After more than 30 years, iconic jeans brand Levi Strauss & Co. (LEVI) returned the public market this week, along with UP Fintech Holding (TIGR) and another SPAC, Insurance Acquisition (ILSUU).
Photo sharing platform Pinterest (PINS) filed for an IPO that we estimate could raise $1 billion. The "decacorn" booked $756 million in revenue for 2018, up 60% from 2017. The company last raised funding in 2017 at a $12.3 billion valuation, and is reportedly targeting a $12 billion market value on its IPO.
Cloud-based video and web conferencing platform Zoom Video Communications (ZM), Chinese e-commerce site Yunji (YJ), vaporization products distributor Greenlane Holdings (GNLN), mineral royalty company Brigham Minerals (MNRL), and two biotechs, Hookipa Pharma (HOOK) and Turning Point Therapeutics (TPTX), also submitted initial filings with the SEC this week.
Alight (ALIT), the Blackstone-backed provider of outsourced cloud-based HR services, was set to raise $758 million at a $4.8 billion market cap this week but postponed its IPO. The company did not disclose a reason for postponing the deal. BJ Services (BJS), a leading provider of hydraulic fracturing and pressure pumping services withdrew its IPO this week. The company originally filed in 2017 for an estimated $300 million, and had not updated its prospectus since.
Rideshare giant Lyft (LYFT), cancer biotech Precision BioSciences (DTIL), and Ruhnn Holding (RUHN), an e-commerce platform used by Chinese internet celebrities to sell fashion items, all launched this week.
| 3 IPOs During the Week of March 18th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 03/22 |
| UP Fintech Holding (TIGR) | $104M | $1,168M | 33% | +37% | +35% |
| Online brokerage focused on global investors in China. | |||||
| Levi Strauss (LEVI) | $623M | $6,891M | 13% | +32% | +30% |
| World's largest denim apparel brand. | |||||
| Insurance Acquisition (ILSUU) | $131M | $180M | 0% | n/a | +0% |
| Blank check company backed by Cohen & Company and targeting the insurance industry. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Levi's, the world's largest denim apparel brand, raised $623 million at a market cap of $6.9 billion. It priced at $17 dollars, above the range of $14-$16. The company traded up 32% on its first day, and finished the week up 30% from its IPO, supported by great brand recognition and accelerated growth of 14% in 2018.
Online brokerage UP Fintech Holding raised $104 million at a market cap of $1.2 billion. The company traded up 37% on its first day, and finished the week up 35% from its IPO. Its first day return topped that of close peer Futu Holdings (FHL), which traded up 28% on its first day but has since climbed to 43% above its IPO.
The SPAC trend continued with Insurance Acquisition. The insurance blank check company backed by Cohen & company raised $131 million at a market cap $180 million.
| 7 Filings During the Week of March 18th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Hookipa Pharma (HOOK) | $86M | Health Care | BofA ML |
| Phase 2 biotech developing T cell immunotherapies for various cancers. | |||
| Pinterest (PINS) | $1,000M | Technology | Goldman |
| Operates a pinboard-style social photo sharing platform. | |||
| Zoom (ZM) | $300M | Technology | Morgan Stanley |
| Provides a cloud-based video and web conferencing platform. | |||
| Turning Point Tx (TPTX) | $100M | Health Care | Goldman |
| Early stage biotech developing tyrosine kinase inhibitors for cancer treatment. | |||
| Yunji (YJ) | $1,000M | Technology | Morgan Stanley |
| Chinese e-commerce site that uses a social platform to promote its products. | |||
| Greenlane Holdings (GNLN) | $92M | Consumer Discretionary | Cowen |
| National distributor of vaporization products and accessories. | |||
| Brigham Minerals (MNRL) | $100M | Energy | Credit Suisse |
| Owns oil and gas mineral royalty interests underlying 68,800 acres across the US. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/21/19, the Renaissance IPO Index was up 34.4% year-to-date, while the S&P 500 had a gain of 13.88%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (VICI) and Spotify (SPOT). The Renaissance International IPO Index was up 9.4% year-to-date, while the ACWX was up 11.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Tower.
