U.S. IPO Week Ahead: A Kansas Bank And A Chinese Fintech Wrap Up The Summer IPO Market

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Includes: AFYA, AMK, BIVI, CFB, DOYU, FLUX, FULC, GMAB, IFS, JFU, MDLA, MIRM, PHR, WIMI
by: Renaissance Capital IPO Research
Summary

A Kansas bank and a Chinese fintech are scheduled for the week ahead, the last crop of offerings before the IPO market's annual August break.

CrossFirst Bankshares has about $4.6 billion in assets, with seven locations across KS, OK, TX, and MO.

Chinese lending platform 9F offers digital financial accounts to consumers, serving borrowers, investors, and merchants.

A Kansas bank and a Chinese fintech are scheduled for the week ahead, the last crop of offerings before the IPO market's annual August break.

CrossFirst Bankshares (NASDAQ:CFB) has about $4.6 billion in assets, with seven locations across KS, OK, TX, and MO. While its efficiency ratio and ROE are below peers, the bank has achieved relatively faster growth, and its return metrics are improving.

Chinese lending platform 9F (JFG) offers digital financial accounts to consumers, serving borrowers, investors, and merchants. Revenue declined 18% in 2018 to $789 million due to stepped-up lending regulation in China, but 9F's net margin soared to 36%, and revenue growth returned in the 1Q19 (+10%). The company's quick roadshow, low float-to-market cap, and indications of interest for "a substantial amount of ADSs" all suggest a largely pre-bought deal.

Up to three holdovers from last week may also price US IPOs, including Chinese AR play WiMi Hologram (WIMI), and two micro-caps listed on the OTC, biotech BioVie (OTCQB:BIVI) and battery maker Flux Power (OTCQB:FLUX).

Street research is expected this week for nine recent IPOs. On Monday: Phreesia (NYSE:PHR), AssetMark (NYSE:AMK), Genmab (NASDAQ:GMAB), Fulcrum Therapeutics (NASDAQ:FULC) DouYu International (NASDAQ:DOYU), and Mirum Pharmaceuticals (NASDAQ:MIRM). On Tuesday: Afya (NASDAQ:AFYA), Intercorp Financial (NYSE:IFS), and Medallia (NYSE:MDLA).

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

BioVie
Los Angeles, CA

$15M
$77M

$11.44
1,311,189

ThinkEquity

Early stage biotech developing therapies for cirrhosis.

9F
Beijing, China

$76M
$1,690M

$7.50 - $9.50
8,900,000

Credit Suisse
Haitong

Online consumer lending platform in China.

CrossFirst Bankshares
Leawood, KS

$114M
$840M

$15 - $17
7,111,589

KBW
Raymond James

Kansas bank with seven full-service locations across four states.

Flux Power
Vista, CA

$13M
$59M

$9
1,449,275

Roth Cap.
Maxim

Manufactures and sells lithium-ion batteries and storage solutions.

WiMi Hologram
Beijing, China

$34M
$496M

$7.50 - $9.50
4,000,000

Benchmark
Maxim

Chinese provider of ad services and software used in holographic augmented reality.

BioVie, an early stage biotech developing therapies for cirrhosis, plans to raise $15 million by offering 1.3 million shares at a price of $11.44. At that price, it would command a market value of $77 million. The Los Angeles, CA-based company was founded in 2013, and plans to list on the Nasdaq under the symbol BIVI. ThinkEquity is the lead bookrunner on the deal. It is currently listed on the OTC under the symbol BIVI.

9F, an online consumer lending platform in China, plans to raise $76 million by offering 8.9 million ADSs (24% insider) at a price range of $7.50 to $9.50. Outside investors have indicated an interest in purchasing a substantial amount of the IPO. At the midpoint of the proposed range, 9F would command a fully diluted market value of $1.9 billion. The Beijing, China-based company was founded in 2006 and booked $805 million in revenue for the 12 months ended March 31, 2019. It plans to list on the NYSE under the symbol JFG. Credit Suisse, Haitong International, CITIC CLSA, China Investment Securities International, and 9F Primasia Securities are the joint bookrunners on the deal.

CrossFirst Bankshares, a Kansas bank with seven full-service locations across four states, plans to raise $114 million by offering 7.1 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, it would command a market value of $840 million. CrossFirst Bankshares, which was founded in 2008, booked $135 million in revenue over the last 12 months. The Leawood, KS-based company plans to list on the Nasdaq under the symbol CFB. Keefe Bruyette Woods, Raymond James and Stephens Inc. are the joint bookrunners on the deal.

Flux Power Holdings, which manufactures and sells lithium-ion batteries and storage solutions, plans to raise $13 million by offering 1.4 million shares at a price range of $9.00 to $9.00. At the midpoint of the proposed range, Flux Power Holdings would command a market value of $59 million. Flux Power Holdings, which was founded in 1998, booked $7 million in sales over the last 12 months. The Vista, CA-based company plans to list on the Nasdaq under the symbol FLUX. Roth Capital and Maxim Group LLC are the joint bookrunners on the deal. The company is currently listed on the OTC under the symbol FLUX.

WiMi Hologram Cloud, a Chinese provider of ad services and software used in holographic augmented reality, plans to raise $34 million by offering 4.0 million ADSs at a price range of $7.50 to $9.50. At the midpoint of the proposed range, WiMi Hologram would command a market value of $496 million. WiMi Hologram, which was founded in 2015, booked $37 million in sales over the last 12 months. The Beijing, China-based company plans to list on the Nasdaq under the symbol WIMI. The Benchmark Company, Maxim Group LLC, China Merchants Securities, AMTD Global Markets, BOCI, and three others are the joint bookrunners on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/8/19, the Renaissance IPO Index was up 38.9% year-to-date, while the S&P 500 had a gain of 18.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Elanco (NYSE:ELAN). The Renaissance International IPO Index was up 9.7% year-to-date, while the ACWX was up 9.1%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.

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