Updated Monday, 8/10
After an active July, the US IPO market is taking a breather. Three companies are scheduled to raise $2.5 billion in the week ahead, led by Chinese real estate giant KE Holdings (BEKE).
KE Holdings (BEKE), China's largest housing platform operating under the Lianjia and Beike brands, plans to raise $1.9 billion at a $20.7 billion market cap. Insiders, including Tencent and SoftBank, have indicated on $800 million of the IPO. Fast-growing and profitable in the 1H20, the company's platform had over 260 real estate brokerage brands, 42,000 community-centric stores, and 456,000 agents across 103 cities in China as of 6/30/20.
Duck Creek Technologies (DCT), which provides a SaaS platform for P&C insurers, plans to raise $300 million at a $2.6 billion market cap. Duck Creek counts some of the largest P&C insurers as customers including Progressive, Liberty Mutual, and AIG. Profitable on an EBITDA basis, the company's gross margin contracted in the FY19 and 9mo FY20 as it shifts to lower-margin professional services.
NetSTREIT (NTST), a REIT managing single tenant retail commercial properties, plans to raise $310 million at a $554 million market cap, and it plans to offer a 4% yield at the midpoint. NetSTREIT's portfolio includes 163 single-tenant retail net leased properties spanning 34 states, and its tenants include brands such as 7Eleven, Walmart, and CVS.
German biotech CureVac (CVAC) plans to raise $200 million at a $2.6 billion market cap. The company's pipeline contains lead candidates CV8102, which is currently in a Phase 1 trial for solid tumors, and CV7202, which is currently in a Phase 1 trial for potential vaccination against rabies. The company is also advancing its mRNA vaccine program against coronavirus (SARS-CoV-2), for which it initiated a Phase 1 trial in healthy volunteers in June 2020, with results expected in the 4Q20.
Foresite Capital's SPAC FS Development (FSDC) plans to raise $100 million. The company plans to leverage its management team's experience and target businesses in the biotech sector.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| FS Development (FSDC) San Francisco, CA |
$100M $129M |
$10 10,000,000 |
Jefferies |
| Blank check company formed by Foresite Capital targeting a healthcare business. | |||
| KE Holdings (BEKE) Beijing, China |
$1,908M $20,705M |
$17 - $19 106,000,000 |
Goldman Morgan Stanley |
| China's largest housing platform operating under the Lianjia and Beike brands. | |||
| NetSTREIT (NTST) Dallas, TX |
$310M $554M |
$19 - $21 15,500,000 |
Wells Fargo BofA |
| Net lease REIT that manages single-tenant retail commercial properties. | |||
| CureVac (CVAC) Tübingen, Germany |
$200M $2,647M |
$14 - $16 13,333,333 |
BofA Jefferies |
| German Phase 1 biotech developing mRNA-based cancer therapies and vaccines. | |||
| Duck Creek Tech. (DCT) Boston, MA |
$300M $2,594M |
$19 - $21 15,000,000 |
Goldman JP Morgan |
| Provides a SaaS platform that streamlines business processes for P&C insurers. | |||
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Street research is expected for eight companies. On Monday 8/10: nCINO (NCNO), GoHealth (GOCO), Relay Therapeutics (RLAY), and Trean Insurance (TIG). On Tuesday 8/11: ALX Oncology (ALXO), Berkeley Lights (BLI), Pandion Therapeutics (PAND), and Renalytix AI (RNLX).
Lock-up periods will be expiring for four companies. One Monday 8/10: Huize (HUIZ). On Tuesday 8/11: Houlihan Lokey (HLI), Revolution Medicines (RVMD), and Trxade Group (MEDS).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/6/20, the Renaissance IPO Index was up 49.1% year-to-date, while the S&P 500 was up 3.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 30.8% year-to-date, while the ACWX was down 4.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
