U.S. IPO Week Ahead: Just 2 Blank Checks During Short Holiday Week

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Includes: CHWY, CRWD, GIG, GIX.U, IDYA, PAACU
by: Renaissance Capital IPO Research
Summary

Just two SPACs are scheduled to IPO in the week ahead, as Wall Street breaks for Memorial Day ahead of an active summer.

GigCapital2 plans to raise $130 million.

After delaying its offering this week, Proficient Alpha Acquisition plans to raise $100 million in the week ahead.

Just two SPACs are scheduled to IPO in the week ahead, as Wall Street breaks for Memorial Day ahead of an active summer. Led by Avi Katz, GigCapital2 (GIX.U) plans to raise $130 million. The first GigCapital (NYSE:GIG) raised $125 million in 2017, and earlier this year announced its acquisition of cloud API provider Kaleyra. After delaying its offering this week, Proficient Alpha Acquisition (NASDAQ:PAACU) plans to raise $100 million in the week ahead.

CrowdStrike (NASDAQ:CRWD), which provides cloud-native endpoint security software for large enterprises, and Chewy (NYSE:CHWY), an online retailer owned by PetSmart that sells assorted pet supplies, could both launch in the week ahead.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
Proficient Alpha Acq. (PAACU)
New York, NY
$100M
$126M
$10
10,000,000
I-Bankers
Blank check company targeting a financial services business in China.
GigCapital2 (GIX.U)
Palo Alto, CA
$130M
$168M
$10
13,000,000
EarlyBird
Northland
Blank check company formed by semiconductor veteran Avi Katz to acquire a TMT business.

Just two IPOs are expected to price this week:

GigCapital2 (GIX.U), a blank check company formed by semiconductor veteran Avi Katz to acquire a TMT business, plans to raise $130 million by offering 13.0 million units at a price of $10.00. At that price, GigCapital2 would command a market value of $168 million. GigCapital2 was founded in 2019. The Palo Alto, CA-based company plans to list on the NYSE under the symbol GIX.U. EarlyBirdCapital and Northland Securities are the joint bookrunners on the deal.

Proficient Alpha Acquisition (PAACU), a blank check company targeting a financial services business in China, plans to raise $100 million by offering 10 million units at a price of $10.00. At that price, Proficient Alpha Acquisition would command a market value of $126 million. Proficient Alpha Acquisition was founded in 2018 and plans to list on the Nasdaq under the symbol PAACU. I-Bankers Securities is the sole bookrunner on the deal.

Last week, there were three IPO pricings. Rattler Midstream was the week's largest deal, raising $665 million, while biotech IDEAYA Biosciences (NASDAQ:IDYA) was the week's winner. Peloton Therapeutics had been scheduled, but was acquired by Merck.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/23/19, the Renaissance IPO Index was up 29.9% year-to-date, while the S&P 500 had a gain of 12.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (NYSE:ELAN) and Okta (NASDAQ:OKTA). The Renaissance International IPO Index was up 10.2% year-to-date, while the ACWX was up 9.8%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.

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