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 i t report edly 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 ( LYFT ), which has fallen well below its IPO price (-17%), and traded off significantly in the days leading up to the Uber filing.
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| 4 IPOs During the Week of April 8th, 2019 |
|Market Cap |
|Price vs. |
|First Day |
| Jumia ( JMIA ) ||$196M ||$1,149M ||0% ||+76% ||+76% |
| Africa's largest e-commerce platform. |
| PagerDuty ( PD ) ||$218M ||$2,076M ||20% ||+59% ||+65% |
| Provides a SaaS platform that monitors and alerts businesses of IT issues. |
| Tufin Software (TUFN) ||$108M ||$537M ||8% ||+36% ||+50% |
| Provides enterprise software for managing network security policies. |
| B. Riley Principal Merger (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 ( JMIA
) lead 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 ( PD
), 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 (TUFN) 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 (BRPM.U), raised $125 million.
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| 14 Filings During the Week of April 8th, 2019 |
|Sector ||Lead |
| 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 (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. |
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 ( IPO
) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (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 ( IPOS
) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
The article US IPO Weekly Recap: Your Uber has arrived
originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure:
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO)
, Renaissance International ETF (symbol: IPOS)
, or separately managed institutional accounts may have investments in securities of companies mentioned.