U.S. IPO Week Ahead: Unicorn Qualtrics Leads Pre-Thanksgiving Feast Of 8 IPOs

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Includes: ALZH, CNTX, UTC, VAPO, WEI, XM
by: Renaissance Capital IPO Research

As many as eight IPOs could price in the week ahead. Software unicorn Qualtrics should dominate investor attention. Coming with a $4.8 billion proposed valuation, the company offers both fast growth and over a decade of generating positive cash flow.

While eight deals may sound like a busy week, two are blank check companies, one is a newly-formed investment vehicle for uranium, one is a 100% pre-sold Chinese deal, and one has been on the IPO calendar for a month (Alzheon). The market's recent volatility is still hurting issuance, and we'll need to see new initial filings before we can expect a more active December.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Alzheon (NASDAQ:ALZH)
Framingham, MA

$30M
$82M

$4 - $6
6,000,000

ThinkEquity
HC Wainwright

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

Vapotherm (NYSE:VAPO)
Exeter, NH

$60M
$254M

$14 - $16
4,000,000

BofA ML
William Blair

Provides noninvasive breathing aids to treat respiratory distress.

Centrexion Therapeutics (CNTX)
Boston, MA

$75M
$354M

$14 - $16
5,000,000

BofA ML
Leerink Partners

Developing non-opioid therapies for chronic pain.

Qualtrics International (XM)
Provo, UT

$400M
$4,812M

$18 - $21
20,512,820

Morgan Stanley
Goldman

Provides software used to analyze and improve user experience.

Weidai (NYSE:WEI)
Hangzhou, China

$45M
$700M

$9 - $11
4,500,000

Morgan Stanley
Citi

Provides an auto-secured loan platform for small businesses in China.

AMCI Acquisition (AMCIU)
Greenwich, CT

$200M
$250M

$10
20,000,000

Jefferies

Blank check company formed by coal industry veteran Hans Mende.

FinTech Acquisition III (FTACU)
Philadelphia, PA

$275M
$355M

$10
27,500,000

Cantor Fitz.

Blank check company formed by management of The Bancorp to acquire a financial technology business.

Uranium Trading (UTC)
El Segundo, CA

$50M
$54M

$10 - $12
4,545,455

B. Riley FBR

Newly-formed vehicle investing in the civil uranium market.

Qualtrics International, which provides software used to analyze and improve user experience, plans to raise $400 million by offering 20.5 million shares at a price range of $18.00 to $21.00. At the midpoint of the proposed range, it would command a market value of $4.8 billion. Qualtrics, which was founded in 2002, booked $372 million in sales over the last 12 months. The Provo, UT-based company plans to list on the Nasdaq under the symbol XM. Morgan Stanley, Goldman Sachs, Barclays and RBC Capital Markets are the joint bookrunners on the deal.

Centrexion Therapeutics, which is developing non-opioid therapies for chronic pain, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. Insiders intend to purchase up to $30 million of the IPO (40% of the deal). At the midpoint of the proposed range, it would command a market value of $354 million. Founded in 2013, the Boston, MA-based company plans to list on the Nasdaq under the symbol CNTX. BofA Merrill Lynch, Leerink Partners and Evercore ISI are the joint bookrunners on the deal.

Vapotherm, which provides noninvasive breathing aids to treat respiratory distress, plans to raise $60 million by offering 4.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, it would command a market value of $254 million. Vapotherm, which was founded in 1993, booked $41 million in sales over the last 12 months. The Exeter, NH-based company plans to list on the NYSE under the symbol VAPO. BofA Merrill Lynch and William Blair are the joint bookrunners on the deal.

Weidai, which provides an auto-secured loan platform for small businesses in China, plans to raise $45 million by offering 4.5 million shares at a price range of $9.00 to $11.00. Outside investors have indicated an interest in buying up to $50 million of the IPO (111% of deal). At the midpoint of the proposed range, it would command a market value of $700 million. Weidai, which was founded in 2011, booked $3.9 billion in sales over the last 12 months. The Hangzhou, China-based company plans to list on the NYSE under the symbol WEI. Morgan Stanley and Citi are the joint bookrunners on the deal.

Uranium Trading Corp., a newly-formed vehicle investing in the civil uranium market, plans to raise roughly $50 million by offering about 4.5 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, it would command a market value of $54 million. Uranium Trading Corp., which was formed in 2018, has not booked revenue. The El Segundo, CA-based company plans to list on the NYSE American under the symbol UTC. B. Riley FBR is the lead bookrunner on the deal.

Alzheon, a Phase 3 biotech developing small molecule therapies for Alzheimer's disease, plans to raise $30 million by offering 6.0 million shares at a price range of $4.00 to $6.00. At the $5.00 midpoint, Alzheon would command a market value of $82 million. The Framingham, MA-based company was founded in 2013 and plans to list on the Nasdaq under the symbol ALZH. ThinkEquity and H.C. Wainwright are the joint bookrunners on the deal.

AMCI Acquisition, a blank check company formed by coal industry veteran Hans Mende, plans to raise $200 million by offering 20 million units at a price of $10. Each unit will consist of one share of common stock and one warrant to purchase one share at $11.50. At the proposed price, AMCI Acquisition would command a market value of $250 million. The Greenwich, CT-based company was founded in 2018 and plans to list on the Nasdaq under the symbol AMCIU. Jefferies is the sole bookrunner on the deal.

FinTech Acquisition III, a blank check company formed by management of The Bancorp to acquire a financial technology business, plans to raise $275 million by offering 27.5 million units at $10. Each unit will consist of one share of common stock and one half of one warrant to purchase one share of common stock at $11.50. At $10, FinTech Acquisition III would command a market value of $355 million. The Philadelphia, PA-based company was founded in 2017 and plans to list on the Nasdaq under the symbol FTACU. Cantor Fitzgerald is the sole bookrunner on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/8/18, the Renaissance IPO Index was down 3.3% year-to-date, while the S&P 500 had a gain of 6.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (OTC:VICI) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was down 14.4% year-to-date, while the ACWX was down 8.1%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Siemens Healthineers and Innogy.