Three IPOs plan to raise a combined $1.8 billion in the week ahead.
Peloton Interactive (PTON) is the largest, targeting $1.1 billion at a market cap of $9.0 billion. Known for its premium connected exercise bikes, Peloton grew sales by 110% to $915 million in FY19. Unlike other fast-growing consumer products IPOs in past years (GPRO, FIT), Peloton has successfully established a subscription base (20% of revenue). However, it is still highly unprofitable (-8% EBITDA margin; -21% FCF). Backed by Tiger Global and True Ventures, it was last valued privately at $14.44 per share in August 2018.
Endeavor Group (EDR) plans to raise $600 million at a market cap of $7.7 billion ($12.1 billion enterprise value). The large Hollywood talent agency has unique assets and partnerships, including a majority stake in the popular Ultimate Fighting Championship. That said, the business is highly levered with many moving parts, and a trailing EBIT margin of just 0.9%.
Fintech Oportun Financial (OPRT) is raising $100 million at a market cap of $454 million. Backed by IVP, Greylock and Madrone, insiders are floating 25% of the deal. Formerly Progreso Financiero, it originally focused on the underserved, underbanked US Hispanic community, but has since targeted the broader "credit invisible" and mis-scored population. Primarily in California and Texas, Oportun’s APRs range from 20% to 67%. During the 1H19, net revenue increased 21% to $252 million, though net income fell by more than 60% to $28 million.
|U.S. IPO Calendar|
|Oportun Financial (OPRT)
San Carlos, CA
|$15 - $17
|Provides loans to low and moderate income consumers with limited credit history.|
New York, NY
|$26 - $29
|Sells connected home fitness equipment and monthly class subscriptions.|
|Endeavor Group (EDR)
Beverly Hills, CA
|$30 - $32
|Global entertainment production company and talent agency.|
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The following IPOs are expected to price this week:
Endeavor Group Holdings (EDR), a global entertainment production company and talent agency, plans to raise $600 million by offering 19.4 million shares at a price range of $30.00 to $32.00. At the midpoint of the proposed range, Endeavor Group would command a market value of $7.7 billion. Endeavor, which traces its roots to 1898, booked $4.2 billion in sales over the last 12 months. The Beverly Hills, CA-based company plans to list on the NYSE under the symbol EDR. Goldman Sachs, KKR, J.P. Morgan, Morgan Stanley, and Deutsche Bank are the lead joint bookrunners on the deal.
Oportun Financial (OPRT), which provides loans to low and moderate income consumers with limited credit history, plans to raise $100 million by offering 6.3 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, Oportun Financial would command a market value of $454 million. Oportun Financial, which was founded in 2005, booked $494 million in sales over the last 12 months. The San Carlos, CA-based company plans to list on the Nasdaq under the symbol OPRT. Barclays, J.P. Morgan, Jefferies and Keefe Bruyette Woods are the joint bookrunners on the deal.
Peloton Interactive (PTON), which sells connected home fitness equipment and monthly class subscriptions, plans to raise $1.1 billion by offering 40.0 million shares at a price range of $26.00 to $29.00. At the midpoint of the proposed range, Peloton would command a market value of $9.0 billion. Peloton , which was founded in 2012, booked $915 million in sales over the last 12 months. The New York, NY-based company plans to list on the Nasdaq under the symbol PTON. Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Barclays, UBS, and Cowen are the joint bookrunners on the deal. Shareholder TCV intends to invest $50 million in a concurrent private placement.
Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.