Four IPOs are expected to raise $2 billion before the Fourth of July, led by commercial data analytics provider Dun & Bradstreet (DNB).
Dun & Bradstreet (DNB) plans to raise $1.3 billion at a market cap of $8 billion. The company was taken private for $6.9 billion including debt in February 2019 by an investor consortium led by Cannae Holdings, Black Knight, and CC Capital with the goal of remedying "operational and execution issues" Dun & Bradstreet serves many of the largest enterprises in the world, including roughly 90% of the Fortune 500 and 60% of the Global 500 in 2019. While revenue growth accelerated to 17% in the 1Q20, quarterly growth has been lumpy.
Insurtech startup Lemonade (LMND) plans to raise $270 million at a $1.4 billion market cap. The Millennial-focused company provides an online self-serve renters and homeowners insurance platform and has captured a 7% market share in New York in three and a half years. Fast-growing and highly unprofitable, Lemonade is coming to market at a steep discount to its last private round.
DoubleDown Interactive (DDI), a leading developer and publisher of social casino mobile games, plans to raise $198 million at a $896 million market cap. Acquired by Korea's DoubleU Games in 2017, Seattle-based DoubleDown has a strong track record of profitability and industry-leading monetization. However, its focus on profitability weighed on revenue growth in 2019, and it relies on a small percentage of players for all revenue.
Benefits management platform Accolade (ACCD) plans to raise $175 million at a market cap of $1.0 billion. The company provides its healthcare benefits management platform primarily for self-insured employers, targeting an estimated $11+ billion market opportunity. The company has demonstrated strong growth and improving margins, though its customer acquisitions have slowed in the year-to-date period.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| DoubleDown Interactive (DDI) Seoul, South Korea |
$198M $896M |
$17 - $19 11,000,000 |
JP Morgan BofA |
| Leading developer and publisher of mobile- and web-based social casino games. | |||
| Dun & Bradstreet (DNB) Short Hills, NJ |
$1,315M $8,011M |
$19 - $21 65,750,000 |
Goldman BofA |
| Provides commercial data analytics services. | |||
| Accolade (ACCD) Plymouth Meeting, PA |
$175M $1,044M |
$19 - $21 8,750,000 |
Goldman Morgan Stanley |
| Provides a healthcare benefits management platform for self-insured employers. | |||
| Lemonade (LMND) New York, NY |
$270M $1,389M |
$23 - $26 11,000,000 |
Goldman Morgan Stanley |
| Provides online self-serve renters and homeowners insurance. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/25/20, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 was down 4.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 18.3% year-to-date, while the ACWX was down 10.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
