U.S. IPO Week Ahead: Dun & Bradstreet Returns To Public Market In Shortened 4 IPO Week

Jun. 27, 2020 11:03 AM ETDNB, LMND, DDI, ACCD1 Comment

Summary

  • Four IPOs are expected to raise $2 billion before the Fourth of July, led by commercial data analytics provider Dun & Bradstreet.
  • Insurtech startup Lemonade plans to raise $270 million at a $1.4 billion market cap.
  • DoubleDown Interactive, a leading developer and publisher of social casino mobile games, plans to raise $198 million at a $896 million market cap.
  • Benefits management platform Accolade plans to raise $175 million at a market cap of $1.0 billion.

Four IPOs are expected to raise $2 billion before the Fourth of July, led by commercial data analytics provider Dun & Bradstreet (DNB).

Dun & Bradstreet plans to raise $1.3 billion at a market cap of $8 billion. The company was taken private for $6.9 billion including debt in February 2019 by an investor consortium led by Cannae Holdings, Black Knight, and CC Capital, with the goal of remedying "operational and execution issues." Dun & Bradstreet serves many of the largest enterprises in the world, including roughly 90% of the Fortune 500 and 60% of the Global 500 in 2019. While revenue growth accelerated to 17% in the 1Q20, quarterly growth has been lumpy.

Insurtech startup Lemonade (LMND) plans to raise $270 million at a $1.4 billion market cap. The Millennial-focused company provides an online self-serve renters and homeowners insurance platform and has captured a 7% market share in New York in three and a half years. Fast-growing and highly unprofitable, Lemonade is coming to market at a steep discount to its last private round.

DoubleDown Interactive (DDI), a leading developer and publisher of social casino mobile games, plans to raise $198 million at a $896 million market cap. Acquired by Korea's DoubleU Games in 2017, Seattle-based DoubleDown has a strong track record of profitability and industry-leading monetization. However, its focus on profitability weighed on revenue growth in 2019, and it relies on a small percentage of players for all revenue.

Benefits management platform Accolade (ACCD) plans to raise $175 million at a market cap of $1.0 billion. The company provides its healthcare benefits management platform primarily for self-insured employers, targeting an estimated $11+ billion market opportunity. The company has demonstrated strong growth and improving margins, though its customer acquisitions have slowed in the year-to-date period.

U.S. IPO Calendar

Issuer

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Renaissance Capital provides pre-IPO research to institutional investors and investment banks. The Firm manages two IPO-focused funds: The Renaissance IPO ETF (NYSE: IPO) and the Renaissance International IPO ETF (NYSE: IPOS). Individual investors can get a free overview of the IPO market on www.renaissancecapital.com, and try a free trial of our premium platform, IPO Pro (ipopro.renaissancecapital.com). Through Renaissance Capital’s pre-IPO research service, institutional investors get an independent opinion, in-depth fundamental analysis, and customizable financial models on all IPOs.

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