U.S. IPO Weekly Recap: Your Uber Has Arrived

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Includes: APLT, AXLA, BRPM.U, JMIA, MIST, NXTC, ONDS, PD, RRBI, TUFN, UBER
by: Renaissance Capital IPO Research
Summary

The IPO market is in full swing with 14 filings this week, led by Uber (UBER), the world's largest ridesharing platform.

Three IPOs raised $522 million in the IPO market this past week.

Jumia Technologies led the week, surging 76% on its first day.

The IPO market is in full swing with 14 filings this week, led by Uber (UBER), the world's largest ridesharing platform. We estimate that Uber could raise as much as $10 billion as it reportedly seeks a $90 to $100 billion valuation, making it the largest IPO in over five years. The San Francisco, CA-based company booked revenue of $11.3 billion in 2018, a 42% increase over the prior year, but burned $2.1 billion in free cash flow. Uber follows closely behind the IPO of competitor Lyft (NASDAQ:LYFT), which has fallen well below its IPO price (-17%), and traded off significantly in the days leading up to the Uber filing.

4 IPOs During the Week of April 8th, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 04/12

Jumia (NYSE:JMIA)

$196M

$1,149M

0%

+76%

+76%

Africa's largest e-commerce platform.

PagerDuty (NYSE:PD)

$218M

$2,076M

20%

+59%

+65%

Provides a SaaS platform that monitors and alerts businesses of IT issues.

Tufin Software (NYSE:TUFN)

$108M

$537M

8%

+36%

+50%

Provides enterprise software for managing network security policies.

B. Riley Principal Merger (NYSE:BRPM.U)

$125M

$161M

0%

+0%

+0%

Blank check company formed by diversified financial services firm B. Riley Financial.

Three IPOs raised $522 million in the IPO market this past week. Jumia Technologies led the week, surging 76% on its first day. The company raised $196 million at a $1.15 billion market cap, in line with expectations. While the company has significant losses to date, it looks to take advantage of the massive e-commerce opportunity in Africa.

PagerDuty, the first SaaS deal of the year, priced above its upwardly revised range, raising $218 million at market cap of $2.1 billion. The company popped 59% on its first trading day and finished the week even higher at +65% from its IPO, as investors continue to pay up for high-growth SaaS companies.

Tufin Software priced its IPO at the high end of the range, raising $108 million at a $537 million market cap. The company traded up 36% on its first day and finished the week +50% from its IPO.

One SPAC, B. Riley Principal Merger raised $125 million.

14 Filings During the Week of April 8th, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Applied Therapeutics (APLT)

$86M

Health Care

Citi

Phase 2 biotech developing therapies for diabetic cardiomyopathy.

Axcella Health (AXLA)

$86M

Health Care

Goldman

Developing therapeutics and dietary products for amino acid dysregulation.

Cortexyme (CRTX)

$86M

Health Care

BofA ML

Phase 1b biotech developing therapies for Alzheimer's disease.

Mayville Engineering (MEC)

$100M

Industrials

Baird

Provides end-to-end manufacturing services to OEM customers.

Milestone Pharmaceuticals (MIST)

$86M

Health Care

Jefferies

Phase 3 biotech developing therapies for heart rate conditions.

NextCure (NXTC)

$86M

Health Care

Morgan Stanley

Clinical-stage biotech developing cancer immunotherapies.

Ondas Holdings (OTCQB:ONDS)

$46M

Communication Services

Provides a wireless radio system for broadband networks.

Parsons (PSN)

$500M

Industrials

Goldman

Provides technology-driven defense, intelligence, and infrastructure solutions.

South Plains Financial (SPFI)

$50M

Financials

KBW

West Texas commercial bank with 21 full-service locations.

AGBA Acquisition (AGBAU)

$40M

SPAC

Maxim

Blank check company targeting the services sector in China.

Diamond Eagle Acquisition (DMDEU.RC)

$350M

SPAC

Fifth blank check company formed by entertainment veteran Jeff Sagansky.

Uber (UBER)

$10,000M

Technology

Morgan Stanley

Operates the world's largest on-demand ridesharing network.

Red River Bancshares (RRBI)

$30M

Financials

FIG Partners

Louisiana commercial bank with 24 locations across the state.

So-Young International (SY)

$150M

Technology

Deutsche Bank

China-based online marketplace for plastic surgery services.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/11/19, the Renaissance IPO Index was up 33.0% year-to-date, while the S&P 500 had a gain of 15.9%. Renaissance Capital's IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Elanco (NYSE:ELAN) and VICI Properties (OTC:VICI). The Renaissance International IPO Index was up 12.2% year-to-date, while the ACWX was up 12.9%. Renaissance Capital's International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include SoftBank (OTCPK:SFTBY) and Xiaomi (XI).

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