BofA Merrill Lynch are the joint bookrunners on the deal.
G Medical Innovations Holdings (GMVD), which provides app-connected medical devices for monitoring vital signs, plans to raise $15 million by offering 1.4 million shares at a price of $10.50. At that price, it would command a market value of $81 million. G Medical Innovations, which was founded in 2014, booked $3 million in sales over the last 12 months. The London, United Kingdom-based company plans to list on the Nasdaq under the symbol GMVD. The company is currently listed on the ASX under the symbol GMV. H.C. Wainwright is the sole bookrunner on the deal.
Mohawk Group Holdings (MWK), which sells consumer products based on market data gathered using its AI platform, plans to raise $50 million by offering 3.3 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, it would command a market value of $271 million. Mohawk, which was founded in 2014, booked $77 million in sales over the last 12 months. The New York, NY-based company plans to list on the Nasdaq under the symbol MWK. Roth Capital and A.G.P. are the joint bookrunners on the deal.
Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/6/19, the Renaissance IPO Index was up 32.0% year-to-date, while the S&P 500 had a gain of 14.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (ELAN) and Okta (OKTA). The Renaissance International IPO Index was up 9.8% year-to-date, while the ACWX was up 9.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
