U.S. IPO Week Ahead: Houston We Have Lyft Off

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Includes: DTIL, GNFT, LYFT
by: Renaissance Capital IPO Research
Summary

The long-awaited IPO of rideshare giant Lyft will finally hit the market in the week ahead.

In total, three IPOs plan to raise roughly $2.3 billion in the IPO market, a further signal of an IPO market continuing to heat up after roughly $858 million was raised last week led by Levi Strauss.

A blank check company is also expected to list this week.

The long-awaited IPO of rideshare giant Lyft (NASDAQ:LYFT) will finally hit the market in the week ahead. In total, three IPOs plan to raise roughly $2.3 billion in the IPO market, a further signal of an IPO market continuing to heat up after roughly $858 million was raised last week led by Levi Strauss (NYSE:LEVI). A blank check company is also expected to list this week.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Genfit (NASDAQ:GNFT)
Loos, France

$132M
$955M

$26.33
5,000,000

Leerink
Barclays

Phase 3 French biotech developing therapies for NASH.

8i Enterprises Acq. (JFKKU)

$50M
$65M

$10
5,000,000

Chardan

Blank check company backed by 8i Capital and targeting a high-growth business in Asia.

Precision BioSciences (NASDAQ:DTIL)
Durham, NC

$126M
$870M

$15 - $17
7,900,000

JP Morgan
Goldman

Early stage biotech developing off-the-shelf CAR T cell cancer therapies.

Lyft
San Francisco, CA

$2,000M
$21,927M

$62 - $68
30,770,000

JP Morgan
Credit Suisse

Operates an on-demand ridesharing app that connects riders and drivers.

Lyft plans to raise $2 billion by offering shares at $62-68; at the midpoint, it would be valued at $21.9 billion. That makes it the largest IPO of the year by both deal size and market value. Lyft is coming to market after posting 103% revenue growth in 2018 and a market share of 39%, up from 22% in 2016. That said, it remains highly unprofitable, with losses approaching $900 million in 2018. Lyft's IPO will be a bellwether for other large tech IPOs expected this year, most notably its rideshare rival Uber (UBER).

Genfit, a Phase 3 NASH biotech, plans to raise $132 million at $26.33 in its US debut. At that price, it would be valued at $955 million. The company is listed on the Euronext Paris and has been trading well year-to-date along with its NASH peers.

Precision BioSciences, an early stage cancer biotech, plans to raise $126 million at $15-$17; at the midpoint, it would be valued at $870 million. Harpoon (NASDAQ:HARP), another early stage gene therapy biotech, priced its IPO in February. The company has traded down 24% since its IPO.

Also expected this week is 8i Enterprises (JFKKU), a blank check company backed by 8i Capital targeting a high-growth Asian business.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/21/19, the Renaissance IPO Index was up 34.4% year-to-date, while the S&P 500 had a gain of 13.88%. 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 up 9.4% year-to-date, while the ACWX was up 11.7%. 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.