Five IPOs and two SPACs plan to raise $634 million in the week ahead.
One of the leading makers of cryptocurrency mining equipment, Canaan (CAN) plans to raise $100 million at a $1.6 billion market cap. It originally filed to raise $400 million (and in 2018 was rumored to be targeting over $1 billion). The #2 player in the space, Canaan has shown that it’s capable of being highly profitable, with a 61% net margin in the 1Q18. However, its performance is heavily influenced by Bitcoin prices; a price slump earlier in the year caused Canaan’s sales to fall 96% in the 1Q19.
Being carved out of Consolidated-Tomoka (NYSE: CTO), retail and office REIT Alpine Income Property Trust (PINE) plans to raise $150 million at a $182 million market cap and a 4% yield at the midpoint. Alpine Income is small with a concentrated tenant base, but it has a 100% leased portfolio and a large acquisition pipeline that should drive future growth.
Chinese debt collector YX Asset Recovery (YXR) plans to raise $81 million at a $541 million market cap. YX Asset Recovery is the largest collector of tertiary receivables in China with a 9% market share, according to iResearch, with roughly $4 billion in receivables under collection as of 6/30/19.
MegaChips spin off SiTime (SITM), a fabless producer of silicon timing systems, plans to raise $60 million at a $200 million market cap. The semiconductor industry is highly cyclical and is currently experiencing a downturn, but SiTime has established itself as a leader in the silicon MEMS oscillators market, claiming a 90%+ share.
Micro-cap auto e-tailer LMP Automotive Holdings (LMPX) plans to raise $18 million at a $51 million market cap. The company had high growth in 2018, but revenue fell 28% in the 9mo19, and its gross margin has yet to swing positive.
Former Ooyala executives’ SPAC Software Acquisition Group (SAQNU) plans to raise $125 million, and Metalmark Capital and Avego Healthcare Capital’s joint venture Amplitude Healthcare Acquisition (AMHCU) plans to raise $100 million.
Lock-up periods for Bicycle Therapeutics (BCYC), IDEAYA Biosciences (IDYA), and Rattler Midstream (RTLR) will be expiring this week on Tuesday, November 19.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Amplitude Healthcare Acq. (AMHCU) New York, NY |
$100M $125M |
$10 10,000,000 |
BMO Leerink |
| Blank check company formed by Metalmark Capital and Avego Healthcare Capital targeting healthcare in the US or Europe. | |||
| YX Asset Recovery (YXR) Changsha, China |
$81M $541M |
$7.75 - $9.75 9,282,000 |
Deutsche Bank CMB International Capital |
| Provides delinquent consumer debt collection services in China. | |||
| Canaan (CAN) Hangzhou, China |
$100M $1,581M |
$9 - $11 10,000,000 |
Citi China Ren. |
| Leading maker of cryptocurrency mining equipment. | |||
| SiTime (SITM) Santa Clara, CA |
$60M $200M |
$13 - $15 4,300,000 |
Barclays Stifel |
| Fabless producer of silicon timing systems being spun out of MegaChips. | |||
| Alpine REIT (PINE) Daytona Beach, FL |
$150M $182M |
$19 - $21 7,500,000 |
Raymond James Baird |
| Single-tenant commercial net lease REIT formed by Consolidated-Tomoka. | |||
| LMP Automotive (LMPX) Plantation, FL |
$18M $51M |
$5 - $6 3,227,500 |
ThinkEquity |
| Operates an e-commerce site where users can buy, sell, and rent cars. | |||
| Software Acquisition (SAQNU) Las Vegas, NV |
$125M $156M |
$10 12,500,000 |
B. Riley FBR |
| Blank check company led by former Ooyala officers targeting a software company. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
The following IPOs are expected to price this week:
Alpine Income Property Trust (PINE), a single-tenant commercial net lease REIT formed by Consolidated-Tomoka, plans to raise $150 million by offering 7.5 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, Alpine Income Property Trust would command a market value of $182 million. Alpine Income Property Trust, which was founded in 2019, booked $14 million in revenue over the last 12 months. The Daytona Beach, FL-based company plans to list on the NYSE under the symbol PINE. Raymond James, Baird, B. Riley FBR, and BMO Capital Markets are the joint bookrunners on the deal. Please note: Parent CTO has agreed to invest $7.5 million in a concurrent private placement.
Amplitude Healthcare Acquisition (AMHCU), a blank check company formed by Metalmark Capital and Avego Healthcare Capital targeting healthcare in the US or Europe, plans to raise $100 million by offering 10.0 million units at $10.00 to command a market value of $125 million. Amplitude Healthcare Acquisition was founded in 2019. The New York, NY-based company plans to list on the Nasdaq under the symbol AMHCU. BMO Capital Markets and SVB Leerink are the joint bookrunners on the deal.
Canaan (CAN), a leading maker of cryptocurrency mining equipment, plans to raise $100 million by offering 10.0 million ADSs at a price range of $9.00 to $11.00. At the midpoint of the proposed range, Canaan would command a market value of $1.6 billion. Canaan, which was founded in 2013, booked $1.2 billion in sales over the last 12 months. The Hangzhou, China-based company plans to list on the Nasdaq under the symbol CAN. Citi, China Renaissance, and CMB International Capital are the joint bookrunners on the deal.
LMP Automotive Holdings (LMPX), which operates an e-commerce site where users can buy, sell, and rent cars, plans to raise $18 million by offering 3.2 million shares at a price range of $5.00 to $6.00. At the midpoint of the proposed range, LMP Automotive Holdings would command a market value of $51 million. LMP Automotive Holdings, which was founded in 2017, booked $14 million in revenue over the last 12 months. The Plantation, FL-based company plans to list on the Nasdaq under the symbol LMPX. ThinkEquity is the lead bookrunner on the deal. Please note: Founder, CEO, and Chairman Samer Tawfik intends to purchase up to $3 million of the IPO (15% of the deal).
SiTime (SITM), the fabless producer of silicon timing systems being spun out of MegaChips, plans to raise $60 million by offering 4.3 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, SiTime would command a market value of $200 million. SiTime, which was founded in 2003, booked $79 million in sales over the last 12 months. The Santa Clara, CA-based company plans to list on the Nasdaq under the symbol SITM. Barclays and Stifel are the joint bookrunners on the deal.
Software Acquisition Group (SAQNU), a blank check company led by former Ooyala officers targeting a software company, plans to raise $125 million by offering 12.5 million units at $10.00 to command a market value of $156 million. Software Acquisition Group was founded in 2019. The Las Vegas, NV-based company plans to list on the Nasdaq under the symbol SAQNU. B. Riley FBR is the lead bookrunner on the deal.
YX Asset Recovery (YXR), which provides delinquent consumer debt collection services in China, plans to raise $81 million by offering 9.3 million ADSs at a price range of $7.75 to $9.75. At the midpoint of the proposed range, YX Asset Recovery would command a market value of $541 million. YX Asset Recovery, which was founded in 2015, booked $980 million in revenue over the last 12 months. The Changsha, China-based company plans to list on the NYSE under the symbol YXR. Deutsche Bank, CMB International Capital, Raymond James, AMTD Global Markets, and SunTrust Robinson Humphrey are the joint bookrunners on the deal. Please note: Vice Chairman Joe Zhang intends to purchase up to $5 million of the IPO (6% of the deal).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/14/19, the Renaissance IPO Index was up 28.6% year-to-date, while the S&P 500 had a gain of 23.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 17.0% year-to-date, while the ACWX was up 16.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
