U.S. IPO Week Ahead: Fall IPO Market Starts Up With 5 Deals Led By China's NIO

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Includes: ARCE, ARVN, ELAN, FTCH, GRTS, LTHM, NIO, NMCI, PRNB, QTT, STRO, SVMK, VIOT, XYF, YI, ZEK
by: Renaissance Capital IPO Research

Five IPOs are scheduled to raise $1.6 billion in the week ahead, the first batch since mid-August. As we highlighted in our Fall Preview, China is kick-starting Post-Labor Day deal flow: Three companies this week are Chinese, including a $1.2 billion offering from electric vehicle maker NIO (NYSE:NIO). Its US IPO is coming despite recent declines in Chinese stocks and and close peer Tesla (NASDAQ:TSLA), and should test whether investors have an appetite for other high-growth, high-loss China-based companies in the IPO pipeline.

Five more IPOs are already scheduled for the following week, including three that plan to raise $600 million or more: Elanco (NYSE:ELAN), Farfetch (NYSE:FTCH) and Zekelman (ZEK). More IPOs are expected, with several companies potentially launching IPOs in the coming week: Arco Platform (NASDAQ:ARCE), Livent (NYSE:LTHM), SurveyMonkey (NASDAQ:SVMK), China-based X Financial (NYSE:XYF) and Viomi Technology (NASDAQ:VIOT), and biotechs Gritstone Oncology (NASDAQ:GRTS), Sutro Biopharma (NASDAQ:STRO) and Arvinas (NASDAQ:ARVN).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

111 (NASDAQ:YI)
Shanghai, China

$140M
$1,300M

$14 - $16
9,300,000

JP Morgan
Citi

Operates an online retail drugstore and healthcare platform in China.

NIO
Shanghai, China

$1,160M
$7,995M

$6.25 - $8.25
160,000,000

Morgan Stanley
Goldman (Asia)

China-based producer of high-performance electric vehicles.

Navios Maritime Containers LP (NASDAQ:NMCI)
Monte Carlo, Monaco

$100M
$335M

$18 - $20
5,263,158

JP Morgan
BofA ML

MLP formed by Navios Holdings to own contracted containerships.

Principia Biopharma (NASDAQ:PRNB)
South San Francisco, CA

$75M
$369M

$15 - $17
4,687,500

BofA ML
Leerink Partners

Developing oral small molecule therapies for pemphigus, ITP and MS.

Qutoutiao (NASDAQ:QTT)
Shanghai, China

$128M
$2,454M

$7 - $9
16,000,000

Citi
Deutsche Bank

Chinese news and video aggregation app that provides custom feeds.

111, which operates an online retail drugstore and healthcare platform in China, plans to raise $140 million by offering 9.3 million ADSs at a price range of $14.00 to $16.00. Insiders intend to purchase $20 million of the IPO (14% of deal). At the midpoint of the proposed range, 111 would command a market value of $1.3 billion. Founded in 2010, it booked $1.3 billion in sales over the last 12 months. The Shanghai, China-based e-commerce company plans to list on the NYSE under the symbol YI. J.P. Morgan, Citi and CICC are the joint bookrunners on the deal.

Navios Maritime Containers LP, an MLP formed by Navios Holdings to own contracted containerships, plans to raise $100 million by offering 5.3 million shares at a price range of $18.00 to $20.00. At the midpoint of the proposed range, Navios Containers would command a market value of $335 million. Formed last year and listed on the Norwegian OTC, it booked $98 million in sales over the last 12 months. The Monte Carlo, Monaco-based company plans to list on the Nasdaq under the symbol NMCI. J.P. Morgan, BofA Merrill Lynch, Citi and Clarksons Platou Securities are the joint bookrunners on the deal.

NIO, a China-based producer of high-performance electric vehicles, plans to raise $1.16 billion by offering 160.0 million ADSs at a price range of $6.25 to $8.25. At the midpoint of the proposed range, NIO would command a market value of $8.0 billion. NIO, which was founded in 2014, booked $46 million in sales over the last 12 months. The Shanghai, China-based company plans to list on the NYSE under the symbol NIO. Morgan Stanley, Goldman Sachs (Asia), J.P. Morgan and BofA Merrill Lynch are the joint bookrunners on the deal.

Principia Biopharma, which is developing oral small molecule therapies in the areas of oncology and immunology, plans to raise $75 million by offering 4.7 million shares at a price range of $15.00 to $17.00. Insiders intend to buy up to $26 million of the IPO (35% of deal). At the midpoint of the proposed range, Principia Biopharma would command a market value of $369 million. Principia, which was founded in 2008, booked $29 million in revenue over the last 12 months. The South San Francisco, CA-based company plans to list on the Nasdaq under the symbol PRNB. BofA Merrill Lynch, Leerink Partners and Wells Fargo Securities are the joint bookrunners on the deal.

Qutoutiao, a Chinese news and video aggregation app that provides custom feeds, plans to raise $128 million by offering 16.0 million ADSs at a price range of $7.00 to $9.00. JD.com (NASDAQ:JD) intends to purchase up to $40 million of the IPO (31% of deal). At the midpoint of the proposed range, Qutoutiao would command a market value of $2.5 billion. Founded in 2016, it booked $1.1 billion in sales over the last 12 months. The Shanghai, China-based company plans to list on the Nasdaq under the symbol QTT. Citi, Deutsche Bank, China Merchants Securities and UBS Investment Bank are the joint bookrunners on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 7.3% year-to-date, while the S&P 500 is up 7.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Athene (NYSE:ATH). The Renaissance International IPO Index is down 8.4% year-to-date, while the ACWX is down 7.7%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Delivery Hero and Siemens Healthineers.

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