Today - Thursday, February 11, 2016
Tuesday, February 9, 2016
- Foodservice giant US Foods (USFD) files for a $100M IPO on the New York Stock Exchange.
- The company's planned merger with Sysco was blocked by regulators last year.
- US Foods reported sales of $17.192B for the nine months ending September 30, 2015. Case shipment growth has increased four consecutive quarters.
- SEC Form S-1
Monday, February 8, 2016
- Tuscon, AZ-based Cancer Prevention Pharmaceuticals (Pending:CPP) is set for its IPO of 1,923,076 shares of common stock at $12 - 14.
- The clinical stage biopharmaceutical firm develops therapeutics for the treatment of prevention of certain pre-cancerous conditions, orphan diseases and gastrointestinal disorders.
- Its lead product candidate is Phase 3-stage CPP-1X/sul for the treatment of familial adenomatous polyposis (FAP), a rare genetic disorder that can lead to the growth to thousands of colorectal adenomas (adenomatous polyps), a key risk factor for colon cancer. The product candidate is a combination of CPP-1X, also known as eflornithine or difluoromethylornithine, and sulindac, a non-steroidal anti-inflammatory drug. Topical formulation eflornithine is marketed for the treatment of facial hirsutism (excessive facial hair). An injectable formulation is marketed for the treatment of sleeping sickness. In early January, the company inked a deal with Sucampo Pharmaceuticals (NASDAQ:SCMP) to develop and commercialize CPP-1X/sul.
- 2015 Financials ($M): Revenues: 3.5 (+618.6%); Operating Expenses: 7.6 (+21.6%); Net Loss: (5.7) (+5.3%); CF Ops: (2.9) (-2.2%).
- Cambridge, MA-based Proteostasis Therapeutics (Pending:PTI) is set for its IPO of 3.85M shares of common stock at $12 - 14.
- The biopharmaceutical firm develops therapeutics that treat diseases caused by an imbalance in the proteostasis network, a set of pathways that control protein biosynthesis, folding, trafficking and clearance. Its initial focus is cystic fibrosis, caused by a defect in the CFTR gene.
- Its lead product candidate is Fast Track-tagged PTI-428, an orally administered CFTR modulator in the amplifier class, which means PTI-428 increases the amount of an immature form of CFTR protein. This provides additional substrate for other CFTR modulators, correctors (e.g. lumacaftor in Vertex Pharmaceuticals' ORKAMBI) or potentiators (ivacaftor in Vertex's Kalydeco or ORKAMBI), to act upon. In preclinical studies, co-administration of PTI-428 with other CFTR modulators almost doubled the in vitro CFTR protein activity achieved by the CFTR modulators alone.
- The company plans to initiate a Phase 1 study this quarter. Preliminary data should be available by mid-year and final results by year end. If the preliminary data are favorable, a Phase 2 study will be initiated in H2. Proof-of-concept data should be available in H1 2017.
- 2015 Financials (9 mo.)($M): Revenues: 3.1 (-19.7%); Operating Expenses: 21.3 (+45.3%); Net Loss: (15.4) (+33.0%); Cash Burn: (12.9) (-124.7%).
- Bannockburn, IL-based AveXis (Pending:AVXS) is set for its IPO of 4.25M shares of common stock at $19 - 21.
- The clinical stage gene therapy firm develops treatments for rare and life-threatening genetic neurological disorders. Its lead product candidate is Phase 1-stage, Fast Track- and Orphan Drug-tagged AVXS-101 for the treatment spinal muscular atrophy (SMA) Type 1, caused by a defect in the SMN1 gene. SMA Type 1 is the leading genetic cause of infant mortality. It occurs in one in 10K live births.
- AVXS-101 delivers a fully functional SMN gene into target motor neuron cells via a non-replicating adeno-associated virus capsid (protein shell of a virus), called AAV9, without modifying the existing DNA of the patient. AAV9, unlike other capsids, crosses the blood-brain barrier, enabling intravenous administration.
- The company intends to dialogue with the FDA in the coming months to discuss a development path for AVXS-101 for the treatment of SMA Type 1. If all goes well, pivotal trials supporting marketing applications may be initiated in H1 2017.
- 2015 Financials (9 mo.)($M): Operating Expenses: 25.4 (+115.9%); Net Loss: (25.3) (-110.0%); Cash Burn: (6.3) (-80.0%).
- Honest Company is prepping for an IPO, according to Bloomberg.
- The online shopping startup was co-founded by actress Jessica Alba.
- Sources indicate a funding round last year pegged Honest with a $1.7B valuation.
Thursday, February 4, 2016
- The two biotechs that debuted yesterday flexed some encouraging muscle, giving investors a bit of hope that 2016's malaise may be ending.
- Gene editing firm Editas Medicine (NASDAQ:EDIT), priced at $16 (range: $16 - 18) and closed at $18.20 (+14%) on 4.2M turnover.
- Immuno-oncology outfit BeiGene (NASDAQ:BGNE) priced at $24 (range: $22 - 24) and finished at $28.32 (+18%) on 2.1M turnover.
- Previously: Editas Medicine debuts tomorrow (Feb. 2)
- Previously: BeiGene on deck for IPO (Jan. 20)
Wednesday, February 3, 2016
- The IPO market is off and running after taking the month of January off.
- Chinese biotech BeiGene (NASDAQ:BGNE) priced its offering at $24 (high end of range) and Editas Medicine (NASDAQ:EDIT) priced at $16 (low end).
- Both stocks are up solidly in opening trading.
- Last night, Petco Holdings officially pulled its IPO due to a private equity buyout.
- Previously: Crickets in the IPO market (Jan. 29 2016)
- Related ETFs: IPO, IPOS, FPX, FPXI.
Tuesday, February 2, 2016
- Editas (Pending:EDIT) prices 5.9M shares at $16, bottom of indicated range of $16-18.
- Source: Reuters citing sources.
- Many biotech observers will gauge the state of the business by how Editas Medicine (Pending:EDIT) behaves tomorrow in its debut at $16 - 18. A strong showing should boost morale.
- The company is a leader in the nascent field of direct gene editing using CRISPR Cas9 which bulls profess has the potential to cure many inherited diseases.
- Previously: Leading gene editing firm Editas Medicine on deck for IPO (Jan. 25)
Friday, January 29, 2016
- January is just hours away from being the first month since September of 2011 that no new issuer has come to the IPO market, notes Ipreo Capital Markets.
- The only recent activity has been Ballast Point pulling its IPO after being acquired and AmeriQuest postponing an offering due to market instability.
- Related ETFs: IPOS, FPXI, FPX, IPO.
Wednesday, January 27, 2016
- Ballast Point Brewing & Spirits (Pending:PINT) officially cut short its plan to go public with an IPO.
- The brewer filed last year to raise up to $173M in an offering only to see Constellation Brands (NYSE:STZ) sweep in with a lush takeover offer.
- SEC Form RW
- Previously: Constellations Brands acquires craft brewer Ballast Point (Nov. 16 2015)
Tuesday, January 26, 2016
- Ness Ziona, Israel-based Mapi-Pharma (MAPI) is set for its IPO of 3.125M ordinary shares at $15 - 17.
- The clinical stage firm develops improved extended-release formulations of existing drugs which it refers to as product life cycle management or LCM. Its LCM products offer advantages over currently marketed versions such as improved patient compliance and reduced side effects while allowing for extended patent and regulatory exclusivity.
- Lead product candidates include a once-monthly injection formulation (glatiramer acetate depot) of Teva Pharmaceutical Industries' (TEVA -0.3%) COPAXONE (glatiramer acetate) which is dosed 3x/week; an extended-release formulation (pregabalin ER) of Pfizer's (PFE +0.1%) LYRICA (pregabalin)(dosed 2-3 times per day) and a once-monthly depot formulation of J&J's (JNJ +1.8%) RISPERDAL CONSTA (risperidone) which is administered once every two weeks.
- 2015 Financials (9 mo.)($M): Collaboration revenue: 0.6 (+999%); Operating Expenses: 4.5 (-16.6%); Net Loss: (6.3) (-120.0%); Cash Burn: (0.6) (+86.6%).
Monday, January 25, 2016
- A lot of eyes are on Cambridge, MA-based Editas Medicine (Pending:EDIT) as it prepares for its IPO of 5.9M shares of common stock at $16 - 18.
- The genome editing firm aims to treat, possibly cure, some of the estimated 6,000 genetically defined diseases by correcting the specific mutated/missing genes. Its editing technology, CRISPR Cas9, is the "next big thing" in biotech because of its unprecedented precision in editing DNA. CRISPR the acronym for "clustered, regularly interspaced short palindromic repeats" uses RNA to guide the molecular scissors, the Cas9 enzyme, to a specific DNA sequence where it makes a specific cut in the DNA and triggers the cell's DNA repair machinery to address the genetic defect.
- The company's platform consists of four interrelated components: nuclease engineering, delivery, control and specificity and directed editing. They are designed to develop medicines for a wide range of genetic targets, safely reach the site of disease, tightly control the editing process and drive the correct genetic repair. The Cas9-guide RNA complex has the potential to work on almost any site in the human genome.
- The company also believes CRISPR Cas9 can improve the efficacy of cellular therapies. In May 2015, it entered into a collaboration with Juno Therapeutics (NASDAQ:JUNO) to discover and develop next generation engineered T cell therapies.
- 2015 Financials (9 mo.)($M): Collaboration Revenue: 0.8 (+999%); Operating Expenses: 23.8 (+202.3%); Net Loss: (60.6) (-613.6%); CF Ops: 2.6 (+149.6%).
- Update: Stock starts trading Wednesday, February 3.
Friday, January 22, 2016
- Station Casinos plans to change its corporate name to Red Rock Resorts ahead of its IPO scheduled for June. The casinos will still be run out of an operating unit under Red Rock called Station Casinos.
- The casino operator has seen post-bankruptcy annual revenue growth of 18% since 2011.
- Shares of Red Rock will trade on the Nasdaq.
- Previously: Stations Casinos preps for another pubic run (Oct. 14 2015)
- Previously: Station Casinos a step closer to IPO (Nov. 23 2015)
Wednesday, January 20, 2016
- Elevate Credit (Pending:ELVT) -- which was set to become the first IPO of the year -- has postponed its offering, in a roiling market.
- The Fort Worth-based company, focused on credit solutions for non-prime customers, was set to price its offering tomorrow.
- It was expected to offer 3.6M shares in a range of $20-$22, impying a market cap of $708M at the midpoint.
- It had reported $300M in revenue for the first nine months of 2015.
- Related: Elevate Credit IPO: Consider A Modest Allocation, Despite Uncertain Environment (Jan. 20 2016)
- Related: Don't Get Too Excited About The Elevate Credit IPO (Jan. 13 2016)
- Related: Could Elevate Credit Get An Elevated IPO From Its Growth? (Nov. 16 2015)
- Beijing, China-based and Cayman Islands-domiciled BeiGene (Pending:BGNE) is set for its IPO of 5.5M American Depositary Shares (ADSs) at $22 - 24 per ADS. Each ADS represents 13 ordinary shares.
- The biopharmaceutical firm develops molecularly targeted and immuno-oncology drugs for the treatment of cancer based on its proprietary cancer biology platform that focuses on tumor-immune system interactions. Its pipeline includes PD-L1 inhibitors as well as candidates targeting BTK, RAF dimer and PARP.
- Its most advanced candidates are BGB-3111 for the treatment of B-cell malignancies and BGB-283 for the treatment of cancers with mitogen-activated protein kinase (MAPK) pathway aberrations, including BRAF mutations and certain KRAS/NRAS mutations. Both are in early-stage development to determine the optimal dosages.
- 2015 Financials (9 mo.)($M): Collaboration Revenues: 4.1 (-64.5%); Operating Expenses: 34.5 (+64.7%); Net Loss: (29.9) (-101.6%); CF Ops: (23.1) (-999%).
- The IPO market has been relatively quiet for the first two weeks of 2016 amid market turmoil as a number of companies on the IPO watch list (Univision, Neiman Marcus, Albertsons) remain in a holding pattern for their official filing. No deals price this week and no deals over $300M are expected for the next two per Ipreo Capital Markets.
- A risk-off sentiment has hurt the Renaissance IPO ETF (NYSEARCA:IPO) which has doubled the loss of the S&P 500 so far this year with a 15% drop.
- Related ETFs: FPX, IPOS, FPXI.
Tuesday, January 19, 2016
- Houston, TX-based PLx Pharma (PLXP) is set for its IPO of 3.8M shares of common stock at $17 - 19.
- The late-stage specialty pharmaceutical firm develops safer and more effective aspirin products based on PLxGuard, its delivery system which enables the release of active drug ingredients into the small intestine immediately below the stomach (duodenum) instead of into the stomach itself. According to the company, this improves absorption and minimizes unwanted gastrointestinal side effects, such as erosions, ulcers and bleeding, that are associated with aspirin and ibuprofen.
- It has one FDA-approved product, PL2200 Aspirin 325 mg, a liquid-fill aspirin capsule generally targeted for over-the-counter distribution, but via prescription when recommended for cardiovascular disease treatment and prevention.
- Pipeline candidates include two aspirin formulations, two ibuprofens, one diclofenac and one indomethacin.
- 2015 Financials (9 mo.)($M): Grant/License Revenue: 0.2 (-2.2%); Operating Expenses: 3.5 (-17.9%); Net Loss: (3.3) (-18.6%); Cash Burn: (7.6) (-52.7%).
Thursday, January 14, 2016
- Chobani has drawn the ire of yogurt rivals for new advertisements highlighting the use of artificial preservatives in Yoplait and Dannon products.
- General Mills (NYSE:GIS) and Danone (OTCQX:DANOY) have both fired off legal actions over claims they say are misleading.
- One ad points outs that Dannon additive Sucralose has chlorine added to it, while another highlights that Yoplait features Potassium sorbate which is also used to kill bugs.
- Chobani has worked its ways back on to the IPO watch list.
Friday, January 8, 2016
- Toys "R" Us reports same-store sales rose 2% during the holiday season. The U.S. comp was +1.4%, while international same-store sales increased 3.1%.
- The company says sales of electronics and in the video game hardware/software categories were negative.
- Toys "R" Us is one of the larger chains on the IPO radar after it hired IPO vet David Brandon as CEO.
- Toys "R" Us press release
Friday, December 25, 2015
- Four technology startups with billion-dollar-plus valuations are getting ready for initial public offerings in early 2016, following one of the slowest technology IPO years on record.
- While market conditions could alter their plans, Nutanix (Pending:NTNX), Okta (Pending:OKTA), Twilio (Pending:TWILO) and Coupa Software (Pending:CSOFT) are in various stages of preparing to go public, and their performance could signal whether investors are once again willing to pay premium prices for startup IPOs.
- According to Dealogic, tech and Internet companies that went public in the U.S. raised $9.5B in 2015, down from $40.8B in 2014, while the number of IPOs in the sector dropped by more than half, to 29 from 62.
Wednesday, December 23, 2015
- Renaissance Capital reports that 169 IPOs raised $30B in 2015 to mark a six-year low for IPO action. Last year, 275 deals generated over $85B in proceeds.
- The biotech sector was one of the only pockets of high IPO activity during a very weak second half of the year. Tech IPOs were downright scarce, with proceeds down 87% Y/Y.
- The average aftermarket return of -15.4% is the worst performance for IPOs since 2011.
- Notable IPOs on file for a potential 2016 debut include Neiman Marcus Group (Pending:NMG), Univision (Pending:UVN), Albertsons (NYSE:ABS), Vizio, SoulCycl (OTCQB:SOUL), and Station Casinos. Most analysts don't expect Federal Reserve rate increases to be a huge factor as companies weigh when to file.
- An IPO watchlist from Renaissance Capital of private companies includes Uber (Pending:UBER), Dropbox (Pending:DROPB), US Foods, MGM Growth Properties (MGM's REIT), and Airbnb (Pending:AIRB).
- Related ETFs: FPX, IPO, IPOS, FPXI.
Tuesday, December 22, 2015
- Nutanix, a maker of integrated server/storage systems for web-scale data centers and a Silicon Valley darling, has filed to go public under the symbol NTNX. For those interested, IPO underwriters include Goldman, Morgan Stanley, JPMorgan, Baird, Needham, Credit Suisse, and Pac Crest. (prospectus)
- Nutanix was valued at $2B+ in a 2014 funding round. The company's modular hardware is pooled into a fabric called Acropolis, and comes with management software called Prism and integrated virtualization software based on the open-source KVM platform. The company argues its offerings significantly lower space and power needs relative to infrastructures relying on standalone servers and storage arrays, while also cutting deployment times, virtualization costs, and IT admin costs.
- The company had October quarter revenue of $87.8M (+90% Y/Y), and a net loss of $38.6M. FY15 (ended in July) revenue totaled $241.4M (+90% Y/Y), and net loss $126.1M. Customers, many of whom want to run web-scale data centers similar to Amazon and Google but without developing their own hardware and software, totaled ~2,100 at the end of October. The list includes Kellogg, Best Buy, Nasdaq, Toyota, the DoD, and Yahoo Japan.
- Reuters reported in April Nutanix was working on an IPO. The recent cool-off in the tech IPO market may have led the company to delay its efforts.
- VMware (NYSE:VMW), whose core vSphere server virtualization platform is challenged by Nutanix's offerings, launched a rival converged hardware platform called EVO: RAIL last year. It's offered by OEM partners such as EMC, Dell, NetApp, and Hitachi.
- Thinly traded small cap Seres Therapeutics (MCRB -0.9%), already down almost 16% from Thursday's peak of $44.51, could surrender more ground considering tomorrow's expiration of the IPO lockup period that will release 30.4M shares. There are currently 39.1M shares outstanding (as on Nov. 6).
- 18M shares are held by insiders.
Monday, December 21, 2015
- Toys "R" Us is still on the IPO path, despite previous failures of PE-owner Bain Capital to bring a public launch to the finish line.
- Bain has given CEO David Brandon an incentive package that includes a $37.5M payment if the company can bring in $600M in EBITDA, a mark that it isn't that far off.
- The huge success of the new Star Movie might be enough to take Toys "R" Us over the top with Star Wars-related products bringing in lush margins for the toy seller.
Friday, December 18, 2015
- After pricing its 7.5M-share IPO at $10 (the middle of $9-$11 range), Yirendai (NYSE:YRD) opened at $10.00 but has since fallen 12.5% to $8.75.
- The Chinese online P2P lending platform is valued at $513M. Yirendai had revenue of $138M over the first 9 months of 2015, and net income of $30.8M. It claims 6.7M+ registered users, 99K borrowers, and 186K investors/lenders for its platform, and has facilitated $1.38B worth of loans over its history. Baidu has a stake.
- U.S. peer LendingClub (LC -6.6%) is also having a rough day amid a 1.2% Nasdaq drop. With the Fed's rate hike placing some investors on edge, LendingClub is now down 17% on the week.
- Prospectus, IPO analysis
Thursday, December 17, 2015
- Two months after the WSJ reported Dell's SecureWorks unit had confidentially filed for an IPO, a public S-1 has been released. The security services firm plans to list on the Nasdaq under the symbol SCWX. For those interested, IPO underwriters include BofA/Merrill, Morgan Stanley, JPMorgan, Barclays, Citi, Credit Suisse, RBC, and UBS.
- For the 9 months ending Oct. 30, SecureWorks had revenue of $245.4M (+28% Y/Y) and a $57.5M net loss. In FY15 (ended Jan. '15), the company had revenue of $262.1M (+27% Y/Y) and a $38.5M net loss.
- SecureWorks had 4,100+ clients in 61 countries as of Oct. 30. Gartner includes the company in its Managed Security Services "Leaders" quadrant. Rivals include IT giants such as IBM, HP, and Cisco, security tech firms such as FireEye, Palo Alto Networks, and Symantec, and telcos such as AT&T, Verizon, and BT.
- The WSJ previously reported hearing from SecureWorks could be worth as much as $2B, and that Dell (though looking to raise cash to help pay for the EMC deal) doesn't plan to sell any shares through the IPO, whose proceeds could be used to help pay for acquisitions.
- Gillette files a patent infringement suit against Dollar Shave Club.
- The legal action cites an unauthorized use of patented technology by the razor upstart. Damages and an injunction are asked for in the initial petition.
- Dollar Shave Club has disrupted the textbook razor-and-blades pricing model a bit this year through its online subscription service. Online sales of razor blades have doubled this year, although still account for only about 9% of all sales.
- There has been some VC backing of Dollar Shave Club and it's considered an IPO candidate.
- The Gillette brand is one of the crown jewels of Procter & Gamble (NYSE:PG).
Wednesday, December 16, 2015
- Yogurt sales have picked up dramatically in the U.S., according to fresh Nielsen data. The trend is toward accelerating growth.
- 4-week growth: +9.2% Y/Y.
- 13-week growth: +7.4% Y/Y.
- 26-week growth: +6.1% Y/Y.
- Making the strongest move with market share is Chobani, up to its highest percentage ever of total U.S. yogurt sales at 19.4%. The Chopani Flip brand has been a strong driver of the recent growth. Chobani was a hot IPO prospect before running into some growing pains on the manufacturing side.
- Dannon (OTCQX:DANOY) and Yoplait (NYSE:GIS) are both making strides as well at the expense of smaller brands.
- The strong pick-up in yogurt sales missed the PepsiCo-Muller JV which announced its exit from the category earlier this week.
Thursday, December 10, 2015
- SoulCycle (SLCY) files a new S-1 as it preps for its IPO.
- Revenue for the 9-month period ending on September 30, 2016 was $117.66M. Operating expenses for the period came in at $95.5M.
- Same-studio sales were up 8%.
- The company didn't divulge any pricing terms in the filing.
- Updated S-1 filing
- After pricing its 22M-share IPO at $21, Atlassian (NASDAQ:TEAM) has opened at $27.67 and is currently at $27.45, up 30.7%.
- The provider of collaboration/chat software for office workers, software developers, and IT pros is officially valued at $5.7B, or a lofty 18x FY15 (ended June '15) sales. After factoring options/restricted stock units, Atlassian is worth over $7B on a fully diluted basis.
- Prospectus, IPO analysis
- Prior Atlassian coverage
Wednesday, December 9, 2015
- Atlassian (Pending:TEAM) has priced its 22M-share IPO at $21, above an elevated $19-$20 range. Shares begin trading tomorrow.
- The Australian collaboration software provider raised $462M and is officially valued at $4.38B, or a steep 14x FY15 (ended June '15) sales. On a fully-diluted basis, Atlassian is worth $5.53B.
- Prospectus, IPO analysis
- Previously: Atlassian's products, customers, and recent performance
- Shares in six newly listed Chinese companies started trading today after a five-month hiatus for initial public offerings.
- The companies had filed to go public between February and June, but the government had banned new share sales in July in an effort to stem a plunge in the markets. The move created an IPO backlog of nearly 700 companies.
- Under current rules, buyers must back their order with cash up front, even though the entire share order is unlikely to be filled.
Monday, December 7, 2015
- Blue Coat Systems, provider of a variety of Web security, thread-detection, and incident response products (both hardware and software) and related services, is talking with banks about an IPO, according to both Bloomberg and Reuters. Bloomberg's sources state an offering could arrive by Q2 2016.
- Blue Coat was taken private for $1.3B in 2012 by P-E firm Thoma Bravo, and sold to Bain Capital in March for $2.4B. The market for security tech IPOs (and tech IPOs in general) has cooled off some since early 2015. However, corporate IT security spend continues growing at a healthy clip, as enterprises continue reacting to dozens of publicized security breaches.
- Today's reports come less than a week after Dell's SecureWorks security services unit confirmed it's planning an IPO. The WSJ previously reported SecureWorks had confidentially filed for an IPO.
- ETF: HACK
- Atlassian (Pending:TEAM) raises the deal size of its IPO to $429M.
- The software company intends to sell 22M shares in a range of $19 to $20 after originally filing to sell 20M shares.
- Update SEC Form F-1
- Previously: Software development/collaboration app provider Atlassian files for IPO (Nov. 09 2015)
Wednesday, December 2, 2015
- A number of expected IPOs are likely to be pushed back into 2016 due to the recent weak stretch in the retail sector and some lackluster IPO debuts.
- The latter half of December is typically a dead time for IPOs anyway.
- Renaissance Capital forecasts that public launches for Neiman Marcus Group (Pending:NMG), Albertsons (NYSE:ABS), SoulCycle (OTCQB:SOUL), At Home Group (Pending:HOME), and Univision (Pending:UVN) are among those sidelined until the new year.
- Previously: U.S. IPO market on track for slowest year since 2009 (Nov. 30 2015)
Tuesday, December 1, 2015
- Jimmy John's has scrapped plans for an IPO after CEO/founder/majority owner Jimmy John Liauitaud decided to keep his hands firmly in the business.
- There was a buzz earlier in the year over the IPO and road show for the popular sandwich shop known for speed of service and late hours.
- The company still plans to add another 1.3K locations in the U.S. over the next five years.
- Previously: P-E firms itching to get their hands on Jimmy John's (Sep. 16 2014)
- Previously: Reuters: Sandwich chain Jimmy John's readies for IPO (May. 26 2015)
Monday, November 30, 2015
- BATS' first attempt to go public in March 2012 famously crashed after technical issues caused its share price to plunge to pennies just minutes after live trading opened.
- The company is having another go at it, reports the WSJ, and could file with the SEC this month. Instead of listing on the NYSE or Nasdaq, the exchange operator will launch on its own exchange, says the Journal.
- Since 2012, the company has merged with Direct Edge, acquired a currency-trading platform, launched an options exchange, and is becoming a player in ETF listings. Its reported $2B-plus valuation today compares with $745M in 2012.
Friday, November 27, 2015
- Sanofi (NYSE:SNY) is up 1% after hours on news it's working with investment bank Lazard to prepare a sale or listing of Merial, its animal health unit, which could value the division up to €12B (about $12.7B), Reuters is reporting.
- On an investor day Nov. 6, new chief Olivier Brandicourt discussed cost cuts and acquisitions, but hinted at strategic options for unloading Merial and its European generics business due to limited synergies.
- Lazard has a close relationship with Sanofi via the drugmaker's chairman, Serge Weinberg. Sanofi may favor an IPO for the unit to avoid antitrust challenges in selling to a rival, sources told Reuters.
- Merial has about 6,500 employees and expects to exceed €2.4B in sales this year.
- The generics business is worth up to €3B, but any divestment faces a longer path with heavy legal disentanglement ahead, and wouldn't start until the second half of next year.
Wednesday, November 25, 2015
- Jerusalem, Israel-based Kitov Pharmaceuticals (NASDAQ:KTOV) completes its IPO of 3,168,900 American Depository Shares (ADSs) and five-year warrants to purchase up to 3,158,900 ADSs for a combined price of $4.13. Each ADS represents 20 ordinary shares. Each warrant is immediately exercisable at $4.13. Underwriters over-allotment is an additional 473,835 ADSs and/or warrants to purchase an additional 253,761 ADSs at a price of $4.12 and $0.01, respectively.
- The clinical-stage biopharmaceutical firm develops combinations of existing drugs that are in late-stage development. Its pipeline includes KIT-301, a fixed-dose combination of naproxen and isradipine, for the treatment of pain caused by osteoarthritis (OA) without the hypertensive side effects, and KIT-302, a fixed dose combination of celecoxib and amlodipine besylate, also for the treatment of OA-related pain. In the near term, the company is focusing its efforts entirely on bringing KIT-302 to market.
- 2015 Financials (6 mo.)($M): Operating Expenses: 3.1 (+92.0%); Net Loss: (3.2) (-90.8%); Cash Burn: (1.3) (+55.6%).
Tuesday, November 24, 2015
- Vodafone (VOD -0.8%) has been hit by a 20B-rupee charge (about $300M) by India's Supreme Court related to the carrier's plans to consolidate four regional units to bring them public.
- That move will let the merger (and eventually, the IPO) go forward -- but it's an interim step, with an ongoing battle over a larger 69B-rupee charge ($1.04B) from India's telecoms regulator still ahead.
- The telecoms ministry is demanding that payment to allow for the IPO, which Vodafone confirmed it was preparing.
- It's not the first or only monetary dispute, though, as Finance Minister Arun Jaitley suggests the government may take another look at an ongoing $2.6B tax dispute that dates to the 2007 takeover of Hutchison Essar.
- Next step: Vodafone will contest the $1B payment at a meeting of India's Telecom Disputes Settlement and Appellate Tribunal.
Monday, November 23, 2015
- Station Casinos filed its IPO paperwork as it prepares for the long-awaited public offering of shares.
- The company reported net revenue of $1.291B was earned in 2014 and operating income of $237M.
- The S-1 includes a favorable appraisal of the prospects for the Las Vegas gaming market.
- No specific information on shares and pricing was offered up.
- SEC Form S-1
- Previously: Station Casinos files for IPO (Oct. 14 2015)
- Previously: Stations Casinos preps for another pubic run (Oct. 14 2015)
Friday, November 20, 2015
12:00 PM| 12:00 PM | 3 Comments
- Square (SQ +3.3%) is now up 50% from its conservative $9 IPO price, and worth close to $5.5B after factoring employee options. Match Group (MTCH +8.2%) is up 33% from its $12 IPO price, and worth $3.8B.
- Square/Twitter CEO Jack Dorsey made the rounds yesterday. On CNBC, he talked up Square's efforts to expand internationally (the company still depends heavily on the U.S.), as well as a new mobile card reader that supports Apple Pay and EMV (chip-based) card transactions. "We's selling it at $49. We have seen 350,000 pre-orders already ... We want to associate that Square shape with 'you can pay with your phone.'"
- He also argued Square has the potential to reach a chunk of the small businesses (20M in the U.S., 85M globally) that currently don't accept credit cards, and noted his company has advanced over $300M to 40K sellers via its Square Capital service. In a talk with Re/code, Dorsey suggested he wants to resurrect (perhaps through the Square Cash app) Square Wallet, which allowed users to order from stores in advance through a mobile app, and pay by simply saying their name at the register.
- Meanwhile, Match chairman Greg Blatt has further distanced his company from a less-than-flattering interview of Tinder CEO Sean Rad. "It's a silly and unfortunate article. I think there are a lot of inaccuracies there and a lot of things taken out of context, and I actually think there's some corrections being made,"
- Prior Square coverage. Prior Match coverage
- Square IPO analysis. Match IPO analysis.
- So how did Square (NYSE:SQ) and Match Group (NASDAQ:MTCH) fare on their first day of trade? After slashing its offering price to $9 a share, Square soared 45% to $13.07, showing that investors still crave new tech investments - at the right price.
- Match Group, the owner of dating services such as Tinder, OkCupid and Match.com, climbed 23% to $14.74, after being valued at the bottom of its expected range.
- Previously: Square trades soundly above IPO price (Nov. 19 2015)
- Previously: Match Group higher following IPO (Nov. 19 2015)
Thursday, November 19, 2015
- After pricing its 7.75M-share IPO at $10 (the low end of a $10-$12 range), Mimecast (NASDAQ:MIME) opened at $11.00 and is now at $10.89, up 8.9%.
- The cloud e-mail security and file-archiving software provider is worth $588M, or 5.1x FY15 (ended in March) sales. Investor enthusiasm for both cybersecurity plays and tech IPOs has cooled a bit since Rapid7 soared in its July debut.
- ETF: HACK
- Prospectus, Mimecast IPO analysis
- Earlier: Mimecast's IPO pricing and recent sales/profits
- After pricing its 33.3M-share IPO at $12 (the low end of a $12-$14 range), Match Group (NASDAQ:MTCH) opened at $13.50 and is now at $13.10, up 9.2%.
- The dating site owner and Tinder parent is worth $3.14B, or ~3x trailing sales. InterActiveCorp (IACI -0.5%), which has an 86.1% post-IPO stake, is down slightly.
- Prior Match Group coverage
- Prospectus, IPO analysis
- After pricing its 27M-share IPO at $9 (below an $11-$13 range), Square (NYSE:SQ) opened at $11.20 and is now at $12.11, up 34.6%.
- The provider of mobile card readers and payment-processing/merchant services is worth $3.91B, or close to 10x forward adjusted revenue (backs out transaction cost revenue and sales related to the soon-to-be-finished Starbucks deal).
- Prior Square coverage
- Prospectus, IPO analysis
- Update: VentureBeat observes Square's valuation is closer to $5B after factoring unexercised employee stock options.
- Square (NYSE:SQ) is indicated to open above its $9 IPO price (below a prior $11-$13 range).
- The indicated pricing spells a valuation range of $3.39B-$3.71B ... not counting the estimated $93M in stock Square will have give out to private investors to give them a 20% return (relative to the IPO price) on their 2014 investments.
- Prior Square coverage
Prospectus, IPO analysis
- Cloud e-mail security/file-archiving software vendor Mimecast (NASDAQ:MIME) has priced its 7.75M-share IPO at $10, the low end of a $10-$12 range. That spells a valuation of $540M, or a moderate 4.7x FY15 (ended in March) sales. Shares begin trading today.
- Mimecast had FY15 revenue of $116.1M (+31% Y/Y), and net income of $285K. For the 6 months ending Sep. 30, the company had revenue of $67.8M (+22% Y/Y), and a net loss of $81K. The company has 600+ employees, and claims to "serve approximately 15,200 customers and protect millions of their employees across the world."
- Reuters reported in March Mimecast was eying an IPO at a $1B+ valuation. However, the tech IPO market has cooled considerably since then..
- Prospectus, IPO analysis
Wednesday, November 18, 2015
- Amid a cooling tech IPO market, Match Group (Pending:MTCH) has priced its 33.3M-share offering at $12, the low end of a $12-$14 range. That spells a valuation of $2.9B, with parent InterActiveCorp's (NASDAQ:IACI) 206.7M-share (86.1%) stake worth $2.5B. Shares begin trading on Thursday.
- Match, the parent of Match.com, OkCupid, PlentyofFish, Tinder, and The Princeton Review, is raising $400M. Underwriters hold a 5M-share overallotment option.
- Ahead of the IPO, Tinder CEO Sean Rad provided a cringe-inducing interview to the London Evening Standard. Match went out of its way to publish an SEC filing stating the interview "was not approved or condoned by, and the content of the article was not reviewed by, the Company or any of its affiliates."
- Prior Match Group coverage
- Prospectus, IPO analysis
- In keeping with reports swirling today, Square (NYSE:SQ) has priced its IPO at $9 per share, below its $11-$13 range.
- The company had raised money from private investors in its Series E round last year at even more, $15.46/share.
- The pricing implies a value of $2.91B; the $11/share at the low end of its range implied a value of $3.66B.
- Previously: CNBC: Square could price IPO below range (Nov. 18 2015)
- CNBC reports Square (NYSE:SQ) could price its 25.65M-share IPO below an $11-$13 range this evening.
- As it is, the low end of Square's range spells a valuation of $3.66B, well below the $6B valuation Square received in a 2014 funding round. Concerns about Square's heavy losses have weighed, and public investors have increasingly been less generous in the valuations they grant high-growth/loss-producing tech companies than late-stage private investors.
- Prior Square coverage
- Square (NYSE:SQ) is due to price its NYSE IPO later today in an offering that's being closely watched for what it means for the potential listings of other "unicorn" tech companies - those worth over $1B - such as Airbnb (Pending:AIRB) and Dropbox.
- Amid a difficult market for tech IPOs this year, Square set its price range at $11-13 a share, valuing the company at up to $4.2B, or 30% below its worth in a private fundraising round a year ago. Trading in the firm's shares is scheduled to start on Thursday.
- With some nice timing, the WSJ reports that the SEC is looking into whether mutual funds accurately value their holdings in privately held tech startups.
Friday, November 13, 2015
- After pricing its 4.4M-share IPO at $16 (the low end of a $16-$18 range), Instructure (NYSE:INST) opened at $16 and has since risen to $17.08, good for a 6.8% gain.
- The cloud education software provider is valued at $450M. Revenue for the first 9 months of 2015 totaled $51.4M (+68% Y/Y), net loss $40.9M, and free cash flow (typically lower than net loss for growing cloud software firms) -$11.4M. Operating expenses totaled $74.2M, with $38.3M spent on sales/marketing.
- Prospectus, IPO analysis
Thursday, November 12, 2015
- LoanDepot (NYSE:LDI), which was set to price its IPO tonight, won't be pricing as expected, Dow Jones reports.
- The company, which offers nonbank consumer lending for individual members in the U.S., is planning to raise $510M in the offering (30M shares, at an expected price of $16-$18).
- It had filed for the IPO on Oct. 8.
- Related: LoanDepot IPO Looks Attractive This Week, Next To Early Stage Healthcare Deals (Nov. 11 2015)
- Related: Borrowing For The loanDepot IPO? (Oct. 30 2015)
Wednesday, November 11, 2015
- At an investment conference in Barcelona, Telefonica (TEF +1.1%) finance chief Angel Vila reaffirmed the company's commitment to staying in the Mexican market and even floating public shares for its unit there.
- "We have been in Mexico for so many years, investing so much money, and now that it's starting to fly and make money, it would be strange for us to leave now," he said. "It's a growing business that could be attractive for an initial public offering."
- Telefonica this week received a record fine of 410.9M pesos (about $25M) over call quality at its Pegaso wireless unit. Telefonica's market share in Mexico is about 20% -- well behind the 70% of America Movil, the initial target of newly tough Mexican regulations.
- Vila expressed confidence that the company's sale of its UK unit, O2, to Hutchison (OTCPK:HUWHY) would go forward despite a tougher regulatory regime in the EU as well: "We're optimistic because Hutchison has experience in negotiating other deals with (the European) Commission ... Also we think that Hutchison is quite keen in achieving the transaction that will allow them to be in a much better competitive position in the UK market."
- Previously: Mexico imposes record fine on Telefonica unit over quality controls (Nov. 09 2015)
- Witchia-based Equity Bancshares (NASDAQ:EQBK) is at $23.85 in early action after pricing its 1.94M share IPO at $22.50 each (versus the hoped-for midpoint of $23). 1.6M shares were sold by the company, and the rest by selling stockholders.
- Related: IPO Preview: Equity Bancshares (Nov. 11)
- WAVE Life Sciences (NASDAQ:WVE) prices its IPO of 6.375M ordinary shares at $16. Underwriters over-allotment is an additional 956,250 shares. Trading commences today on the Nasdaq Global Market.
- The original offering was 5M ordinary shares at $15 - 17.
- Previously: Wave Life Sciences on deck for IPO (Nov. 2)
Tuesday, November 10, 2015
- Electronics seller Monster Inc. (MSDI) files for a $30M IPO.
- The company reported revenue of $11.343M in 2014 and a very narrow gross margin rate with the costs of good sold at $11.109M.
- Monster is best known for its digital memory products.
- SEC Form S-1
Monday, November 9, 2015
- Atlassian, a provider of collaboration tools for software development teams, IT workers, and business workers in general, has filed to go public under the symbol TEAM. The IPO underwriters: Goldman, Morgan Stanley, UBS, Allen & Co, Jefferies, Canaccord, Raymond James, JMP, and William Blair. (prospectus)
- Atlassian's products include Jira Software (software project planning/tracking), Jira Service Desk (IT service desk portal), Confluence (document collaboration), HipChat (private corporate chat), and Bitbucket (code collaboration). As of Sep. 30, the company had over 51K customers and 5M monthly active users.
- Major clients include Bayer, PayPal, Adobe, Cisco, Visa, BMW, and Lowe's. Rivals include Microsoft, IBM, Google, ServiceNow, and Salesforce. Atlassian's HQ is in Sydney, but the company is incorporated in the U.K.
- Calendar Q3 revenue totaled $101.8M (+50% Y/Y), and net income $5.1M. FY15 (ended June 30) revenue totaled $319.5M (+49% Y/Y), and net income $6.8M.
- With products like Rise, Elastic, and Sunny, Elevate Credit has provided about $1.2B of non-prime loans (credit scores < 700) to roughly 450K U.S. and U.K. customers.
- 2014 revenues of $274M were up 280% Y/Y. Revenues for the nine months ending this September grew 67% from the same period a year earlier. The operating loss was $4M for the 2015's first nine months, $51M during the same period a year ago.
- A placeholder offering size of $100M has been entered. The stock will trade in the Big Board under the symbol ELVT.
- InterActiveCorp's (IACI -0.8%) Match Group (Pending:MTCH) has set a $12-$14 IPO price range. That spells a valuation range of $2.9B-$3.4B. (prospectus)
- Match, parent of Match.com, OkCupid, PlentyofFish, Tinder, and The Princeton Review, is looking to sell 33.3M new shares (proceeds of $400M-$467M), with underwriters having a 5M-share overallotment option. IAC (current market cap of $5.9B) stands to have an 86.1% post-IPO stake.
- Prior Match Group coverage
Friday, November 6, 2015
- Sole Elite Group (Pending:SOLE) reduced the range of its IPO to $5.50 to $7.00 from a prior level of $10 to $12. The company also added one warrant for each share purchased in the IPO which can be exercised at 120% of the IPO price.
- Updated SEC Form F-1
- Previously: Sole Elite Group sets IPO terms (Aug. 12 2015)
- The company is looking to sell 25.6M shares at a price range of $11-$13 each. A selling shareholder is unloading another 1.35M shares in the IPO as well.
- The stock will trade on the NYSE under the symbol SQ.
- At the high end of that price range, the market cap would be $4.19B.
- Recent financial results are here.
- China will lift a four-month ban on new stock listings after it "improves" relevant policies, the Xinhua News Agency reported, citing the country's securities regulator.
- Although Xinhua offered no further details, local media suggested that 28 IPOs that had been approved but were suspended would materialize by the end of the year.
- China imposed the ban on IPOs in early July after the country's stock market lost over 40% in a gigantic summer rout.
Wednesday, November 4, 2015
- Canadian Solar (CSIQ +2.5%) has confidentially submitted an S-1 for a YieldCo vehicle. Details about the offering's size and pricing haven't been determined.
- A Canadian YieldCo has been expected for a long time. However, investor appetite for solar YieldCos has softened this year - both SunEdison's TerraForm Global (NASDAQ:GLBL) and First Solar/SunPower's 8point3 Energy (NASDAQ:CAFD) are trading well below their 2015 IPO prices.
Tuesday, November 3, 2015
- Japan Post launched the largest IPO in the world this year with investors snapping up shares of Japan Post Bank, Japan Post Insurance, and Japan Post Holdings in Tokyo on Wednesday.
- The government of Japan raised approximately ¥1.44T ($12B) from the triple IPO.
- The privatization of the large government institutions is seen as a critical part of Prime Minister Shinzo Abe's efforts to turn savers in the nation into investors.
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