Five IPOs and one SPAC plan to raise $1.7 billion in the week ahead. Rumors are swirling that The We Company (WE) will launch its long-awaited IPO.
Datadog (DDOG) will join the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). The company targets $492 million at a $6.6 billion valuation. With $266 million in trailing sales, it's sales multiple is not cheap, but neither are its closest comps. And with +82% growth in the LTM and near-breakeven EBITDA, Datadog may earn its place among the elite software names.
Ping Identity (PING) plans to raise $188 million at a $1.2 billion valuation. Bought by Vista Equity Partners in 2016 for $600 million, Ping Identity provides mostly on-prem enterprise identity access management software. It increased sales by 14% in the 1H19 to $113 million, with a 21% EBITDA margin.
Danaher's dental supply spin-off Envista Holdings (NVST) is the largest by deal size, planning to raise $602 million at a $3.5 billion market cap. With $2.8 billion in trailing sales, the company has low growth (-2% in the 1H19) but positive albeit declining EBITDA margins (14%). Clear aligners are a key growth driver, competing with this past week's SmileDirectClub (SDC).
Two smaller healthcare deals round out the group. IGM Biosciences (IGMS) is an early-stage immuno-oncology play focused on engineered antibodies, and Exagen (XGN) sells diagnostics for autoimmune diseases.
The SPAC, Apex Technology Acquisition (APTXU) is led by Bessemer Venture's Jeff Epstein and FoodyDirect.com co-founder Brad Koenig.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Apex Technology Acq. (APTXU) Burlingame, CA |
$275M $351M |
$10 27,500,000 |
Cantor Fitz. |
| Blank check company targeting a software or internet technology business. | |||
| Envista (NVST) Brea, CA |
$602M $3,479M |
$21 - $24 26,768,000 |
JP Morgan Goldman |
| Dental supplies and equipment unit being carved out of Danaher. | |||
| IGM Biosciences (IGMS) Mountain View, CA |
$125M $442M |
$15 - $17 7,812,500 |
Jefferies Piper Jaffray |
| Phase 1/Preclinical immuno-oncology biotech developing engineered antibodies. | |||
| Datadog (DDOG) New York, NY |
$492M $6,598M |
$19 - $22 24,000,000 |
Morgan Stanley Goldman |
| Provides a monitoring and analytics platform for companies' technology stacks. | |||
| Exagen (XGN) Vista, CA |
$50M $190M |
$14 - $16 3,333,334 |
Cowen Cantor Fitz. |
| Sells blood tests that can diagnose, prognose, or monitor autoimmune diseases. | |||
| Ping Identity (PING) Denver, CO |
$188M $1,200M |
$14 - $16 12,500,000 |
Goldman BofA ML |
| Provides an enterprise security platform focused on identity access management. | |||
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The following IPOs are expected to price this week:
Apex Technology Acquisition (APTXU), a blank check company targeting a software or internet technology business, plans to raise $275 million by offering 27.5 million shares at a price of $10.00. At the midpoint of the proposed range, Apex would command a market value of $351 million. Apex Technology Acquisition was founded in 2019. The Burlingame, CA-based company plans to list on the Nasdaq under the symbol APTXU. Cantor is the lead bookrunner on the deal.
Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise $492 million by offering 24.0 million shares at a price range of $19.00 to $22.00. At the midpoint of the proposed range, Datadog would command a market value of $6.6 billion. Datadog, which was founded in 2010, booked $266 million in sales over the last 12 months. The New York, NY-based company plans to list on the Nasdaq under the symbol DDOG. Morgan Stanley, Goldman Sachs, J.P. Morgan and Credit Suisse are the joint bookrunners on the deal.
Envista Holdings (NVST), a dental supplies and equipment unit being carved out of Danaher, plans to raise $602 million by offering 26.8 million shares at a price range of $21.00 to $24.00. At the midpoint of the proposed range, Envista Holdings would command a market value of $3.5 billion. Envista, which was founded in 2004, booked $2.8 billion in sales over the last 12 months. The Brea, CA-based company plans to list on the NYSE under the symbol NVST. J.P. Morgan, Goldman Sachs, Morgan Stanley and Baird are the joint bookrunners on the deal.
Exagen (XGN), which sells blood tests that can diagnose, prognose, or monitor autoimmune diseases, 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, Exagen would command a market value of $190 million. Exagen, which was founded in 2002, booked $38 million in sales over the last 12 months. The Vista, CA-based company plans to list on the Nasdaq under the symbol XGN. Cowen, Cantor Fitzgerald and William Blair are the joint bookrunners on the deal. Insiders intend to purchase up to $12 million of the IPO (24% of the deal).
IGM Biosciences (IGMS), a phase 1/Preclinical immuno-oncology biotech developing engineered antibodies, plans to raise $125 million by offering 7.8 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, IGM Biosciences would command a market value of $442 million. The Mountain View, CA-based company plans to list on the Nasdaq under the symbol IGMS. Jefferies, Piper Jaffray, Stifel and Guggenheim Securities are the joint bookrunners on the deal. Insiders intend to purchase $50 million of the IPO (40% of the deal).
Ping Identity Holding (PING), which provides an enterprise security platform focused on identity access management, plans to raise $188 million by offering 12.5 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Ping Identity Holding would command a market value of $1.2 billion. Ping Identity Holding, which was founded in 2001, booked $215 million in sales over the last 12 months. The Denver, CO-based company plans to list on the NYSE under the symbol PING. Goldman Sachs, BofA Merrill Lynch, RBC Capital Markets and Citi are the joint bookrunners on the deal.
