IPO Boutique Brief 3.13.17 — IPO market starting to churn

It’s beginning to be a nice, consistent flow for the IPO market.

So far in March, five deals have come to market…four are on the schedule for this week and one has already set terms for the week of March 20. The total amount of cash raised by the IPO market leading into the four debuts this week (Ardagh Group, Canada Goose, MuleSoft, ProPetro Holding) has been $3.98bn — much of which has been raised by Snap Inc (NYSE: SNAP).

While $SNAP has had an increase in volatility since its debut week, the overwhelming positive sentiment coming from the success of that deal is translating into more and more technology offerings.

The first ‘unicorn’ since Snap, MuleSoft (NYSE: MULE), is set to debut on Friday… which should provide another test to gauge investors’ appetite with the type of companies with large revenue growth combined with substantial losses. MuleSoft’s mission is to help organizations change and innovate faster by making it easy to connect the worlds applications, data, and devices. With this company currently in its road-show, Alteryx (NYSE: AYX), another technology offering, set terms and will debut March 24th.

Shortly after the market opened today…another technology company filed for IPO. Yext Inc (NYSE: YEXT) filed a S-1 with a placeholder of $100m listed for a future IPO. Yext labels itself as a knowledge engine. Their platform lets businesses manage their digital knowledge in the cloud and sync it to over 100 services, including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. Digital knowledge is the structured information that a business wants to make publicly accessible.

There was plenty of talk about technology offerings being ‘backed-up’ in the pipeline…but little-to-no ‘official paperwork’ had been filed with the SEC. Well, that is starting to change with many companies starting to show their hand and subsequently update terms and launch a roadshow weeks after its initial filing. The projection of 200+ IPOs was not looking promising after just 14 deals debuted in the months of January & February.

But the IPO sentiment has started to turn — deals are starting to flow in.