5 IPOs Set Terms In Most Active Day Of 2016

|
Includes: BOLD, CBSR, FHB, LN, PI, PTHN, TLND
by: Renaissance Capital IPO Research

Five diverse companies joined the US IPO calendar on Monday; two VC-backed tech, one large healthcare LBO, one biotech, and one industrial. Line (NASDAQ:LN), the highly anticipated mobile messaging provider, priced at the top of its range, ¥3,300 ($32.84), to begin trading in the US on Thursday. In the past three weeks, only three IPOs had managed to raise over $50 million; all five of Monday's launches are larger. On the heels of our recent blog post on June's heightened IPO filing activity, the IPO market is opening up.

Replacing the deals scheduled to leave the IPO pipeline, Protagonist Therapeutics (Pending:PTGX), a biotech focusing on irritable bowel disease, filed to raise $75 million. Additionally, two large spin-offs filed Friday, CBS Radio (Pending:CBSR) (estimated deal size of $500mm) and First Hawaiian (NASDAQ:FHB) (estimated deal size of $1B).

IPO Terms set on July 11th, 2016

Company Name

Ticker

Deal Size
($mm)

LTM Sales
($mm)

LTM EBITDA
Margin

FYSales
Growth

Talend

(NASDAQ:TLND)

$84

$76

-23%

21%

Patheon

(NYSE:PTHN)

$625

$1,774

21%

6%

Impinj

(NASDAQ:PI)

$60

$79

8%

23%

TPI Composites

(NASDAQ:TPIC)

$116

$586

7%

83%

Audentes Therapeutics

(Pending:BOLD)

$75

$0

n/a

n/a

Click to enlarge

Talend, which markets its cloud-based data integration platform to enterprise clients, set a range of $15-17 for a deal size of $84 million. Joining Twilio (NYSE:TWLO) (+148%) and Line, the tech IPO landscape is opening up. Talend has increased its subscription revenue by over 40% in each of the past four quarters.

Patheon, coming in with a range of $19-22 and a deal size of $625 million, is one of the world's largest contract drug manufacturers. LBO'd by JLL and DSM (selling 16% of the IPO), Patheon plans to pay down its debt to $2.2 billion (5.9x LTM adj EBITDA margin). During the six months ended April 30, 2016, the acquisition-focused company grew revenue grew 1.2% to $875 million.

Impinj, a leader in the RFID and integrated circuits (IC) space, announced a range of $12-14 and a deal size of $60 million. Backed by ARCH and Polaris, Impinj sells IC tags to OEMs and readers to distributors. Revenue has increased 35% to $21 million (-3.8% EBITDA margin) for the MRQ.

TPI Composites, the largest independent US-based manufacturer of composite wind blades, set a range of $15-17 ahead of its $116 million IPO. Supplying the world's largest wind turbine manufacturers, TPI represents the first US IPO of an energy-related company of 2016. TPI has had consistent EBITDA margin growth over the last three years (6.7% at the end of 2015), and revenue growth of 83% in 2015 to $586 million, thanks to major contract wins.

Audentes Therapeutics has four pre-clinical gene therapy candidates for rare diseases caused by monogenic defects. Setting its range at $14-16, the deal size comes in at $75 million. Backers include OrbiMed, 5AM Ventures and Versant Ventures; the latest round of funding (October 2015) raised $65 million at $15.03, just above the pricing mid-point.