The US IPO market is expected to remain active in the week ahead with eight IPOs slated to raise $4.6 billion. The diverse group features three billion-dollar deals, with issuers from diagnostics, software, solar equipment, and more.
Carlyle-backed Ortho Clinical Diagnostics (OCDX) plans to raise $1.5 billion at a $4.9 billion market cap. The company is a pure-play in vitro diagnostics business, providing diagnostic testing solutions to the clinical lab and transfusion medicine communities. The company is profitable on an EBIT basis and had a revenue retention rate of 99% in 2019. It will be leveraged post-IPO at 5.1x net debt/LTM adj. EBITDA.
Acquired by SAP (SAP) ahead of its proposed 2018 IPO, Qualtrics International (XM) plans to raise $1.2 billion at a $12.6 billion market cap. The company provides a customer and employee experience management platform to its sticky customer base of over 12,000 organizations. Qualtrics has demonstrated growth, though it operates in a highly competitive space with low barriers to entry, and it will continue to be controlled by SAP post-IPO.
Oaktree-backed solar equipment supplier Shoals Technologies Group (SHLS) plans to raise $1.0 billion at a $3.6 billion market cap. Profitable with strong growth, the company designs and manufactures products used in large solar energy projects primarily to connect panels to inverters. While it expects international expansion will help maintain growth, the company has a limited sales track record abroad.
Israel-based ZIM Integrated Shipping Services (ZIM) plans to raise $306 million at a $2.1 billion market cap. ZIM states that it is a global, asset-light container liner shipping company with leadership positions in niche markets. As of September 30, 2020, it operated a global network of 66 weekly lines, calling at 310 ports in more than 80 countries. The company plans to issue dividends worth up to 50% of annual net income.
