U.S. IPO Week Ahead: 2 Growth IPOs Kick Off A More Active March

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Includes: ALIT, CSTX, FHL, LEVI, SWAV
by: Renaissance Capital IPO Research
Summary

The February lull is over, and March is kicking off with two growth IPOs targeting almost $200 million in total.

First up is ShockWave Medical, which is planning to raise $75 million at a market cap of $428 million.

Hong Kong-based Futu Holdings has rapidly become a favorite online brokerage among young Chinese investors.

The February lull is over, and March is kicking off with two growth IPOs targeting almost $200 million in total.

First up is ShockWave Medical (NASDAQ:SWAV), which is planning to raise $75 million at a market cap of $428 million. The company is producing high losses, and its sonic wave-based device for treating cardiovascular disease has yet to reach significant scale with just $12 million in 2018 revenue. That said, its growth to date has been impressive, and it operates in a multi-billion-dollar market.

Hong Kong-based Futu Holdings (NASDAQ:FHL) has rapidly become a favorite online brokerage among young Chinese investors. While it hit a speed bump in the fourth quarter, the profitable company saw its sales grow 160% in 2018 to more than $100 million. The Tencent-backed company plans to raise $120 million at a valuation of $1.3 billion

Initial filings should continue to pick up, and look out for potential launches from jean giant Levi Strauss & Co. (NYSE:LEVI), HR solutions provider Alight (NASDAQ:ALIT), and liver disease biotech Cirius Therapeutics (CSTX).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

ShockWave Medical
Santa Clara, CA

$75M
$428M

$14 - $16
5,000,000

Morgan Stanley
BofA ML

Sells medical systems used in treating cardiovascular disease.

Futu Holdings (FHL)

$120M
$1,349M

$10 - $12
10,900,000

Goldman (Asia)
UBS

Fast-growing low-commission online brokerage in China.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/28/19, the Renaissance IPO Index was up 29.7% year-to-date, while the S&P 500 had a gain of 11.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (OTC:VICI) and Altice (NYSE:ATUS). The Renaissance International IPO Index was up 9.9% year-to-date, while the ACWX was up 9.7%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.