The IPO pipeline burst open on Monday after the Easter holiday.
Seven IPOs from an array of sectors are currently on the schedule for next week. At the mid-point of each of the seven new issues, the total cash raise would be $1.19bn. As far as quantity of IPOs, it will be more than six months since the IPO market digested this amount of new offerings in a single week.
During the week of September 18, 2016, a total of eight IPOs came to market with a total cash raise of $1.22bn. Nearly half of that cash raise came from a $660m offering from Valvoline. That week may have been the pinnacle of the IPO market in 2016 as all eight deals opened with at least 10% gains at first trade and five of the eight deals opened with at least a 25% pop.
A continuing positive sign stemming from the activity in the pipeline is the timeline from first filing to going public. Five of the seven IPOs debuting next week did not officially file an S-1 until March 31 or later. Less than three weeks later these deals have ‘officially launched’ with their respective roadshows underway. For months, we had continued to hear that deals were ‘coming’ or they were ‘in the pipeline’…only to see the official active pipeline numbers dwindle month-after-month. The new norm, apparently, is to not officially show the cards and bring a company public on a strict timeline.
Among the deals next week, one that is ‘interesting’ at this time is Cloudera — who describes themselves as a company that empowers organizations to become data‑driven enterprises in the newly hyperconnected world. This company can certainly be described as a ‘unicorn’ and received a outsized private valuation from a large and respected name in the industry — Intel. Intel spent $742 million in May 2014, or roughly $30.72 a share, on Cloudera. With the current IPO range of $12-$14…this would be roughly a 50% cut on its previous investment. Cloudera’s growth is certainly explosive but recent performance of competitors, Hortonworks in particular, show cause for concern.
Also in play next week will be a ‘disruptor’ in the car-selling industry, Carvana, a healthcare deal, Zymeworks, a financial company, China Rapid Finance, a flooring company, Floor & Decor Holdings, an energy company, NCS Multistage Holdings and a profitable business-to-business trade show company, Emerald Expositions Events.
It’s a little something for everyone…but its not likely every one of these names will be received with the same reception. Stay with IPO Boutique’s subscription service to keep up to speed with the true color about the book-building process and how the roadshow is being received.
And then…you can indicate with confidence.
Company: China Rapid Finance Limited
Symbol: XRF
Price: $9.50-$11.50
Description: They operate one of China’s largest consumer lending marketplaces in terms of total number of loans, having facilitated more than 10.7 million loans to more than 1.4 million borrowers at significantly lower borrowing costs than many of their competitors.
Trade Date: 4/27
Shares: 10 million ADS
Underwriter(s): Morgan Stanley, Credit Suisse, Jefferies
Filed: 4-14-17
Company: Floor & Decor Holdings
Symbol: FND
Price: $16.00-$18.00
Description: Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories with 71 warehouse-format stores across 17 states.
Trade Date: 4/27
Shares: 8.8 million
Underwriter(s): BofA Merrill Lynch, Barclays, Credit Suisse, UBS Investment Bank
Co Manager(s): Goldman Sachs & Co., Jefferies, Piper Jaffray, Wells Fargo Securities, Houlihan Lokey
Terms Added: 4-17-17
Company: Carvana Co
Symbol: CVNA
Price: $14.00-$16.00
Description: Carvana is a leading eCommerce platform for buying used cars. We are transforming the used car buying experience by giving consumers what they want – a wide selection, great value and quality, transparent pricing and a simple, no pressure transaction.
Trade Date: 4/28
Shares: 15 million
Underwriter(s): Wells Fargo Securities, BofA Merrill Lynch, Citigroup, Deutsche Bank Securities
Co-Manager(s): Baird, William Blair, BMO Capital Markets, JMP Securities
Company: Cloudera, Inc.
Symbol: CLDR
Price: $12.00-$14.00
Description: Cloudera empowers organizations to become data‑driven enterprises in the newly hyperconnected world.
Trade Date: 4/28
Shares: 15 million
Underwriter(s): Morgan Stanley, J.P. Morgan, Allen and Company
Co-Manager(s): BofA Merrill Lynch, Citigroup, Deutsche Bank Securities, Stifel, JMP Securities, Raymond James
Terms Added: 4-17-17
Company: Emerald Expositions Events, Inc.
Symbol: EEX
Price: $18.00-$20.00
Description: They are the largest operator of business-to-business trade shows in the United States by NSF, with our oldest trade shows dating back over 110 years.
Trade Date: 4/28
Shares: 15.5 million
Underwriter(s): BofA Merrill Lynch, Barclays, Goldman Sachs & Co., Citigroup, Credit Suisse, Deutsche Bank Securities, RBC Capital Markets
Co-Manager(s): Baird
Filed: 4-17-17
Company: NCS Multistage Holdings
Symbol: NCSM
Price: $15.00-$18.00
Description: They are a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well completions and field development strategies.
Trade Date: 4/28
Shares: 9.5 million
Underwriter(s): Credit Suisse, Citigroup, Wells Fargo Securities
Co-Manager(s): J.P. Morgan, Simmons & Company International Energy Specialist of Piper Jaffray, Raymond James, RBC Capital Markets, Tudor Pickering Holt & Co.
Terms Added: 4-17-17
Company: Zymeworks Inc.
Symbol: ZYME
Price: $13.00-$16.00
Description: Zymeworks is an innovative, clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics, initially focused on the treatment of cancer.
Trade Date: 4/28
Shares: 4.5 million
Underwriter(s): Citigroup, Barclays, Wells Fargo Securities
Co-Manager(s): Canaccord Genuity, Cormark Securities (USA) Limited
Terms Added: 4-17-17
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