US IPO Week Ahead: 2019 tech deals double in 3-IPO week led by PagerDuty
The year's tech IPO count is set to double in the week ahead, from three to six. A blank check company also plans to go public.
PagerDuty (PD) is the year's first enterprise software unicorn, a core component of tech's upcoming 2019 stampede. Raising $181 million at a proposed $1.7 billion valuation, PagerDuty boasts fast growth and a loyal customer base, with a net retention rate of 140% in the past year. However, it also has a history of losses. Israel-based Tufin Software Technology (TUFN) meanwhile has shown positive EBITDA, but growth has noticeably slowed in the most recent quarter. The cybersecurity company plans to raise $100 million at a market cap of almost $500 million.
Jumia Technologies (JMIA) has racked up an accumulated deficit of nearly $1 billion in order to become Africa's largest e-commerce platform. At the point, the company's losses could cause it to flame out, but its market position could also enable it to become the Africa's Amazon.com.
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This week's upcoming IPOs:
Jumia Technologies (JMIA), Africa's largest e-commerce platform, plans to raise $196 million by offering 13.5 million shares at a price range of $13.00 to $16.00. At the midpoint of the proposed range, it would command a market value of $1.2 billion. Jumia, which was founded in 2012, booked $147 million in sales over the last 12 months. The Berlin, Germany-based company plans to list on the NYSE under the symbol JMIA. Morgan Stanley, Citi, Berenberg Bank and RBC Capital Markets are the joint bookrunners on the deal. Mastercard has agreed to invest €50 million in a concurrent private placement.
PagerDuty (PD), which provides a SaaS platform that monitors and alerts businesses of IT issues, plans to raise $181 million by offering 9.1 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, it would command a market value of $1.7 billion. PagerDuty, which was founded in 2009, booked $118 million in sales over the last 12 months. The San Francisco, CA-based company plans to list on the NYSE under the symbol PD. Morgan Stanley, J.P. Morgan, RBC Capital Markets and Allen & Company are the joint bookrunners on the deal.
Tufin Software Technologies (TUFN), which provides enterprise software for managing network security policies, plans to raise $100 million by offering 7.7 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, it would command a market value of $498 million. Tufin Software Technologies, which was founded in 2005, booked $85 million in sales over the last 12 months. The Ramat Gan, Israel-based company plans to list on the NYSE under the symbol TUFN. J.P. Morgan, Barclays and Jefferies are the joint bookrunners on the deal.
Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.
Last week, there were 5 IPO pricings. Silk Road Medical (SILK), which sells medical devices to treat carotid artery disease, was the best of the group, ending the week up 79% from its IPO price.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/4/19, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 had a gain of 15.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (VICI). The Renaissance International IPO Index was up 11.1% year-to-date, while the ACWX was up 12.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
The article US IPO Week Ahead: 2019 tech deals double in 3-IPO week led by PagerDuty 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.
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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