Today - Wednesday, April 1, 2015
- After pricing its 22M-share IPO at $20, GoDaddy (Pending:GDDY) opened at $26.15 and is now at $26.04, up 30.2%.
- The Web hosting/domain name service provider is valued at $3.9B, or $5B after factoring net debt. Smaller peer Web.com (WWWW +2.5%) appears to be getting a lift from GoDaddy's debut.
- Prospectus, IPO analysis
- Prior GoDaddy coverage
9:54 AM| 2 Comments
Tuesday, March 31, 2015
- GoDaddy's (Pending:GDDY) IPO price is above a $17-$19 range, and good for a $3.02B valuation (1.8x 2014 bookings).
- The Web hosting/domain name service provider begins trading tomorrow. Not counting a 3.3M-share overallotment option, it's set to raise $440M. Earlier today, the WSJ took a look at GoDaddy's efforts to overhaul its edgy image.
- Prospectus, IPO analysis
- Prior GoDaddy coverage
- ETSY's $14-$16 IPO price range translates into a $1.55B-$1.78B valuation range. At the midpoint, that's equal to 8.5x 2014 sales. Given recent growth, the forward P/S multiple could be 6-7x. (prospectus)
- With Etsy selling 13.3M new shares through the IPO, the company's gross proceeds stand to total $186M-$213M. Existing holders are initially selling 3.3M shares, and could sell another 2.5M if a greenshoe option is picked up.
- Accel Partners and other entities associated with VC Jim Breyer are selling 1.53M shares, thus lowering their stake to 25% from 30%. Union Square Ventures affiliates are selling 861K shares (cutting their stake to 12.6% from 15.2%), Index Ventures affiliates are selling 724K (cutting their stake to 12.8% from 15.6%). and Acton Capital affiliates are selling 222K (cutting their stake to 3.3% from 3.9%).
- Prior Etsy coverage
- Online craft marketplace Etsy (Pending:ETSY) will kick off its IPO roadshow tomorrow as it files to sells 16.67M shares (13.33M shares with 3.33M additional coming from selling stockholders) and expects a range of $14-$16/share.
- At the top end of that range, the firm would raise almost $267M.
- While Etsy was previously valued at nearly $700M, its revenue numbers suggest a current valuation that may be north of $1B.
- Previously: Etsy files for IPO, reports strong revenue growth (Mar. 04 2015)
- Previously: Bloomberg: Etsy working with banks on IPO (Jan. 13 2015)
Monday, March 30, 2015
Thursday, March 26, 2015
- After pricing its 7M-share IPO at $18, SolarEdge (Pending:SEDG) opened at $20.00 and is currently at $21.69, up 20.5%.
- The solar inverter/power optimizer maker is valued at $826M, or (given FY14 sales and recent growth) potentially ~2x forward sales.
- Rival/microinverter leader Enphase (ENPH +3.3%) appears to have gotten a lift from SolarEdge's debut; its market cap is currently at $518M.
- Prospectus, details/financials, IPO analysis,
Wednesday, March 25, 2015
9:01 AM| Comment!
- CAR-T developer Cellectis (Pending:CLLS) begins trading today. Its IPO is 5.5M American Depositary Shares (ADSs) at $41.50. Underwriters over-allotment is an additional 825K shares.
- Previously: Cellectis on deck for what should be a very strong IPO (March 18)
Tuesday, March 24, 2015
- Fresh & Easy is closing stores in advance of launching a fresh-food convenience store chain.
- 30 stores in California by F&E will be shuttered as part of the initiative.
- Though details on the new C-store venture are scant, Apple store designer ADMI is reportedly working on the project.
- Fresh & Easy is owned by P-E firm Yucaipa which bought the chain from Tesco after it bled money under the direction of the British retail giant.
- Fresh & Easy has rebranded some stores in the U.S. under the Wild Oats banner and has been mentioned as an IPO candidate.
- The success of the new C-store fresh food chain will be closely watched by a large number of retail and grocery companies which could partner, mimic, or ignore the concept.
- Sprouts Farmers Market (NASDAQ:SFM), Whole Foods Market (NASDAQ:WFM), Kroger (NYSE:KR), The Fresh Market (NASDAQ:TFM), Natural Grocers by Vitamin Cottage (NYSE:NGVC), and Fairway Group (NASDAQ:FWM) all have some skin in the game.
- There's also Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Costco (NASDAQ:COST) which are stressing both "fresh" and "easy" with their grocery strategy.
- AmazonFresh (NASDAQ:AMZN) and Instacart are also looking to captivate fresh food buyers with their models.
Monday, March 23, 2015
- Restaurants chains sitting in a niche category somewhere between fast-food and fast-casual are outperforming the industry as a whole, according to data from Technomic.
- The so-called QSR-Plus sector consisting of Chick-fil-A, In-N-Out Burger, Culver's, El Pollo Loco (NASDAQ:LOCO), Potbelly Sandwich Shop (NASDAQ:PBPB), Pita Pit, and Freddy's Frozen Custard & Steakburgers saw sales growth of 9.4% in 2014 to easily outdistance full-service, limited service, and broad fast-food categories.
- The research firm notes the group has the distinction of having a reputation with consumers for better quality than rivals.
- IPO watch: QSR-Plus is heavy on private companies with broader national footprints than Habit Restaurants and Shake Shack which launched publicly with a high level of interest from investors.
Friday, March 20, 2015
- Looking to cash in on strong investor interest in all things cybersecurity-related, security software/services providers Rapid7, LogRhythm, and Mimecast are each planning 2015 IPOs at $1B+ valuations, Reuters reports.
- Rapid 7 provides incident detection/response and threat management software (a fast-growing area in the wake of major security breaches), along with security advisory services. It has over 3,500 customers, including Amazon and American Express.
- LogRhythm provides software for analyzing log/machine data, file changes, and network sessions for security threats - machine data analytics leader Splunk (NASDAQ:SPLK) is a rival. Mimecast provides cloud-based e-mail security and archiving tools; its revenue rose 30% in 2014 to $88.4M.
- Earlier this month, Fortune reported Veracode, which provides cloud-based app analysis security tools, has confidentially filed for an IPO and is aiming for a valuation roughly twice that of the $450M assigned in a recent funding round.
- ETF: HACK
- #3 Chinese search engine Sogou is planning an IPO that will feature a $3B+ valuation, Bloomberg reports. Sources add Sogou, which is controlled by Sohu (SOHU +3.7%), could see an offering in 2H15.
- Sogou has been easily outgrowing Sohu's portal and gaming ops: Its revenue rose 70% Y/Y in Q4 to $119M. It had an estimated 6.9% Q4 Chinese search share, trailing Baidu's (NASDAQ:BIDU) 74.4% and Qihoo's (NYSE:QIHU) 17.3%.
- Tencent (OTCPK:TCEHY) bought a 40.9% stake in Sogou in 2013 for $516M, and has integrated Sogou's services with its wildly popular WeChat mobile messaging platform (recently hit 500M MAUs). Aside from search, Sogou's services include a Web directory, games, and popular Chinese-language typing software (Sogou Pinyin).
Thursday, March 19, 2015
- GoDaddy (Pending:GDDY) has set an IPO price range of $17-$19. That spells a valuation range of $2.57B-$2.87B for the Web hosting/domain name services provider, or 1.6x 2014 bookings at the midpoint. (prospectus)
- With 22M shares being offered, gross proceeds would total $396M at the midpoint.
- Previously: GoDaddy's IPO filing/2014 financials
- Philips (NYSE:PHG) has announced plans to spin off its lighting business in a multibillion-euro IPO next year, narrowing its focus following profit warnings and criticism of its cumbersome corporate structure.
- In a circular to shareholders, Philips said it would likely only sell a minority interest in the business at first, with the aim of a full divestment over time.
- Lighting contributed nearly 30% of Philips' €21.39B revenue in 2014.
- Previously: Philips plans company break-up (Sep. 23 2014)
Wednesday, March 18, 2015
- Paris, France-based Cellectis (Pending:CLLS) is set for its U.S. debut of 3.5M American Depositary Shares (ADSs) representing 3.5M ordinary shares at $36.83 per ADS. The company's stock currently trades on the Alternext market of Euronext in Paris under the symbol "ALCLS."
- The gene-editing firm develops CAR-T cancer immunotherapies, currently the "next big thing" in the treatment of cancer. Other emerging biotechs in the field sport valuations of $3B+ (NASDAQ:KITE) (NASDAQ:JUNO) (NASDAQ:BLCM) (NASDAQ:BLUE). In June 2014 it inked a deal with Pfizer (NYSE:PFE) to develop CAR-T therapies which included establishing a 10% stake in Cellectis.
- Cellectis' gene-editing technology allows it to create T-cells that express chimeric antigen receptors (CARs) that harness the immune system's power to target and kill cancer cells. Its uniqueness is the capability to create allogeneic CAR-T cells from healthy donors instead from the patients themselves. This creates the opportunity to develop "off-the-shelf" products that can be stored and distributed worldwide.
- Gene editing is a form of genetic engineering in which DNA is manipulated (inserted, deleted, repaired or replaced) from a precise location in the genome. Cellectis' technology and expertise enables it to edit any gene with a high degree of precision.
- 2014 financial performance (€M): Revenues: 26.5 (+108.7%); Operating Loss: (5.2) (+80.4%); Net Loss: (1.0) (+98.2%); CF Ops: 42.5 (+322.5%).
Monday, March 16, 2015
- Oakwood Village, OH-based ViewRay (Pending:VRAY) is set for its IPO of 4M shares of common stock at $12 - 14.
- The company's sole product is the MRIdian, an MRI-guided radiation therapy system that images and treats cancer patients simultaneously. With other radiation therapy technologies, imaging can only be done before or after treatment. The focus of the radiation is based on images that were captured minutes, days or weeks before the treatment. Since soft tissue can move, the radiation beam can miss the tumor's edges and unnecessarily irradiate healthy tissue.
- Physicians have used MRIdian to treat patients with over 20 different types of cancer. The system earned 510(k) clearance in the U.S. in May 2012 and CE Mark clearance in the E.U. in November 2014.
- 2014 financial performance ($M): Revenues: 6.4 (+102.6%); Gross Margin: (2.8) (+45.3%); Operating Expenses: 31.6 (+16.5%); Net Loss: (33.8) (-24.3%); CF Ops: (27.5) (-8.3%).
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