Today - Wednesday, October 26, 2016
- October 12 – Goldman Sachs, Morgan Stanley to reportedly run Snap IPO
- October 6 – WSJ: Snap Inc. preparing for IPO, $25B valuation cited
- Though valuations fluctuate and an IPO for Snap (Private:CHAT) is at this point unconfirmed, an up to $4B raise, $25B-$40B valuation range and early-2017 timeline mark the most recent headline metrics.
- ZTO Express (Pending:ZTO) is expected to launch its IPO this week.
- The company set a pricing range of $16.50 to $18.50 for the public offering of 72.1M shares.
- The ZTO Express IPO is expected to the largest of the year, with the express shipper set to bring in $1.261B at the midpoint of the range.
- SEC Form F-1
- Seeking Alpha contributors are already deep into the numbers with their analysis.
- REV Group (REVG) files for an IPO.
- The placeholder amount listed on the filing is $100M.
- The specialty vehicle maker reported revenue of $1.735B and net income of $22.88M in 2015.
- REV on its market: "We believe that a growing aged population, longer life expectancy, urbanization and the increasing use of emergency vehicles for non-critical care transport are all positive trends for the ambulance market."
- SEC Form S-1
Friday, October 21, 2016
- Netherlands-based cable-TV operator Altice (OTCPK:ALLVF) is exploring the idea of an IPO for its U.S. unit, Reuters reports.
- Altice USA, which bought Cablevision and Suddenlink Communications over the last year or so, is worth $25-30B and could look to raise almost $2B.
- The move would provide Altice USA with currency - money and stock - to finance further expansion, such as by acquiring midsize players in deals that would be expected to receive antitrust clearance.
Thursday, October 20, 2016
- San Francisco, CA-based iRhythm Technologies (Pending:IRTC) shows that its timing is spot on in its first day of trading. Shares are up 56% from the $17 offer price on turnover of 5.5M. The IPO closing date is October 25.
- The original offering was 5.35M common shares at $13 - 15 but was increased to 6,294,118 shares at $17.
- Read now IPO Preview: iRhythm Technologies
Wednesday, October 19, 2016
- In a surprising development, CRISPR Therapeutics (Pending:CRSP) downsizes its IPO to 4M common shares from 4.7M and drops the price to $14, below the original range of $15 - 17. Underwriters over-allotment is an additional 600K shares. Closing date is October 24. Trading begins today.
- The company was co-founded by one of the CRISPR/Cas9 discoverers, Emmanuelle Charpentier. The technology is the "next big thing" in biotech. Investors will want to keep an eye on this one, along with Editas Medicine (NASDAQ:EDIT) and Intellia Therapeutics (NASDAQ:NTLA).
- Alibaba (NYSE:BABA) affiliate Ant Financial, which operates the Alipay payments service and is valued at $60B, is "closer to an initial public offering," CNBC reports.
- There has been much media speculation that Ant has pushed back the hotly anticipated flotation to 2017 from 2016, although CNBC's source says that the company hasn't set a timetable as it's in a long line of firms waiting for approval from Chinese authorities to list.
- Alipay has 450M active users and processes 170M transactions a day.
Monday, October 17, 2016
- Ra Pharmaceuticals (Pending:RARX) is set for its IPO of 5.8M shares of common stock at $12 - 14.
- The biopharmaceutical firm utilizes its peptide chemistry platform to develop therapies to treat disorders caused by excessive or uncontrolled activation of the complement system, an essential component of the immune system. Complement system overactivation plays a key role in immune and inflammatory diseases.
- Its lead product candidate is RA101495, a subcutaneous injection formulation for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder in which the complement system attacks and destroys red blood cells. A Phase 2 study is set to begin in Q1 with top-line data expected in H2 2017. A Phase 2 study in refractory generalized myasthenia gravis and a Phase 1b in lupus nephritis should commence in H2 2017.
- RA101495 is a synthetic macrocyclic peptide (ring-shaped chain of amino acids) that inhibits complement component 5 (C5), which plays a key role in the rupture and destruction of red blood cells.
- 2016 Financials (6 mo.)($M): Revenue: 4.9 (+126.4%); Operating Expenses: 13.8 (+82.7%); Net Loss: (9.9) (+81.0%); Cash Flow Ops: (5.3) (-1.3%).
- Myovant Sciences (Pending:MYOV) is set for its IPO of 13M shares of common stock at $12 - 15.
- The Bermuda-domiciled biopharmaceutical firm develops therapies for endocrine disorders, principally in women's health. Its lead product candidate is relugolix, an orally available, once-daily small molecule that acts as a gonadotropin-releasing hormone (GnRH) receptor antagonist. Inhibiting GnRH receptors in the pituitary gland reduces circulating luteinizing hormone (LH) and follicle-stimulating hormone (FSH) which lowers estrogen in women and testosterone in men. Lowering these hormones improves the symptoms of uterine fibroids and endometriosis in women and decreases prostate-specific antigen (PSA) in men with advanced prostate cancer.
- Relugolix is set to enter Phase 3 development in Q1 for the treatment of heavy menstrual bleeding associated with uterine fibroids and advanced prostate cancer and in H1 for the treatment of women with endometriosis-associated pain. Top-line data from all three are expected in 2019.
- Its second product candidate is RVT-602, an oligopeptide kisspeptin analog, for the treatment of female infertility as part of assisted reproduction. Kisspeptin is a naturally occurring peptide that stimulates GnRH release which, in turn, stimulates the release of LH and FSH which play key roles in egg maturation. The company says it may be a safer alternative to human chorionic gonadotropin when used to treat female infertility.
- Financials (2/2/16 inception - 6/30/16)($M): Operating Expenses: 18.8; Net Loss: (20.7), Cash Burn: no cash used, expenses were non-cash.
Friday, October 14, 2016
- San Francisco, CA-based iRhythm Technologies (Pending:IRTC) is set for its IPO of 5.35M shares of common stock at $13 - 15.
- The commercial-stage firm claims that it has developed a more effective way to diagnose and monitor cardiac arrhythmias. Its platform is called the ZIO Service, which combines wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The patient wears an unobtrusive biosensor for up to 14 days from which proprietary algorithms distill the data into clinically actionable information.
- The company says its goal is to be the leading provider of first-line ambulatory electrocardiogram (ECG) monitoring for patients at risk for arrhythmias, a condition affecting 11M Americans and 34M people worldwide. Since FDA clearance in 2009, ZIO Service has been provided to more than 500K patients generating over 125M hours of curated heartbeat data, which it claims to be the world's largest.
- 2016 Financials (6 mo.)($M): Revenues: 28.6 (+79.3%); Operating Expenses: 27.3 (+48.7%); Net Loss: (10.6) (-13.0%); Cash Flow Ops: (13.4) (-84.4%).
Wednesday, October 12, 2016
- IPO AzurRx BioPharma (Pending:AZRX) had an anemic day on its debut yesterday. Shares ended up down 9.45% at $4.98 on turnover of only 115.8K.
- The IPO of 960K shares at $5.50 was downsized quite a bit from the original plan of 2,142,857 shares at $6 - 8.
- Previously: AzurRX Biopharma on deck for IPO (Aug. 10)
Friday, October 7, 2016
- CRISPR Therapeutics (CRSP) is set for its IPO of 4.7M shares of common stock at $15 - 17.
- The Basel, Switzerland-based biotech develops therapeutics based on the CRISPR/Cas9 gene editing technology. The company was co-founded in 2013 by Emmanuelle Charpentier who is one of the inventors of CRISPR/Cas9 along with UC-Berkeley's Jennifer Doudna.
- Its most advanced programs (IND stage) are focused on ex vivo applications to treat hemoglobin disorders, including beta thalassemia and sickle cell disease. Other ex vivo programs are Hurler syndrome (mucopolysaccharidosis type 1), severe combined immunodeficiency and various indications in immuno-oncology. In vivo programs include glycogen storage disease, hemophilia, Duchenne muscular dystrophy and cystic fibrosis. All are in the research phase.
- 2016 Financials (6 mo.)($M): Collaboration revenue: 1.3; Operating Expenses: 29.5 (+300.5%); Net Loss: (25.6) (-272.0%); Cash Burn: (23.6) (-454.0%).
- Related tickers: (NASDAQ:EDIT)(NASDAQ:NTLA)
- Forterra (FRTA) plans to offer 18.4M shares in its IPO.
- The concrete and bricks manufacturer expects to price its IPO between $19 and $21 per share. The company will raise $368M at the midpoint of the range.
- SEC Form S-1
Thursday, October 6, 2016
- Camping World Holdings (NYSE:CWH) priced its initial public offering at $22 a share -- the midpoint of its range as expected, CNBC says.
- With 11.4M shares for sale, the company raised $251M in the offering.
- The company, a national network of RV-focused retail locations numbering 120 nationwide, had $3.33B in revenues last year and noted net income of $120.5M for the six months ended June 30, up 10.9% Y/Y.
- AquaVenture Holdings (Pending:WAAS) closed at $22.05 after the company priced its IPO at $18.
- The wastewater services company raised $117M through the public offering of shares.
- Seeking Alpha contributors Don Dion and Donovan Jones both have articles in which they outline the upside for early AquaVenture investors.
- Though not the first time offering-speculation has surfaced, The Wall Street Journal suggests a potential late-March 2017 target for a Snap (Private:CHAT) IPO.
- Readying of related paperwork claimed to be underway though no banks are presently considered to be hired.
- Snap guided for revenue in the $250M-$350M range for 2016 and is now thought to already be above the high end of it ($60M realized in 2015). For 2017, up to $1B was guided.
- Earlier: Instagram's Stories feature records 100M daily active viewers
- Presently trading around $40 (+14% above open).
- Shares initially priced at $18.
- Raised $133.2M on sale of 7.4M shares.
- Coupa Sotware (Pending:COUP), like Nutanix (debuted last week), has never recorded a profit, though investors don't seem to mind as demand for early involvement in technology offerings appears firm.
Wednesday, October 5, 2016
- Coupa Software (Pending:COUP) plans to sell 7.4M shares in a price range of $16 to $18 in its upsized IPO.
- The cloud software company will raise $125.8M at the midpoint of its pricing range.
- Coupa reported revenue of $75.67M for the fiscal year ending in January and a non-GAAP loss of $32.36M.
- S-1 dive: "We benefit from powerful network effects. As more businesses subscribe to our platform, the collective spend under management on our platform grows."
- SEC Form S-1
Monday, October 3, 2016
- China gaming giant NetEase (NTES +1.7%) has acknowledged its wholly owned NetEase Media unit confidentially submitted a draft registration statement for a possible initial public offering to the SEC.
- NetEase Media, which runs the company's Internet media business, submitted a Form F-1 for the possible IPO, though shares and dollar total have yet to be determined.
- "The proposed IPO is expected to commence after the SEC completes its review process, subject to market and other conditions," NetEase says in a statement.
- NetEase ADRs are up 35% YTD.
- Blue Apron is on pace to hit a run rate of $1B in revenue over the next 12 months, sources tell Recode. The company is reportedly in talks with bankers about an IPO that could run the company's valuation to as high as $3B.
- Blue Apron's model of charging $60 to $140 for high-quality meal kits is considered strategically differentiated in the crowded online food delivery space. The upstart has also been profitable in the past.
Saturday, October 1, 2016
- Blackline (BL) files for an IPO of up to $100M.
- The SaaS company offers cloud-based financial and accounting software for businesses.
- Blackline reported revenue of $83.61M last year and showed a net loss of $24.73M.
- SEC S-1 dive: "We believe that we have a significant opportunity to expand the use of our cloud-based products outside the United States. We have an established presence in Australia, Canada, England, France, Germany, the Netherlands and Singapore and we intend to invest in further expanding our footprint in these and other regions."
Friday, September 30, 2016
- In what continues a trend of positive first-day trading momentum already realized in this year's Acacia Communications, Twilio, Line, Talend, Apptio and other offerings.
- Initial price of $16 (+91.1%%), above originally expected range of $13-$15.
- Proceeds of raise approximately $238M.
- Nutanix (NTNX N/A) competes in various ways with EMC/VMware (DVMT +0.6%), Hewlett Packard Enterprise (HPE -0.5%), NetApp (NTAP +3.1%), Nimble Storage (NMBL +0.8%), Pure Storage (PSTG +0.4%) and others.
- Nutanix is set to go public in a long-delayed test of investor attitudes about the technology sector.
- The company, which sells "hyperconverged infrastructure" that offers computing power and storage to businesses, priced its initial batch of shares above range at $16, implying an initial market cap of about $2.2B.
- Nutanix will begin trading today on Nasdaq under the ticker symbol "NTNX."
Thursday, September 29, 2016
- Telefonica (TEF -2.2%) has canceled its initial public offering for infrastructure unit Telxius, originally set to price today, amid weak demand.
- The earlier price range set for the offering had disappointed the debt-heavy carrier and a postponement seemed likely earlier today.
- The company says it will continue to "analyze strategic alternatives" for the division.
- Telxius originally looked to take advantage of a wave of cell-tower spin-offs over the past year, including Cellnex and Inwit, but it drew criticism for including undersea cables in the unit, considered a drag on its overall value.
- Telefonica (TEF +0.2%) is close to postponing the initial public offering of Telxius, its infrastructure unit, after it's running into weak demand for the offering, Bloomberg reports.
- There's no decision yet to postpone but one could come as early as today.
- Telefonica already ran into disappointment with a lower valuation for the offering than it hoped -- €3.38B at the midpoint, vs. a hoped-for €3.5B. Just 40% of the unit was planned for sale, which would bring Telefonica just €1.2B.
- The pricing for the offering was set to be fixed today.
Wednesday, September 28, 2016
- CBS Radio (CBS +4%) is proposing $1.46B in debt financing in connection with its planned spin-off from the parent corporation.
- The unit plans to offer $460M in senior unsecured notes and obtain a $1B senior secured term loan, and provide nearly all of the proceeds to CBS.
- Moody's has given CBS Radio a B1 corporate family rating, and given a Ba3 rating to the first-lien credit (the $1B term loan and a $250M five-year revolver) and a B3 rating to the $460M in senior notes.
- The outlook is stable and reflects our expectation for flat to slightly negative growth through 2017," Moody's says. "Free cash flow after projected dividends are expected to be used for debt payment or acquisitions which should support modest deleveraging over the rating horizon.
- Shares in CBS climbed steadily to a solid gain today after reports that Sumner Redstone's National Amusements would set in motion discussion of a possible re-merger of CBS with Viacom.
- Obalon Therapeutics (Pending:OBLN) is on deck for its IPO of 5M shares of common stock at $14 - 16.
- The Carlsbad, CA-based firm develops medical devices that facilitate weight loss in obese and overweight people. It sole commercially available product is the Obalon balloon system, a swallowable gas-filled intragastric balloon designed to fill much of the stomach which reduces food intake. The FDA approved it several weeks ago as an adjunct to a moderate intensity diet and behavior modification program. It is expected to be commercially available in early 2017.
- The product consists of a balloon folded inside a capsule that is swallowed by the patient. Once in the stomach, it is remotely inflated with gas using a microcatheter. Over the next three months of treatment, two additional balloons are swallowed and inflated. At the end of six months, all are removed via outpatient endoscopy under conscious sedation.
- The company sold over 23,000 earlier-generation Obalon balloon systems internationally before shutting down almost all of its sales efforts to focus on the U.S. market. Its remaining ex-U.S. sales are confined to Bader Sultan & Bros. Co. W.L.L., its distributor in the Middle East.
- 2016 Financials (6 mo.)($M): Revenues: 1.8 (-5.9%); Operating Expenses: 8.1 (+5.6%); Net Loss: (7.7) (-7.8%); Cash Flow Ops: (8.7) (-151.0%).
- Beijing-based Shineco (NASDAQ:TYHT) finalizes its IPO of 1,713,190 shares of common stock at $4.50. Trading commences today.
- The company produces and distributes Chinese herbal medicines, organic agricultural products and specialized textile products exclusively in China. Like many Chinese firms, it sports a complicated corporate structure.
- 2016 Financials (9 mo.)($M): Total Sales: 27.1 (+10.2%); Operating Income: 6.0 (+3.4%); Net Income: 6.9 (+7.8%); Cash Flow Ops: 10.1 (+225.8%).
- Playa Hotels & Resorts (PLYA) files for an IPO with a placeholder amount of $100M listed.
- Renaissance Capital says the deal size could run up to as high as $300M.
- Playa is an operator of all-inclusive resorts in Mexico and the Caribbean with big goals.
- S-1 dive: "We believe that we are well-positioned to pursue acquisitions in the all-inclusive segment of the lodging industry and further establish us as a leading owner and operator of all-inclusive resorts."
- Hyatt Hotels (NYSE:H) has a strategic relationship with Playa and owns an undisclosed stake in the company.
Tuesday, September 27, 2016
- Jose Cuervo files for an IPO in Mexico.
- The alcohol company reported sales of 20B pesos ($1.03B) and net profit of 5.3B ($273M) last year, with a bulk of its business generated in the U.S. and Canada.
- Not many companies are older than Jose Cuervo, which traces its roots back to the early 18th century.
- With Brexit fallout calming, Telefonica (TEF -0.4%) will look to list about 30% of UK wireless firm O2 this year, in what would be one of the London market's biggest IPOs of 2016, Reuters reports.
- The deal could value O2 at £10B and Telefonica chief Jose Maria Alvarez-Pallete is pressing banks to speed up work so that the offering could happen in December (still this year, but clear of the U.S. presidential election and its possible roiling of markets).
- The company's been considering what to do strategically with O2 since a sale to Hutchison was blocked on regulatory grounds.
- Telefonica had previously hired bankers Barclays, UBS and Morgan Stanley to go over the issue, sources said.
- Craft brewer Evans Brewing (ALES) files a registration statement with the SEC to unload 425K shares on behalf of selling shareholder Kodiac.
- Evans Brewing trades on the OTCQB market.
- Small craft brewers such as Evans are on the radar of some traders with the wave of M&A in the beer industry still progressing.
- SEC Form S-1
- GTY Technology (GTYHU) files for an IPO.
- The software and services company plans to raise $300M by selling 10M shares at $10 a pop.
- The blank check entity led by the former CEOs of EMC and Accenture aims to acquire an existing technology business with the IPO proceeds.
- SEC Form S-1
Monday, September 26, 2016
- Thinly-traded Leo Motors (OTCQB:LEOM) intends to make changes to its registration statement first filed on August 9.
- The company is trying to push out and expand its battery swapping program which it says is a concept that has never come to fruition despite the efforts of Tesla and Better Place.
- SEC S-1, SEC Form RW
- Camping World Holdings (NYSE:CWH) plans to offer 11.4M shares in a range of $21 to $23 for its IPO next month. The company will raise $251M at the mid-point of the range.
- The RV retail chain has an active customer database of 3.1M customers and reported revenue of $3.333B last year.
- Updated SEC S-1 filing
7:55 AM| 7:55 AM
Sunday, September 25, 2016
- Yeti Holdings (Pending:YETI) is seeking about a $5B valuation in its IPO which could come as soon as next month, reports the WSJ's Matt Jarzemsky. If things go as planned, Cortec Group - which purchased a $67M stake in the firm in 2012 - could see a paper profit of roughly $3.3B.
- Private-equity's a nice business, but making back 50x an investment in a space of just four years in pretty rare, even in the high-return world of investing in tech startups. Cortec already received a $312M dividend check from Yeti earlier this year.
- Whether Yeti succeeds with that valuation is another story. At $5B, the company would be selling for 36x 2015 EBITDA. That's steep, but Yetil is growing fast (sales more than tripled to $469M last year), and Under Armour - to name another company with hot products - sells for 67x next year's expected profits. Then there's ski-jacket maker Moncler at 20x.
- Popularity can fickle though. For every Under Armour - whose market cap has moved to $16B from $600M since its 2005 IPO - there's a GoPro, whose stock has sunk 29% since it came public.
- "The real question is can Yeti keep innovating, and how far can they take this brand and broaden it without losing their authenticity," says the CEO of West Marine, a boating products retailer carrying Yeti items. "Those are tricky waters to navigate."
Saturday, September 24, 2016
- Expansion and innovation are parts of the plan at e.l.f. Beauty (NYSE:ELF) after the company's dazzling debut on the NYSE this week.
- Shares traded as high as $26.05 before closing at $25.33 on Friday. The cosmetics seller priced the offering at $17.
- The quiet period on e.l.f. Beauty doesn't expire until November 1, giving investors an early look before analysts start gushing. The 43% sales growth of e.l.f. Beauty and its on trend assortment and pricing is expected to bring in a wave of positive ratings from Wall Street. The company utilizes e-commerce and social media sales to drive sales, instead of large budget star-focused advertising campaigns - and is popular with millennial-aged and Hispanic consumers.
- “e.l.f. Beauty’s cosmetics were always focused on diverse consumers and millennials long before it was fashionable to do so,” Chief Executive Tarang Amin explained to Fortune.
- There's also an international opportunity for e.l.f. Beauty if it hits the right markets with the right products.
- SEC S-1
- Previously: e.l.f. Beauty prices IPO (Sept. 22)
Friday, September 23, 2016
- Ahead of its planned IPO, CBS Radio (CBS +1.7%) is setting a $1.5B debt offering in order to send money to its parent, Reuters reports.
- Some of the proceeds would be kept for general purposes, but the unit said in its registration statement that it would send up monies from a debt offering (of undisclosed size) to CBS.
- The debt offering will be split between bonds and loans and could come before year-end, Reuters says.
- Bank financing is being led by JPMorgan Chase, while Deutsche Bank runs the bond financing, the sources said. Meanwhile, Goldman Sachs, Wells Fargo, BofA Merrill Lynch and Credit Suisse are underwriters on the initial public offering.
- The IPO market as a whole has been slow this year, and for REITs nearly completely dormant, writes Susan Persin.
- Things may be loosening up though, with this week's announced terms for the MedEquities Realty Trust (Pending:MRT) IPO. The company hopes to raise up to $259M with the sale of 19.9M shares in the $12-$14 range.
- The only other REIT IPOs this year were the MGM Growth Properties $1B spinoff and the $150M offering from Global Medical REIT.
- Valvoline, an engine and automotive-maintenance business being spun off from Ashland, raised at least $660M in its initial public offering.
- The IPO of 30M shares priced at $22 each, within the expected range of $20-$23 announced on Sept. 12, and will begin trading today on the NYSE under ticker "VVV."
- After the IPO is complete, Ashland will own 170M Valvoline shares, representing an 85% stake.
Thursday, September 22, 2016
- Nashville, TN-based CapStar Financial Holdings (NASDAQ:CSTR) prices its initial public offering of 2.585M shares of common stock at $15. 1,300,299 shares are being offered by the company and 1,284,701 by current shareholders. Underwriters over-allotment is an additional 387,750 shares. Trading commences today.
Wednesday, September 21, 2016
9:37 AM| 9:37 AM | 5 Comments
- There are nine new listings on the calendar over the next three days, marking the busiest week of the year, and if next week's proposed calendar comes through, September will be the busiest month of the year as well.
- Among them: The Trade Desk (Pending:TTD), Novan (Pending:NOVN), CapStar (NASDAQ:CSTR), e.l.f. Beauty (Pending:ELF), AC Immune (Pending:ACIU), Apptio (Pending:APTI), Full Spectrum (Pending:FMAX), Gridsum (Pending:GSUM) and Valvoline (Pending:VVV).
- It's about time. The markets were in full rally mode by late April, and hit new highs in early June, but IPO issuance still lagged.
- Despite pricing its IPO near the bottom of expectations, Postal Savings Bank of China has raised over HK$57.6B ($7.4B), valuing its 12.1B shares at HK$4.76 each.
- It is the world's largest IPO this year and the biggest since Alibaba's $25B listing two years ago.
- Shares are due to start trading on the Hong Kong stock exchange on Sept. 28.
Tuesday, September 20, 2016
- Telefonica (NYSE:TEF) today offered to sell up to 40% of its infrastructure unit, Telxius, at a lower valuation than it was hoping for.
- The IPO range of €12-€15/share values that spin-off at €3.38B at the midpoint, less than the €3.5B that Telefonica had hoped to raise, as it seeks to reduce debt. And with 40% for sale, Telefonica could clear just €1.2B before fees.
- The pricing will be fixed Sept. 29 with trading beginning Oct. 3. Telxius will pay dividends of at least 40% of recurrent cash flow.
- The company handicapped its own plan with bad choices, and that's a mistake, says Leila Abboud. Telxius could have been much larger and more liquid than listed European peers Cellnex and Inwit, but the asset choices Telefonica made will leave Telxius about the same size.
- Telefonica included its undersea cable business, a unit to which investors are sure to ascribe less value, she notes, dragging down Telxius' value overall. Meanwhile, it's only including about half the towers in Spain, squandering an opportunity to double trailing earnings at the spin-off.
- Fulgent Genetics (Pending:FLGT) is set for its IPO of 4.6M shares of common stock at $12 - 14.
- The Temple City, CA-based molecular diagnostics company provides genetic testing services primarily to hospitals and medical institutions. It says that it has developed a proprietary technology platform, including gene probes, advanced database algorithms, adaptive learning software and laboratory management systems, that enables it to provide tests at low cost. Its current menu includes more than 18,000 single-gene tests and more than 200 pre-established, multi-gene, disease-specific panels that collectively test for more than 7,500 genetic conditions.
- 2016 Financials (6 mo.)($M): Revenue: 7.4 (+96.6%); Gross Profit: 4.7 (+100.3%); Operating Expenses: 4.3 (+263.9%); Net Loss: (5.1) (-999%); Cash Flow Ops: (0.0) (+97.6%).
- Tabula Rasa Healthcare (Pending:TRHC) is set for its IPO of 4.3M shares of common stock at $13 - 15.
- The Moorestown, NJ-based firm develops technology-enabled products and services for medication management and risk adjustment. Its solutions enable healthcare organizations optimize medication regimens to improve patient outcomes, reduce hospitalizations, lower healthcare costs and manage risk.
- Its cloud-based software set is based on its proprietary Medication Risk Mitigation Matrix which customizes a patient's medication regimen by combining clinical and pharmacology data, population-based algorithms and patient-specific data to deliver "precision" medicine. The set includes software applications EireneRx and MedWise Advisor which provides solutions for a range of payors, providers and other healthcare organizations. The company also has a team of clinical pharmacologists that can support prescribers at the point of care. The company says it is the market leader in providing medication risk management to the CMS-sponsored program PACE (Program of All-Inclusive Care for the Elderly).
- 2016 Financials (6 mo.)($M): Total Revenues: 42.6 (+31.7%); Product Revenue: 38.0 (+39.2%); Gross Profit: 12.5 (+33.3%); Operating Expenses: 7.2 (+23.0%); Net Loss: (.03) (+85.6%); Cash Flow Ops: 6.9 (+321.8%).
- If there's been a sleeper in the retail sector over the last two years it's Ulta Salon (NASDAQ:ULTA).
- Sizzling same-store sales and a thriving on-trend e-commerce business has helped shares almost double in value.
- Did you know that by market cap Ulta Salon is now much larger than Macy's, Chipotle, Whole Foods Market, and Tiffany?
- A very good look at Ulta's success is highlighted in this interview of CEO Mary Dillon posted on Fortune.com. Dillon's strategy seems to back up the contention of SA contributors James Sands and Christoph Schrills that's it not too late for investors to jump on the Ulta bandwagon.
- The Ulta story may also be of interest to investors pondering the e.l.f. Beauty (Pending:ELF) IPO.
- The world's biggest IPO this year is getting off to a lukewarm start.
- Postal Savings Bank of China is planning to price its Hong Kong listing at the lower end of its marketed range, raising between $7B-$8B, with around three quarters of shares going to just six anchor investors.
- The bank has 40K branches throughout China, 505M retail customers and is the nation's fifth largest lender by assets.
Monday, September 19, 2016
- The Trade Desk (Pending:TTD) increase the pricing range of its IPO to $16 to $18, from a prior level of $14 to $16.
- The ad buying platform firm will raise $79.4M at the midpoint of the updated range.
- The Trade Desk churned up revenue of $113.84M last year and adjusted EBITDA of $39.16M.
- The Trade Desk S-1
Saturday, September 17, 2016
- The IPO market gets a makeover next week with the public launch of e.l.f. Beauty (Pending:ELF). The company is selling 9.58M shares in an expected range of $14 to $16.
- The cosmetics brand is sold through e.l.f.'s website and is available at retailers such as Ulta Salon and Target, and CVS. The e.l.f. filing says the mass market cosmetics seller aims to take floor space from legacy brands (heads up AVP, EL, RDEN, REV). Wal-Mart (NYSE:WMT) is mentioned in the S-1, while Amazon is MIA.
- SEC S-1 dive: "We have major distribution whitespace, as we are currently in only approximately 19,000 national retail stores in the United States and believe there are thousands of additional stores available to us."
- The leading underwriters for the IPO are JPMorgan and Morgan Stanley, A lockup period of 180 days applies. TPG Growth holds a majority stake in e.l.f.
- What to watch: While consumer spending in the U.S. has been choppy, some analysts see demand in the lower-priced cosmetics category remaining strong. The spectacular run for Ulta Salon (NASDAQ:ULTA) over the last couple of years backs that trend and could be an indication of a long growth runway for e.l.f.
Friday, September 16, 2016
- Novan (Pending:NOVN) is set for its IPO of 3.75M shares of common stock at $11 - 13.
- The Durham, NC-based pharmaceutical firm develops dermatology therapies based on its nitric oxide platform. Its lead product candidate is SB204, a topical gel for the treatment of acne vulgaris (common acne). Top-line data from two Phase 3 studies are due in Q1 2017. If positive, a New Drug Application (NDA) is on tap by late 2017.
- Other pipeline candidates are Phase 2-stage SB206, a topical anti-viral gel for the treatment of viral skin infections such as genital warts and Phase 2-stage SB208, a topical anti-fungal gel for the treatment of fungal infections of the nails.
- 2016 Financials (6 mo.)($M): Operating Expenses: 29.2 (+189.0%); Net Loss: (29.2) (-170.0%); Cash Burn: (22.1) (-159.5%).
- AC Immune SA (Pending:ACIU) is set for its IPO of 4,545,456 common shares at $11 - 13.
- The Lausanne, Switzerland-based biopharmaceutical firm develops therapies for neurodegenerative diseases related to protein misfolding. Its lead product candidate is crenezumab, a humanized monoclonal antibody, currently in Phase 3 development for the treatment of Alzheimer's disease (AD) by collaboration partner Genentech (OTCQX:RHHBY). The indication has Fast Track status in the U.S.
- Other AD candidates include ACI-24, an anti-Abeta vaccine and ACI-35, an anti-pTau vaccine, both early-stage. All three were developed with the company's SupraAntigen platform.
- 2016 Financials (6 mo.)($M): Revenues: 20.5 (+42.0%); Operating Expenses: 13.8 (+54.1%); Net Income: 6.8 (+20.0%); Cash Flow Ops: (7.2) (-144.8%).
- Expedia (NASDAQ:EXPE) has picked JP Morgan, Goldman Sachs and Morgan Stanley as global coordinators for its planned IPO of Trivago, sources tell Reuters.
- The IPO will likely take place this year or early 2017.
- Citi, Bank of America and Deutsche Bank are bookrunners.
- CEO Dara Khosrowshahi told investors in July that management and Trivago's founding team had agreed to an IPO to value Trivago as a stand-alone company.
- Expedia also said that Trivago had generated revenue of more than $660M on a trailing 12-month basis and that revenue had grown sixfold since it acquired Trivago in 2012.
Wednesday, September 14, 2016
- Bearing down on a likely 2017 IPO, Spotify (Private:MUSIC) is losing its top money man after five years.
- Jeff Levick, the company's chief revenue officer, is leaving Spotify and the company has yet to name his replacement, Recode confirms. He had joined the company five years ago after work at AOL and Google.
- In a post about his departure, Levick points to wishes for more travel and family time. The company's workers "(so far…) have survived competitive threats from the two largest companies in the world -- Apple and Google -- all wanting to build a ‘Spotify killer,' " but: "I’m not 12 and I’m not getting any younger and there’s a lot of things I’d really like to do that I haven’t done."
- The company today said it had crested 40M paid subscribers.
Tuesday, September 13, 2016
- State-owned Postal Savings Bank of China has launched an initial public offering in Hong Kong worth up to $8.1B, which could become the world's biggest share sale this year.
- The vast majority of the deal is being covered by six cornerstone investors, who will buy as much as 72% of the IPO, underscoring tepid demand for Hong Kong offerings from retail investors and fund managers in the city.
Monday, September 12, 2016
- Valvoline (Pending:VVV) files to sell 30M shares in a range of $20 to $23. The oil change company could raise as much as $793M at the top end of the range with all the exercise options utilized.
- Valvoline reported revenue of $1.4352B and net income of $229M for the nine-month period that ended on June 30. In the filing, Valvoline said it has an awareness rate of 90% with U.S. consumers.
- SEC Form S-1
Thursday, September 8, 2016
- Roark Capital acquired a majority stake in Jimmy John's for an undisclosed amount.
- Founder Jimmy John Liautaud will remain the Chairman of the Board.
- The sandwich chain generates sales of over $2B per year through its 2,500 locations (mainly franchised). The new unit pipeline is over 1,100 for the next several years.
- Jimmy John's scrapped an IPO in January of 2015. There's isn't any indication yet if Roark Capital's plans for JJ's includes an IPO.
Wednesday, September 7, 2016
- Snapchat (Private:CHAT) is in talks with investment bankers about an IPO filing sometime toward the end of this year or early 2017, according to The Information.
- The company has reportedly yet to hire a banker, meaning there's probably no set timeline. "Whether and when we go public will depend on a variety of factors, many of which are beyond our control," says a spokesperson.
- Some numbers from eMarketer: Snapchat should have revenue in the area of $366M this year and nearly $1B in 2017; the company captures 31.6% of social network users in the U.S., and could surpass Twitter in active U.S. users this year - putting it behind only Facebook and Instagram.
Monday, August 29, 2016
- A flood of share debuts is expected to invigorate the listless IPO market after the coming Labor Day holiday.
- On the radar: Valvoline (Pending:VVV), Nutanix (Private:NTNX), Bank of N.T. Butterfield & Son, J.A. Cosmetics US and Yeti Holdings (Pending:YETI).
- As of late August, 2016 was on track to be the worst year for IPOs since the financial crisis, with 63 companies listing on U.S. exchanges and raising just $12.9B.
- ETFs: FPX, IPO, IPOS, FPXI
Friday, August 26, 2016
- Cosmetics firm e.l.f. Beauty (ELF) files for an IPO of up to $100M.
- The company reported sales of $96.8M for the first six months of the year and adjusted EBITDA of $19.96M.
- From the filing: "We believe that a paradigm shift has occurred in cosmetics: today’s cosmetics consumer is increasingly connected and informed, and purchasing decisions are often influenced by friends, beauty bloggers, social media and other online content."
- SEC Form S-1
Tuesday, August 23, 2016
- Saban Capital Acquisition (SCACU) files for an IPO of up to $230M.
- The company's chairman is longtime media industry investor Haim Saban.
- Saban calls itself a blank check acquisition company which doesn't have a particular media or entertainment target set just yet.
- SEC Form S-1
- Anbang Insurance Group is prepping for an IPO of its life insurance business in Hong Kong, reports Reuters.
- Sources indicate thaa investment banks are pitching their services to the company.
Monday, August 22, 2016
- Over-the-top streaming firm FOTV Media Networks is pursuing an IPO it expects to close in September and fund investment in Internet video content or acquisitions.
- The company, which rolls up a number of digital media units (including FilmOn.TV, Hologram USA FOTV Productions, CinemaNow and OVGuide) serving a combined audience of more than 75M monthly unique users, is offering up to 3.75M shares (and 2.5M shares at minimum) on a best-efforts basis at $8/share.
- It's pursuing trading on Nasdaq under the symbol "FOTV."
- According to the company's filings, it drew revenues of $3.49M in the quarter ended March 31 (up 56% Y/Y), and posted a net loss of $6.03M. On a pro forma basis (assuming completed acquisitions of CinemaNow and OVGuide had taken place at the beginning of 2015), revenues would have been $3.85M, and $25.4M for calendar 2015.
- S-1 statement
- The Trade Desk (TTD) files for an IPO sized at $86M.
- The ad agency data tracker reported revenue of $113.84M last year and adjusted EBITDA of $39.16M. The company says insiders will continue to have substantial control after the public offering of shares.
- SEC Form S-1
Sunday, August 21, 2016
- Chinese selfie app Meitu is preparing to raise up to $1B through a listing on the Hong Kong exchange, in a test of whether that market can compete with New York and mainland China for a wave of expected public offerings.
- The NYSE and the Nasdaq have long been the preferred destinations for China's internet giants (for a variety of reasons including share-structure rules), but a successful IPO could strengthen Hong Kong's hand as it tries to persuade Chinese startups such as $46B Xiaomi (Private:XI) and $36B Didi Chuxing (Private:DIDI) to list in the former British colony.
- Alibaba flirted with a Hong Kong listing before picking New York for its record-breaking $25B IPO, and other marquee Chinese internet companies, including JD.com Inc. and Baidu also trade in the U.S.
- ETFs: EWH, EWHS, FCHI, FHK
Monday, August 15, 2016
- The report notes Dropbox (Private:DROPB) management's willingness to evaluate public valuation and the viability of a listing.
- Last November, Dropbox CEO Drew Houston stated the company "had no plans to go public anytime soon."
- Valuation for the company is around $10B based on a 2014 funding round. Comparably, competitor Box (BOX +3.2%) has a present market capitalization of $1.64B.
- Dropbox is not profitable, registers positive free cash flows, counts 500M registered users and 200,000 enterprise customers.
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