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Uber leads wave of 14 new filings; here are the upcoming IPOs

April 16, 2019

Last week, 12 companies submitted new IPO filings, the most active week since May 2018. Two more filings hit on Monday. Monthly filings currently stands at 20, the same as the full month of April 2018. Excluding the eight deals on the IPO calendar for this week, the visible IPO pipeline contains 80 names looking to raise roughly $27 billion.

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Launch Schedule
The week ahead has eight deals raising $2.5 billion, before the IPO market takes a break during the week of April 22. However, several deals can launch next Monday and price the week of April 29, including social gaming spinoff SciPlay (SCPL), fast growing device maker TransMedics (TMDX), and neurological biotech Trevi Therapeutics (TMDX). Plant-based burger maker Beyond Meat (BYND)) also looks ready to launch its roadshow, along with a few potential billion-dollar IPOs, such as Chinese e-commerce site Yunji (YJ), radio station giant iHeartMedia (IHRT.RC), and revenue cycle software provider Change Healthcare (CHNG). Most of the recent surge of filings hit this past Friday, meaning they are able to launch roadshows as early as Monday, April 29, and price in mid-May. Given the number of filings, we expect May activity to surpass last year's 21 offerings, becoming the most active May since 2013 (30).

The 12 IPO filings
Uber (UBER) led the pack, filing for an IPO that we anticipate could raise up to $10 billion, the largest US IPO since 2014. The world's #1 ridesharing company has a dominant position in its global markets, and tripled its sales over the past two years to $11.3 billion. However, it had a -$3 billion operating loss in 2018, while competition has weighed on gross margins. Close comp Lyft (LYFT) finished Monday at $56.11, a new low and 22% below its offer price.

Two employee-owned Industrials companies filed, a government contractor and a vehicle components maker. The week's second-largest filer, Parsons (PSN), booked $3.6 billion in revenue with a 6% adj. EBITDA margin. The company provides technology systems services to the US government/DoD (54% of adj. EBITDA) and infrastructure engineering and support services to primarily government customers (46%). Wisconsin-based Mayville Engineering (MEC) works with various commercial and industrial vehicle OEMs to fabricate components. It recorded $524 million in LTM sales, with an 11% adj. EBITDA margin.

One high-growth Chinese company filed, So-Young International (SY), providing an online platform for users to compare and purchase plastic surgery services. Backed by Matrix Partners China, So-Young grew revenue by 138% to $92 million in 2018, with a 12% adj. EBITDA margin.

Five biotechs filed on Friday, all aiming to raise $86 million. These included Flagship-backed liver disease biotech Axcella Health (AXLA), RTW/Novo-backed late stage heart rate biotech Milestone Pharmaceuticals (MIST), Pfizer-backed novel Alzheimer's drug developer Cortexyme (CRTX), Orbimed-backed immuno-oncology biotech NextCure (NXTC), and diabetic cardiomyopathy biotech Applied Therapeutics (APLT).

Two regional banks filed, one in West Texas and one in Louisiana. Lubbock, TX-based South Plains Financial (SPFI), operating as City Bank, had $21 million in 2018 net income with $2.7 billion in assets at year-end. Alexandria, LA-based Red River Bancshares (RRBI) booked $23 million in net income and ended with $1.9 billion of assets.

One small wireless radio services provider, Ondas Holdings (ONDS), filed for a NYSE uplisting; in 2018, the company booked $0.2 million of revenue with a net loss of -$12 million.

In addition to the 12 new filings, two blank check companies also joined the pipeline, including a $350 million offering from Diamond Eagle Acquisition (DMDEU.RC), Jeff Sagansky's fifth SPAC.

Two filings on Monday
On Monday, small software company, ConversionPoint (CPTI) filed to raise $40 million, and small mobile phone hardware maker Sonim Technologies (SONM) filed to raise $58 million.

12 IPOs and 2 SPACs File During the Week of April 8th, 2019
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Applied Therapeutics (APLT) $86M Health Care Citi
Phase 2 biotech developing therapies for diabetic cardiomyopathy.
Axcella Health (AXLA) $86M Health Care Goldman
Developing therapeutics and dietary products for amino acid dysregulation.
Cortexyme (CRTX) $86M Health Care BofA ML
Phase 1b biotech developing therapies for Alzheimer’s disease.
Mayville Engineering (MEC) $100M Industrials Baird
Provides end-to-end manufacturing services to OEM customers.
Milestone Pharmaceuticals (MIST) $86M Health Care Jefferies
Phase 3 biotech developing therapies for heart rate conditions.
NextCure (NXTC) $86M Health Care Morgan Stanley
Clinical-stage biotech developing cancer immunotherapies.
Ondas Holdings (ONDS) $46M Communication Services
Provides a wireless radio system for broadband networks.
Parsons (PSN) $500M Industrials Goldman
Provides technology-driven defense, intelligence, and infrastructure solutions.
South Plains Financial (SPFI) $50M Financials KBW
West Texas commercial bank with 21 full-service locations.
AGBA Acquisition (AGBAU) $40M SPAC Maxim
Blank check company targeting the services sector in China.
Diamond Eagle Acquisition (DMDEU.RC) $350M SPAC
Fifth blank check company formed by entertainment veteran Jeff Sagansky.
Uber (UBER) $10,000M Technology Morgan Stanley
Operates the world's largest on-demand ridesharing network.
Red River Bancshares (RRBI) $30M Financials FIG Partners
Louisiana commercial bank with 24 locations across the state.
So-Young International (SY) $150M Technology Deutsche Bank
China-based online marketplace for plastic surgery services.

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