US IPO Week Ahead: Bumble’s billion-dollar deal leads a buzzy 15 IPO week

Updated Monday, 2/8.

The IPO market is buzzing with 15 IPOs slated to raise $4.0 billion in the week ahead, led by dating app Bumble’s billion-dollar offering.

Bumble (BMBL) plans to raise $1.7 billion at a $7.5 billion market cap. The company operates the Bumble and Badoo apps, the world’s second and fourth highest grossing dating apps, respectively. Operating in a competitive market with low barriers to entry, Bumble was profitable on an EBITDA basis in the 9mo20, and growth accelerated in the most recent quarter.

Signify Health (SGFY), which provides a value-based billing platform for in-home and bundled health services, plans to raise $423 million at a $4.1 billion market cap. Signify’s episode payment platform managed $6.1 billion of spend under the Medicare BPCI-A program in 2019. The company has demonstrated growth and was profitable on an EBIT basis in the 9mo20.

After delaying its pricing the previous week, loanDepot (LDI) plans to raise $300 million at a $6.2 billion market cap. This nonbank lender provides loan origination and servicing with a focus on mortgage and unsecured personal loans. While the company is fast growing and profitable, it operates in a highly cyclical industry, and recent IPOs of mortgage lenders have had lackluster receptions.

Chinese cloud communication provider Cloopen Group Holding (RAAS) plans to raise $280 million at a $2.1 billion market cap. The company is China’s largest multi-capability cloud-based communications solution provider by 2019 revenue. Unprofitable with decelerating growth in the 9mo20, Cloopen Group had an active customer base of over 12,000 enterprises as of 9/30/20.

Advertising software maker Viant Technology (DSP) plans to raise $196 million at a $1.5 billion market cap. Viant Technology’s software enables the electronification of the advertising buying process, called programmatic advertising. While the company’s active customers declined in the 9mo20, average revenue ex-TAC per active customer rose 23% y/y.

Apria (APR) plans to raise $150 million at a $756 million market cap. Apria is a provider of integrated home healthcare equipment and related services in the US. Slow growing and profitable, the company served nearly 2 million patients, made nearly 2.4 million deliveries, and conducted over 744,000 clinician interactions with patients in 2019.

Talis Biomedical (TLIS) plans to raise $150 million at an $829 million market cap. The company is developing Talis One tests for respiratory infections, infections related to women’s health, and sexually transmitted infections. Talis submitted a request for an EUA to the FDA for its Talis One platform with COVID-19 molecular diagnostic assay in January 2021.

Chinese cancer biotech Adagene (ADAG) plans to raise $132 million at an $831 million market cap. Adagene’s most advanced NEObody product candidate ADG106, a fully human ligand-blocking agonistic anti-CD137 mAb, is currently in Phase 1b trials in the US and China. ADG106 is designed to target a unique epitope of CD137 that is different from other anti-CD137 antibodies currently in development.

Orthobiologic product developer Bioventus (BVS) plans to raise $125 million at a $922 million market cap. Bioventus is focused on developing and commercializing clinically differentiated, cost efficient, and minimally invasive treatments that engage and enhance the body's natural healing process. The company is profitable, though revenue fell in the 9mo20 due to COVID-related declines in volume.

Newly-formed cannabis finance REIT AFC Gamma (AFCG) plans to raise $100 million at a $214 million market cap. Formed by Advanced Flower Capital, AFC Gamma originates, structures, underwrites, and manages senior secured and other types of loans for established companies operating in the cannabis industry. It plans to issue regular quarterly distributions of all or substantially all of its REIT taxable income.

Hearing disorder biotech Decibel Therapeutics (DBTX) plans to raise $100 million at a $427 million market cap. Its lead gene therapy product candidate is being developed to provide hearing to individuals born with profound hearing loss due to mutation of the otoferlin gene. Its sole clinical candidate, DB-020, is being developed for the prevention of cisplatin-induced hearing loss and is currently being evaluated in a Phase 1b trial.

Immunotherapy biotech NexImmune (NEXI) plans to raise $75 million at a $342 million market cap. The company currently has two candidates in Phase 1/2 trials: NEXI-001, for acute myeloid leukemia, and NEXI-002, for multiple myeloma. The company expects to announce data for most patients in both trials by the end of 2021.

Chinese marketing services firm Baosheng Media Group Holdings (BAOS) plans to raise $28 million at a $140 million market cap. The company advises advertisers on online marketing strategies, offer value-added advertising optimization services, and facilitate the deployment of online ads. Its main offerings are search engine marketing services and non-search engine marketing services.

Cell therapy biotech Longeveron (LGVN) plans to raise $25 million at a $194 million market cap. Longeveron is developing cellular therapies for specific aging-related and life-threatening conditions. Its lead investigational product is the LOMECEL-B cell-based therapy, and the company is currently sponsoring Phase 1 and 2 trials in five indications.

French-listed biotech Biophytis (BPTS) plans to raise $20 million at a $195 million market cap. Biophytis' lead candidate is an orally administered small molecule in development for the treatment of neuromuscular diseases and is currently in a Phase 2 trial for sarcopenia, with top-line results expected in the 2Q21. The candidate is also in an ongoing Phase 2/3 study for SARS-CoV-2 pneumonia.

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Street research is expected for eight companies. On Monday, 2/8: Kuke Music (KUKE), Qilian International Holding (QLI), Affirm (AFRM), Motorsport Games (MSGM), Petco (WOOF), and Poshmark (POSH). On Tuesday, 2/9: Driven Brands Holdings (DRVN) and Playtika Holding (PLTK).

Lock-up periods will be expiring for five companies. On Tuesday, 2/9: KE Holdings (BEKE) and NetSTREIT (NTST). On Wednesday, 2/10: CureVac (CVAC) and Duck Creek Technologies (DCT). On Thursday, 2/11: BigCommerce (BIGC).

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/4/21, the Renaissance IPO Index was up 12.5% year-to-date, while the S&P 500 was up 3.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Peloton Interactive (PTON). The Renaissance International IPO Index was up 6.6% year-to-date, while the ACWX was up 3.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Smoore International.