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US IPO Week Ahead: 3 IPOs flip the switch to kick off an active 4Q

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Three deals are set to raise a combined $669 million in the coming week. Data center operator Switch ( SWCH ) is expected to raise $469 million in the largest tech IPO since Snap ( SNAP ). A peptide-based biotech and energy-focused SPAC also plan to price.

Several deals will become able to launch this week, including a $750 million IPO from Chinese financing company Qudian (QD). After new filings hit a 2-year high in September, we anticipate October to be fairly active.

US IPO Calendar View Global Calendar
IssuerBusiness SymbolExchange Deal Size($m)Market Cap($m) Price RangeShares Filed PricingDate Bookrunners
Black Ridge AcquisitionMinneapolis, MN BRACUNasdaq $100$129 $1010,000,000 10/4 EarlyBirdCapital
Blank check company formed by Black Ridge Oil & Gas targeting the energy industry.
Rhythm PharmaceuticalsBoston, MA RYTMNasdaq $100$404 $14 - 166,666,666 10/4 Morgan Stanley,BofA Merrill,Cowen & Company
Developing peptide-based therapies to treat rare genetic obesity.
SwitchLas Vegas, NV SWCHNYSE $469$3,707 $14 - 1631,250,000 10/5 Goldman Sachs,J.P. Morgan,BMO Capital
Provides colocation services through three data center campuses.

Switch ( SWCH ) provides colocation (81% of 1H17 revenue) and connectivity (18%) services through hyperscale data center campuses. The company's main Las Vegas campus has 2 million square feet of space across eight facilities and is currently 83% occupied. It has been expanding into other geographic regions by developing data centers near Reno, NV, Grand Rapids, MI and Atlanta, GA. It ultimately plans to build out 12 million square feet across these four campuses (>3x its current footprint). Switch believes that its modular architecture and unique approach to cooling allow it to achieve above-average power densities. However, some investors may be turned off by insider dividends and its dual-class structure.

Rhythm Pharmaceuticals (RYTM) is targeting ultra-rare forms of genetic obesity. Its lead drug is a daily injectable replacement therapy that regulates satiety and appetite. The company has reported strong data from Phase 2 trials and plans to begin Phase 3 trials in the 4Q17, with data expected as soon as 1H19.

Black Ridge Acquisition (BRACU) is a SPAC focused on acquiring a business in the energy industry in North America, with an emphasis in upstream oil & gas. Chairman and CEO Kenneth DeCubellis has over 30 years of experience in the industry, including 10 years as Exxon Mobil. Mr. DeCubellis has also served as CEO of the company's sponsor, Black Ridge Oil & Gas ( ANFC ), since November 2011.

Gadsden Growth Properties (GADS), a REIT focused on non-residential real estate across the Southwestern part of the US may also price during the upcoming week.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 27.6 % year-to-date, ahead of the S&P 500, which is up 12.1 % . Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). The Renaissance International IPO Index is up 24.9 % year-to-date, while the ACWX is up 20.8 % . Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include ABN AMRO Group and Covestro . To find out if this is the best ETF for you, visit ourIPO Investing page . The article US IPO Week Ahead: 3 IPOs flip the switch to kick off an active 4Q 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, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

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


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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