January's record-breaking activity is spilling over into February. Ten companies are targeting a combined $1.8 billion. Headlined by three energy companies, deals include an Argentine ag-tech, a Turkish Burger King franchisee, a Chinese wearables manufacturer, an asset manager, a Botox biotech, a medical device company and the year's first US tech company.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Bioceres (BIOX) Rosario, Argentina |
$130M $497M |
$10 - $12 11,818,182 |
Jefferies Piper Jaffray |
| Sells biologic agrochemicals and develops seed productivity traits in Argentina. | |||
| TFI TAB Food (TFIG) Istanbul, Turkey |
$220M $1,187M |
$9 - $11 22,000,000 |
Morgan Stanley Credit Suisse |
| Exclusive franchisee for Burger King and other QSRs in Turkey and China. | |||
| Cactus (WHD) Houston, TX |
$375M $1,311M |
$16 - $19 21,428,572 |
Citi Credit Suisse |
| Manufactures wellheads and pressure control equipment for US E&Ps. | |||
| Evolus (EOLS) Irvine, CA |
$65M $313M |
$12 - $14 5,000,000 |
Cantor Fitz. Mizuho |
| Preparing to launch a biosimilar version of Botox. | |||
| Huami (HMI) Hefei, China |
$110M $662M |
$10 - $12 10,000,000 |
Credit Suisse Citi |
| Chinese manufacturer of wearable devices partnered with Xiaomi. | |||
| Quintana (QES) Houston, TX |
$125M $435M |
$12 - $15 9,259,259 |
BofA ML Simmons |
| Provides diversified well services to onshore oil and gas E&Ps. | |||
| Victory Capital (VCTR) Brooklyn, OH |
$211M $1,399M |
$17 - $19 11,700,000 |
JP Morgan BofA ML |
| Multi-boutique asset management firm with $62 billion in AUM. | |||
| Cardlytics (CDLX) Atlanta, GA |
$76M $288M |
$13 - $15 5,400,000 |
BofA ML JP Morgan |
| Provides a banking-based advertising channel to consumer products marketers. | |||
| IPSCO Tubulars (IPSC) Houston, TX |
$500M $1,307M |
$20 - $23 23,255,813 |
BofA ML Morgan Stanley |
| US steel pipe supplier for E&Ps being spun out of Russia's TMK. | |||
| Motus GI (MOTS) Tirat Carmel, Israel |
$26M $102M |
$5 - $7 4,250,000 |
Piper Jaffray Oppenheimer |
| Developing a medical device to assist with intraprocedural colonoscopy cleaning. | |||
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The rebound in oil prices has pumped up the energy sector for IPOs. While they operate in a highly cyclical and competitive industry, investors appear bullish with the year's three offerings each up over 10%. Fracking equipment company Cactus (WHD) is targeting $375 million at a $1.3 billion valuation. The PE-backed company has grown its wellhead market share to 27% and plans to pay down debt on the offering.
Diversified well services company Quintana Energy Services (QES) aims to raise $125 million at a $435 million market value. In the 9mo17, the company saw revenue grow 73% to $237 million and adjusted EBITDA turn positive (7% margin).
IPSCO Tubulars (IPSC), the US subsidiary of Russia’s TMK, provides steel pipes to E&Ps. IPSCO saw revenue pop 125% to $730 million in the 9mo17 and net income turn positive to $23 million from a loss of $150 million. The company aims to raise $500 million at a $1.3 billion market cap.
Argentine ag-tech Bioceres (BIOX) is targeting $130 million at a $497 million market value. Originally formed to focus on researching crop traits, the company acquired an established agro-chemical business in 2016, boosting pro forma revenue to over $120 million in its most recent fiscal year. Bioceres has developed a robust product pipeline, partnering with major players such as Dow AgroSciences, Momentive and Syngenta, and expects to bring its drought-resistant soybean and wheat seeds to market in the next few years.
TFI TAB Gida (TFIG), the master franchisee of Burger King in Turkey and China, aims to raise $220 million at a $1.2 billion market value. From 2014 to 2016, the company has opened an average of 200 net new stores per year with 12.5% average same store sales growth. It now has over 1,800 restaurants system-wide and plans to open 75 new restaurants in Turkey and 225 in China in each of 2018 and 2019.
Chinese wearables manufacturer Huami (HMI) is targeting $110 million at a $662 million market value. While Huami is China's leading supplier of fitness bands, the company relies heavily on its relationship with Xiaomi, a financial backer and its top customer (>80% of 9mo17 sales). Huami is the first Chinese company of 2018 to list on a US exchange, and could mark the beginning of an active year. This week, a Nasdaq executive said the exchange expects China listings to jump 25-30% in 2018.
Victory Capital Holdings (VCTR), a multi-boutique asset management firm, is targeting a $211 million IPO at a $1.4 billion valuation. With nine independently managed franchises and ETF platform VictoryShares, Victory Capital plans to grow through select acquisitions and investments in technology to expand its platform.
Cardlytics (CDLX) aims to raise $76 million at a $288 million market cap. The company has developed a compelling targeted marketing platform using data on consumer transactions from over 2,000 financial institutions. While it is the leader in banking-based marketing, it relies heavily on data from Bank of America, which was 51% of MAU and commands a 63% revenue split. We note that the company's post-IPO funding will be equal to its market cap.
Evolus (EOLS), which is being spun out of parent Alphaeon, is developing a biosimilar for Botox. To date, the company has successfully completed Phase III trials and could see an approval in mid-to-late 2018. Evolus is expected to be the seventh biotech IPO of 2018, and earlier this week a Nasdaq executive suggested that that number could soon double based on listing applications.
Motus GI Holdings (MOTS) is developing a medical device for intraprocedural colonoscopy cleaning. The company aims to raise $26 million at a $102 million market value, and plans to initiate a clinical trial in 2018 for approval in 2019.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. After the week's market sell-off, the Renaissance IPO Index has returned -0.8% year-to-date and the S&P 500 is up 3.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snap (SNAP) and US Foods (USFD). The Renaissance International IPO Index is up 5.1% year-to-date, while the ACWX is up 3.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.
