Following the busiest week of 2017 with ten IPOs coming to market, the following week will be another record breaker will 12 IPOs scheduled to raise a combined $2.1 billion. The week will be led by suburban office REIT Workspace Property Trust , looking to raise $527 million; the deal was initially expected to price this past week, but postponed at the last minute. Other notable deals include online personal-styling service Stitch Fix , Chinese wealth management platform Jianpu Technology , automated email platform SendGrid and specialty chemical producer MPM Holdings .
US IPO Calendar
Link to Global Calendar
Deal Size($m)Market Cap($m)
Price RangeShares Filed
Workspace Property TrustHorsham, PA
$12.00 - $15.0039,000,000
Goldman Sachs,J.P. Morgan,BofA Merrill,6 more...
Recently formed REIT focused on suburban office properties.
$13.50 - $15.507,700,000
Morgan Stanley,J.P. Morgan
Provides a cloud-based platform for emails and marketing campaigns.
$15.00 - $17.003,125,000
Citi,Cowen & Company,Piper Jaffray
Developing antibodies designed to prevent serious infectious diseases.
$8.50 - $10.5022,500,000
Goldman Sachs,Morgan Stanley,J.P. Morgan
Provides a wealth management platform in China.
MPM HoldingsWaterford, NY
$23.00 - $25.0014,583,333
J.P. Morgan,Goldman Sachs,Credit Suisse,4 more...
Restructured global producer of specialty silicones and other chemical additives.
Bluegreen VacationsBoca Raton, FL
$16.00 - $18.006,198,648
Stifel,Credit Suisse,BofA Merrill,1 more...
Sells timeshares and manages resorts in the US.
$14.00 - $17.0019,500,000
J.P. Morgan,UBS Investment,HSBC Corporation,1 more...
Leading Argentine food company offering branded flour, oil and biscuits.
SailPoint TechnologiesAustin, TX
$9.00 - $11.0020,000,000
Morgan Stanley,Citi,Jefferies,1 more...
Provides identity governance software to enterprises.
$14.00 - $16.006,400,000
Jefferies,Leerink Partners,BMO Capital
Commercializing an injectable version of an intravenous drug for heart failure.
Stitch FixSan Fancisco, CA
$18.00 - $20.0010,000,000
Goldman Sachs,J.P. Morgan,Barclays,1 more...
Online personal-styling service and clothing retailer.
Level BrandsCharlotte, NC
$6.00 - $6.001,700,000
Launching consumer lifestyle brands inspired by Kathy Ireland.
VC-Backed High Growth
Founder led and backed by Baseline and Benchmark, Stitch Fix ( SFIX ) has generated over $1 billion in sales through its on-demand and subscription clothing offerings. However, customer and revenue growth decelerated significantly in FY17 and plans for increased market spend and further expansion into lower-margin lines will pressure margins. We note that its established apparel e-commerce peers have not traded well over the last three months, and are concerned by recent management turnover combined with insider selling.
Backed by Foundry and Bessemer Venture Partners, SendGrid ( SEND ) is a play on the increasing importance of effective B2C email communication. The company's self-service sales model has enabled it to expand margins and reach profitability on a revenue base of under $100 million; however, a ramp-up in S&M will likely hold back near-term margins.
Acquired by Thoma Bravo in 2014, founder-led SailPoint (SAIL) offers a leading, next-generation identity and access management solution to large enterprises. Unlike many recent tech IPOs, SailPoint has grown rapidly at 30%+ while maintaining profitability (12% LTM EBITDA margin). The company stands to benefit from the rising risk of security breaches and growing compliance requirements and management expects to top-line growth to continue at 25-30%.
Chinese & Argentine ADRs
Chinese wealth management platform Jianpu Technology (JT) will be the 14th Chinese ADR IPO this year, following three Chinese IPOs last week: after-school math tutoring services provider Four Seasons (FEDU: +5.3% from IPO price), mobile search engine Sogou (SOGO: +6.5%) and peer-to-peer online platform PPDAI Group (PPDF: +0.6%).
Leading Argentine food company Cañuelas Mill (MOLC) will be the third Argentine ADR IPO in the 2H17, following Loma Negra (LOMA: +12.2% from 10/31/17 IPO) and Despegar.com (DESP: +10.2% from 9/19/17 IPO), taking advantage of positive investor sentiment toward the country under a new market friendly government. The company plans to raise $302 million (50% insider selling) to reduce its high debt load and find
liquidity for the Navilli family owners.
Specialty Real Estate
Led by former Mack-Cali ( CLI ) executives, Workspace Property Trust (WSPT) is a recently formed pure-play suburban office REIT. Management believes it will benefit from industry fundamentals like Millennials moving to the suburbs and sees a large consolidation opportunity being the only publicly traded REIT to focus exclusively on suburban office.
Taken private by BBX Capital in 2013, Bluegreen Vacations (BXG) is a leading timeshare company that caters to the underpenetrated millennial/gen-x demographic through its flexible points-based platform. The company has been shifting towards a capital-light model by forming relationships with third-party developers and selling timeshares on commission and earning management fees for operating their resorts (60%+ of 2016 sales). That said, the company is subject to several outstanding legal issues with existing owners and employees and BBX is selling 42% of the deal.
Injectable drug developer scPharmaceuticals (SCPH) plans to raise $96 million. Its lead product candidate, Furoscix, is a subcutaneous formulation of furosemide delivered via a patented infusor for worsening heart failure in an outpatient setting. The pre-revenue company filed an NDA for Furoscix with the FDA in August 2017 and has also filed INDs to deliver injectable versions of IV-delivered antibiotics.
OrbiMed-backed Arsanis (ASNS) plans to raise $50 million; insiders intend to purchase up to $20 million (40%) of the IPO. Its lead product candidate, ASN100, is a monoclonal antibody in Phase 2 trials for the prevention of Staphylococcus aureus pneumonia in high-risk, mechanically ventilated patients.
QTCB-listed AMERI Holdings (AMRH) is seeking to raise $12 million in a Nasdaq uplisting. The outsourced IT services provider booked $47 million in sales during the LTM with a -14% EBITDA margin.
Level Brands (LEVB) plans to raise $10 million in a best-efforts Reg A+ IPO and is excluded from RC's IPO stats. The company booked $3.6 million in sales during the LTM with a -27% EBITDA margin.
IPO Market Snapshot
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The article US IPO Week Ahead: Back-to-back record activity with 12 IPOs set to price originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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