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U.S. IPO Week Ahead: Yeti Coolers And A Billion-Dollar Payments Company Lead 5-IPO Week

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Includes: ALACU, ALZH, GMDA, PAGS, PT, STNE, YETI
by: Renaissance Capital IPO Research

Five IPOs and one SPAC are scheduled to raise $1.7 billion in the week ahead. The price cuts and postponements this past week showed that IPO buyers are in firm control.

StoneCo (NASDAQ:STNE) is aiming to raise $1.05 billion in the year's ninth billion-dollar IPO. The company's revenue spiked 92% in the first half, and margins have rapidly expanded as well. Close peer PagSeguro (NYSE:PAGS) priced its IPO earlier this year, and has traded up about 39% from its offer price (+2% aftermarket).

Yeti Holdings (NYSE:YETI) is back, following an operational issue that caused it to delay its 2016 IPO. Backed by Cortec, the company offers decent growth and margins, and its brand has become a status symbol in certain parts of the country. However, competition is fierce and the company has been levered up from insider dividends.

Chinese financing platform provider Pintech (NASDAQ:PT) launched late on Friday for a pricing in the week ahead. It is the latest Chinese company set terms for a US IPO that is mostly covered by insiders (following Studio City (NYSE:MSC) and LAIX (NYSE:LAIX)). However, it is still rare to see a deal that is 132% covered.

Two small late-stage biotechs may price this week. Alzheimer's-focused Alzheon (NASDAQ:ALZH) is back with a lower deal size after withdrawing an IPO in May. Israel-based Gamida Cell (NASDAQ:GMDA), backed by Novartis, plans to raise $50 million (60% from insiders).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Alzheon
Framingham, MA

$35M
$196M

$13 - $15
2,500,000

ThinkEquity
HC Wainwright

Phase 3 biotech developing small molecule therapies for Alzheimer's disease.

Pintec Technology
Beijing, China

$41M
$481M

$10 - $12
3,725,000

Goldman (Asia)
Deutsche Bank

Operates an online platform that facilitates merchant financing in China.

Yeti Holdings
Austin, TX

$400M
$1,749M

$19 - $21
20,000,000

BofA ML
Morgan Stanley

Designs and sells premium branded outdoor equipment.

Gamida Cell
Jerusalem, Israel

$50M
$300M

$13 - $15
3,571,429

BMO
RBC

Phase 3 biotech developing cell therapies for hematologic malignancies.

StoneCo
São Paulo, Brazil

$1,050M
$6,031M

$21 - $23
47,727,272

Goldman
JP Morgan

Brazilian payment processor focused on small and medium-sized businesses.

Alberton Acquisition (NASDAQ:ALACU)

$100M
$128M

$10
10,000,000

Chardan

Hong Kong-based blank check company.

StoneCo, a Brazilian cloud-based online payment processor, plans to raise $1.05 billion by offering 47.7 million shares at a price range of $21.00 to $23.00. At the midpoint of the proposed range, StoneCo would command a market value of $6.0 billion. Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) and insiders intend to purchase up to $564 million of the IPO (combined 53% of the deal). StoneCo, which was founded in 2012, booked $289 million in sales over the last 12 months. The São Paulo, Brazil-based company plans to list on the Nasdaq under the symbol STNE. Goldman Sachs, J.P. Morgan, Citi and Itau BBA are the joint bookrunners on the deal.

Yeti Holdings, which designs and sells premium branded outdoor equipment, plans to raise $400 million by offering 20.0 million shares (12% primary) at a price range of $19.00 to $21.00. At the midpoint of the proposed range, it would command a market value of $1.7 billion. Yeti Holdings, which was founded in 2006, booked $727 million in sales over the last 12 months. The Austin, TX-based company plans to list on the NYSE under the symbol YETI. BofA Merrill Lynch, Morgan Stanley, Jefferies and Baird are the joint bookrunners on the deal.

Gamida Cell, a Phase 3 biotech developing cell therapies for hematologic malignancies, plans to raise $50 million by offering 3.6 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, it would command a market value of $300 million. Insiders intend to purchase up to $30 million of the IPO (60% of the deal). The Jerusalem, Israel-based company was founded in 1998 and plans to list on the Nasdaq under the symbol GMDA. BMO Capital Markets and RBC Capital Markets are the joint bookrunners on the deal.

Alzheon, a Phase 3 biotech developing small molecule therapies for Alzheimer's disease, plans to raise $35 million by offering 2.5 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, Alzheon would command a market value of $196 million. The Framingham, MA-based company, which was founded in 2013, plans to list on the Nasdaq under the symbol ALZH. ThinkEquity and H.C. Wainwright are the joint bookrunners on the deal.

Alberton Acquisition, a Hong Kong-based blank check company, plans to raise $100 million by offering 10.0 million units at $10.00. At that price, it would command a market value of $128 million. Alberton Acquisition was founded in 2018 and plans to list on the Nasdaq under the symbol ALACU. Chardan Capital is the lead bookrunner on the deal.