The summer IPO market is wrapping up. While we could see a few more launches, this week's five deals should be some of the last IPOs before the August break.
A Chinese investment bank and an Israeli medical device maker are the two most notable IPOs. The other three include a micro-cap biotech and two holdovers from last week, a Chinese AR play and a small battery maker.
Trading on Monday, Hong Kong investment bank AMTD International (HKIB) is the week's first and largest IPO, with a valuation of almost $2 billion. With heavy deal flow out of China, the IB segment saw explosive growth in the first quarter, while asset management fees diversify its revenue stream. That said, IB fees and portfolio returns can drop when the music stops, while insiders will retain supervoting rights.
Israel-based InMode (INMD) plans to raise $75 million at a market cap of $611 million. While sales have moderated in recent quarters, the company is still experiencing fast growth (+46% in the MRQ) with positive cash flow (29% margin). Strong trading from recent medical device IPOs (e.g. SWAV, SILK) could also be a tailwind.
In addition, early-stage cirrhosis biotech BioVie (BIVI) plans to uplist from the OTC to the Nasdaq in a $15 million offering.
China-based holographic augmented reality (AR) company WiMi Hologram Cloud (WIMI) and lithium-ion battery maker Flux Power (FLUX) were both originally scheduled for last week, but now plan to price in the week ahead.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| AMTD International (HKIB) Hong Kong, China |
$172M $1,912M |
$8.10 - $8.48 20,759,700 |
AMTD Global Loop Capital Markets |
| Hong Kong-based asset manager and investment bank. | |||
| BioVie (BIVI) Los Angeles, CA |
$15M $64M |
$11.88 1,262,626 |
ThinkEquity |
| Early stage biotech developing therapies for cirrhosis. | |||
| InMode (INMD) Yokneam, Israel |
$75M $611M |
$14 - $16 5,000,000 |
Barclays UBS |
| Israeli maker of minimally-invasive medical aesthetic systems. | |||
| Flux Power (FLUX) Vista, CA |
$13M $59M |
$9 1,449,275 |
Roth Cap. Maxim |
| Manufactures and sells lithium-ion batteries and storage solutions. | |||
| WiMi Hologram (WIMI) Beijing, China |
$34M $496M |
$7.50 - $9.50 4,000,000 |
Benchmark Maxim |
| Chinese provider of ad services and software used in holographic augmented reality. | |||
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The following IPOs are expected to trade this week:
AMTD International (HKIB), a Hong Kong-based asset manager and investment bank, plans to raise $172 million by offering 20.8 million ADSs at a price range of $8.10 to $8.48. At the midpoint of the proposed range, AMTD International would command a market value of $1.9 billion. AMTD International, which was founded in 2003, booked $155 million in revenue over the last 12 months. The company plans to list on the NYSE under the symbol HKIB. AMTD Global Markets, Loop Capital Markets, MasterLink, Tiger Brokers, ViewTrade, and Boustead Securities are the joint bookrunners on the deal.
BioVie (BIVI), an early stage biotech developing therapies for cirrhosis, plans to raise $15 million by offering 1.3 million shares based on its converted OTC-listed price of $11.88. At that price, BioVie would command a market value of $64 million. Founded in 2013, the Los Angeles, CA-based company plans to list on the Nasdaq under the symbol BIVI. ThinkEquity is the lead bookrunner on the deal.
InMode (INMD), an Israeli maker of minimally-invasive medical aesthetic systems, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, InMode would command a market value of $611 million. InMode, which was founded in 2008, booked $110 million in sales over the last 12 months. The Yokneam, Israel-based company plans to list on the Nasdaq under the symbol INMD. Barclays and UBS Investment Bank are the joint bookrunners on the deal.
WiMi Hologram Cloud (WIMI), a Chinese provider of ad services and software used in holographic augmented reality, plans to raise $34 million by offering 4.0 million ADSs at a price range of $7.50 to $9.50. At the midpoint of the proposed range, WiMi Hologram would command a market value of $496 million. WiMi Hologram, which was founded in 2015, booked $37 million in sales over the last 12 months. The Beijing, China-based company plans to list on the Nasdaq under the symbol WIMI. The Benchmark Company, Maxim Group LLC, China Merchants Securities, AMTD Global Markets, BOCI, and three others are the joint bookrunners on the deal.
Flux Power Holdings (FLUX), which manufactures and sells lithium-ion batteries and storage solutions, plans to raise $13 million by offering 1.4 million shares at a price of $9.00. At that price, it would command a market value of $59 million. Flux Power, which was founded in 1998, booked $7 million in sales over the last 12 months. The Vista, CA-based company plans to list on the Nasdaq under the symbol FLUX. Roth Capital and Maxim Group LLC 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.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/1/19, the Renaissance IPO Index was up 38.0% year-to-date, while the S&P 500 had a gain of 19.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Elanco (ELAN). The Renaissance International IPO Index was up 11.3% year-to-date, while the ACWX was up 12.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
