US IPO Week Ahead: IPO market cashes in on crypto as Canaan leads 5-IPO week

Five IPOs and two SPACs plan to raise $634 million in the week ahead.

One of the leading makers of cryptocurrency mining equipment, Canaan (CAN) plans to raise $100 million at a $1.6 billion market cap. It originally filed to raise $400 million (and in 2018 was rumored to be targeting over $1 billion). The #2 player in the space, Canaan has shown that it’s capable of being highly profitable, with a 61% net margin in the 1Q18. However, its performance is heavily influenced by Bitcoin prices; a price slump earlier in the year caused Canaan’s sales to fall 96% in the 1Q19.

Being carved out of Consolidated-Tomoka (NYSE: CTO), retail and office REIT Alpine Income Property Trust (PINE) plans to raise $150 million at a $182 million market cap and a 4% yield at the midpoint. Alpine Income is small with a concentrated tenant base, but it has a 100% leased portfolio and a large acquisition pipeline that should drive future growth.

Chinese debt collector YX Asset Recovery (YXR) plans to raise $81 million at a $541 million market cap. YX Asset Recovery is the largest collector of tertiary receivables in China with a 9% market share, according to iResearch, with roughly $4 billion in receivables under collection as of 6/30/19.

MegaChips spin off SiTime (SITM), a fabless producer of silicon timing systems, plans to raise $60 million at a $200 million market cap. The semiconductor industry is highly cyclical and is currently experiencing a downturn, but SiTime has established itself as a leader in the silicon MEMS oscillators market, claiming a 90%+ share.

Micro-cap auto e-tailer LMP Automotive Holdings (LMPX) plans to raise $18 million at a $51 million market cap. The company had high growth in 2018, but revenue fell 28% in the 9mo19, and its gross margin has yet to swing positive.

Former Ooyala executives’ SPAC Software Acquisition Group (SAQNU) plans to raise $125 million, and Metalmark Capital and Avego Healthcare Capital’s joint venture Amplitude Healthcare Acquisition (AMHCU) plans to raise $100 million.

Lock-up periods for Bicycle Therapeutics (BCYC), IDEAYA Biosciences (IDYA), and Rattler Midstream (RTLR) will be expiring this week on Tuesday, November 19.

U.S. IPO Calendar
Issuer Business Deal Size Market Cap Price Range Shares Filed Top Bookrunners
Amplitude Healthcare Acq. (AMHCU)New York, NY $100M $125M $10 10,000,000 BMO Leerink
Blank check company formed by Metalmark Capital and Avego Healthcare Capital targeting healthcare in the US or Europe.
YX Asset Recovery (YXR)Changsha, China $81M $541M $7.75 - $9.75 9,282,000 Deutsche Bank CMB International Capital
Provides delinquent consumer debt collection services in China.
Canaan (CAN)Hangzhou, China $100M $1,581M $9 - $11 10,000,000 Citi China Ren.
Leading maker of cryptocurrency mining equipment.
SiTime (SITM)Santa Clara, CA $60M $200M $13 - $15 4,300,000 Barclays Stifel
Fabless producer of silicon timing systems being spun out of MegaChips.
Alpine REIT (PINE)Daytona Beach, FL $150M $182M $19 - $21 7,500,000 Raymond James Baird
Single-tenant commercial net lease REIT formed by Consolidated-Tomoka.
LMP Automotive (LMPX)Plantation, FL $18M $51M $5 - $6 3,227,500 ThinkEquity
Operates an e-commerce site where users can buy, sell, and rent cars.
Software Acquisition (SAQNU)Las Vegas, NV $125M $156M $10 12,500,000 B. Riley FBR
Blank check company led by former Ooyala officers targeting a software company.

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Alpine Income Property Trust

Amplitude Healthcare Acquisition

Canaan CAN

LMP Automotive Holdings


Software Acquisition Group

YX Asset Recovery

IPO Market Snapshot

US IPO Week Ahead: IPO market cashes in on crypto as Canaan leads 5-IPO week

Investment Disclosure: Renaissance IPO ETF (symbol: IPO) Renaissance International ETF (symbol: IPOS)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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