U.S. IPO Weekly Recap: A Pair Of Jeans And A Decacorn

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Includes: ALIT, BJS, DTIL, GNLN, HOOK, ILSUU, LEVI, LYFT, MNRL, PINS, RUHN, TIGR, TPTX, YJ
by: Renaissance Capital IPO Research
Summary

After more than 30 years, iconic jeans brand Levi Strauss & Co. returned to the public market this week, along with UP Fintech Holding and another SPAC, Insurance Acquisition.

Photo sharing platform Pinterest filed for an IPO that we estimate could raise $1 billion.

Alight, the Blackstone-backed provider of outsourced cloud-based HR services, was set to raise $758 million at a $4.8 billion market cap this week but postponed its IPO.

After more than 30 years, iconic jeans brand Levi Strauss & Co. (NYSE:LEVI) returned to the public market this week, along with UP Fintech Holding (NASDAQ:TIGR) and another SPAC, Insurance Acquisition (NASDAQ:ILSUU).

Photo sharing platform Pinterest (PINIT) filed for an IPO that we estimate could raise $1 billion. The "decacorn" booked $756 million in revenue for 2018, up 60% from 2017. The company last raised funding in 2017 at a $12.3 billion valuation, and is reportedly targeting a $12 billion market value on its IPO.

Cloud-based video and web conferencing platform Zoom Video Communications (NASDAQ:ZM), Chinese e-commerce site Yunji (YJ), vaporization products distributor Greenlane Holdings (NASDAQ:GNLN), mineral royalty company Brigham Minerals (NYSE:MNRL), and two biotechs, Hookipa Pharma (NASDAQ:HOOK) and Turning Point Therapeutics (NASDAQ:TPTX), also submitted initial filings with the SEC this week.

Alight (NASDAQ:ALIT), the Blackstone-backed provider of outsourced cloud-based HR services, was set to raise $758 million at a $4.8 billion market cap this week but postponed its IPO. The company did not disclose a reason for postponing the deal. BJ Services (BJS), a leading provider of hydraulic fracturing and pressure pumping services, withdrew its IPO this week. The company originally filed in 2017 for an estimated $300 million, and had not updated its prospectus since.

Rideshare giant Lyft (NASDAQ:LYFT), cancer biotech Precision BioSciences (NASDAQ:DTIL), and Ruhnn Holding (NASDAQ:RUHN), an e-commerce platform used by Chinese internet celebrities to sell fashion items, all launched this week.

3 IPOs During the Week of March 18th, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 03/22

UP Fintech Holding

$104M

$1,168M

33%

+37%

+35%

Online brokerage focused on global investors in China.

Levi Strauss

$623M

$6,891M

13%

+32%

+30%

World's largest denim apparel brand.

Insurance Acquisition

$131M

$180M

0%

n/a

+0%

Blank check company backed by Cohen & Company and targeting the insurance industry.

Levi, the world's largest denim apparel brand, raised $623 million at a market cap of $6.9 billion. It priced at $17, above the range of $14-$16. The company traded up 32% on its first day, and finished the week up 30% from its IPO, supported by great brand recognition and accelerated growth of 14% in 2018.

Online brokerage UP Fintech Holding raised $104 million at a market cap of $1.2 billion. The company traded up 37% on its first day, and finished the week up 35% from its IPO. Its first day return topped that of close peer Futu Holdings (NASDAQ:FHL), which traded up 28% on its first day but has since climbed to 43% above its IPO.

The SPAC trend continued with Insurance Acquisition. The insurance blank check company backed by Cohen & company raised $131 million at a market cap $180 million.

7 Filings During the Week of March 18th, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Hookipa Pharma

$86M

Health Care

BofA ML

Phase 2 biotech developing T cell immunotherapies for various cancers.

Pinterest

$1,000M

Technology

Goldman

Operates a pinboard-style social photo sharing platform.

Zoom

$300M

Technology

Morgan Stanley

Provides a cloud-based video and web conferencing platform.

Turning Point

$100M

Health Care

Goldman

Early stage biotech developing tyrosine kinase inhibitors for cancer treatment.

Yunji

$1,000M

Technology

Morgan Stanley

Chinese e-commerce site that uses a social platform to promote its products.

Greenlane Holdings

$92M

Consumer Discretionary

Cowen

National distributor of vaporization products and accessories.

Brigham Minerals

$100M

Energy

Credit Suisse

Owns oil and gas mineral royalty interests underlying 68,800 acres across the US.

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.