In another busy week for the September IPO market, eight IPOs are scheduled to raise $2.0 billion, led by prescription drug marketplace GoodRx Holdings (GDRX).
The largest deal of the week, GoodRx (GDRX) plans to raise $900 million at an $11.2 billion market cap. The company operates in the large prescription drug market, providing a mobile app and website that allows consumers to easily compare drug prices, and has delivered strong growth over the last several years. While lower-margin offerings have weighed on gross margin, GoodRx is profitable on an EBITDA and net basis and has generated strong cash flow.
Brazilian energy solutions provider Hygo Energy Transition (HYGO) plans to raise $450 million at a $2.4 billion market cap. Hygo Energy Transition provides integrated downstream liquefied natural gas solutions and has historically derived the majority of its revenue from LNG carriers, which it expects to convert into floating storage and regasification units. The company achieved profitability on an EBITDA basis in the 1H20, though revenue has been declining.
Bentley Systems (BSY), which provides software for construction and infrastructure projects, plans to raise $194 million at a $4.9 billion market cap. The IPO float is just 4.1% of the basic shares outstanding, or 3.3% after indicated buying. Operating in a cyclical market, the company has delivered profitability with strong margins. The company’s operations were impacted by COVID-19 as usage declined due to delays in construction projects. Bentley Systems plans to pay a quarterly dividend.
Computer and gaming hardware supplier Corsair Gaming (CRSR) plans to raise $238 million at a $1.7 billion market cap. Corsair is a leading provider of high-performance gear for gamers and content creators, with a growing share in the $30+ billion global market. The company has a track record of positive EBITDA, and gross margin has improved due to a higher mix of peripherals sales, though it faces exposure to volatile raw material costs.
Preclinical biotech Taysha Gene Therapies (TSHA) plans to raise $125 million at a market cap of $725 million. The company is developing gene therapies for a variety of rare genetic diseases. It plans to initiate a Phase 1/2 trial for its lead candidate under a CTA in Canada by the end of 2020. In addition, it plans to submit INDs for four additional programs to the FDA by the end of 2021.
Plant-based beverage manufacturer Laird Superfood (LSF) plans to raise $42 million at a $167 million market cap. Founded by surfers Laird Hamilton and Paul Hodge, Laird Superfood manufactures and markets differentiated plant-based and functional foods, generating a majority of revenue from its Superfood Creamer coffee creamers. The company has demonstrated strong growth but is unprofitable, and gross margin declined in the 1H20.
Amesite (AMST), which provides an AI-driven platform for developing online learning products, plans to raise $16 million at a $109 million market cap. Amesite provides customized, high performance, and scalable online products for customers including businesses, universities and colleges, and K-12 schools. The company has a short operating history in online programs and generated less than $60,000 in revenue in the FY20.
Phase 2 biotech PaxMedica (PXMD) plans to raise $15 million at a market cap of $59 million. The company's lead candidate PAX-101, an intravenous formulation of suramin, is currently in a Phase 2B clinical trial at six sites in South Africa for the treatment of autism spectrum disorder (ADS), with data expected in early 2021.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Amesite (AMST) Detroit, MI |
$16M $109M |
$4.50 - $5.50 3,100,000 |
Laidlaw (UK) |
| Provides an AI-driven platform for developing online learning products. | |||
| Bentley Systems (BSY) Exton, PA |
$194M $4,916M |
$17 - $19 10,750,000 |
Goldman BofA |
| Provides software for construction and infrastructure projects. | |||
| Corsair Gaming (CRSR) Fremont, CA |
$238M $1,680M |
$16 - $18 14,000,000 |
Goldman Barclays |
| Designs and supplies personal computer and gaming hardware components. | |||
| GoodRx (GDRX) Santa Monica, CA |
$900M $11,160M |
$24 - $28 34,615,384 |
Morgan Stanley Goldman |
| Operates a prescription drug price comparison platform. | |||
| Laird Superfood (LSF) Sisters, OR |
$42M $167M |
$18 - $20 2,200,000 |
Canaccord Craig-Hallum |
| Manufactures plant-based packaged beverage products. | |||
| Taysha Gene Therapies (TSHA) Dallas, TX |
$125M $725M |
$18 - $20 6,578,950 |
Goldman Morgan Stanley |
| Preclinical biotech developing gene therapies for very rare CNS disorders. | |||
| Hygo Energy Transition (HYGO) Hamilton, Bermuda |
$450M $2,400M |
$18 - $21 23,100,000 |
Morgan Stanley Goldman |
| Provides integrated downstream liquefied natural gas solutions in Brazil. | |||
| PaxMedica (PXMD) Woodcliff Lake, NJ |
$15M $59M |
$5.50 - $6.50 2,500,000 |
Benchmark |
| Phase 2 biotech developing therapies for neurodevelopmental disorders. | |||
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Street research is expected for two companies in the week ahead. On Monday, 9/21: Xpeng (XPEV). On Wednesday, 9/23: GreenPower Motor (GP).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/17/20, the Renaissance IPO Index was up 59.2% year-to-date, while the S&P 500 was up 3.9%. 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 35.5% year-to-date, while the ACWX was down 2.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
