No companies went public in the US this past week, but new IPO filings continued to pour in ahead of the September pick-up. The two software providers could fetch billion-plus valuations, Datadog (DDOG) and Ping Identity (PING).
LBO'd by Vista Equity Partners in 2016, identity access management platform Ping Identity is highly profitable with a 22% EBITDA margin, and grew sales by about 14% in the 1H19 to $113 million. Backed by Index Ventures, Datadog grew sales by 79% in the 1H19 to $153 million, with a near-breakeven EBITDA of -2%.
Three health care filers joined the IPO pipeline, including 10x Genomics (TXG), a life sciences technology firm backed by Foresite Capital and Venrock and valued at more than $1 billion privately. Two biotechs also filed, cancer-focused antibody developer IGM Biosciences (IGMS) and inhaled therapy developer TFF Pharmaceuticals (TFFP).
Additionally, two SPACs filed for IPOs, Experience Investment Corp (EXPCU) and New Providence Acquisition (NPAU).
| 7 Filings During the Week of August 19th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Datadog (DDOG) | $100M | Technology | Morgan Stanley |
| Provides a monitoring and analytics platform for companies' technology stack. | |||
| Experience Investment (EXPCU) | $250M | SPAC | Deutsche Bank |
| Leisure-focused blank check company led by a team from KSL Capital Partners. | |||
| New Providence Acq. (NPAU) | $200M | SPAC | BTIG |
| Blank check company targeting the consumer industry. | |||
| Ping Identity (PING) | $100M | Technology | Goldman |
| Provides an enterprise security platform focused on identity access management. | |||
| TFF Pharmaceuticals (TFFP) | $22M | Health Care | National Sec. |
| Early-stage biotech developing dry-powder therapies for lung diseases. | |||
| 10x Genomics (TXG) | $100M | Health Care | JP Morgan |
| Makes instruments and other technology for analyzing biological information. | |||
| IGM Biosciences (IGMS) | $100M | Health Care | Jefferies |
| Early-stage biotech developing antibody therapies for cancer. | |||
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In other IPO news, VMware announced that it would acquire two companies that IPO'd in 2018, cybersecurity play Carbon Black (CBLK) and software development platform Pivotal Software (PVTL). Recent IPO Fastly (FSLY) soared more than 50% this past week to a new all-time high, a strong sign for close peer and upcoming IPO Cloudflare (NET).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/22/19, the Renaissance IPO Index was up 33.7% year-to-date, while the S&P 500 had a gain of 16.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Spotify (SPOT) and Roku (ROKU). The Renaissance International IPO Index was up 10.8% year-to-date, while the ACWX was up 5.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank Corp.
