Updated Monday, 10/19.
Five IPOs and two SPACs are expected to raise $2.1 billion in the week ahead, led by leading cybersecurity brand McAfee (MCFE).
Taken private by Intel in 2011, McAfee (MCFE) plans to raise $759 million at a $9.6 billion market cap in its return to the public market. McAfee provides integrated security solutions against cyberattacks to consumers, enterprises, and governments. Its consumer-focused products protected over 600 million devices and its enterprise customers included 86% of the Fortune 100. The company is profitable and plans to offer a 1.7% yield at the midpoint. Despite using the IPO proceeds to pay down debt, McAfee will be highly leveraged post-offering.
IT infrastructure platform Datto (MSP) plans to raise $561 million at a $4.2 billion market cap. The Vista-backed company provides a family of integrated tools that enable managed service providers (MSPs) to provide security and continuity services to their SMB customers. Although the company is profitable and generated positive free cash flow in the 1H20, revenue growth has been weighed down by declining device revenue.
Mortgage servicer and lender Guild Holdings (GHLD) plans to raise $153 million at a $1.1 billion market cap. The company provides loan sourcing and mortgage services, and it is among the longest operating seller-servicers in the US. The company is profitable, and revenue growth accelerated in the 1H20.
UK-based research tool provider Abcam (ABCM) plans to raise $148 million at a $3.7 billion market cap. The company identifies, develops, and distributes reagents and tools for life science research, and its customers are primarily scientists and academic and commercial researchers. Profitable but slow-growing, Abcam operates across 15 locations around the world.
Preclinical oncology biotech Foghorn Therapeutics (FHTX) plans to raise $120 million at a $628 million market cap. Foghorn's most advanced candidates are being developed for hematologic cancers and solid tumors, and the company plans to file INDs for them in the 4Q20 and 1H21.
Cormorant Asset Management’s SPAC Helix Acquisition (HLXA) plans to raise $100 million to acquire business in the healthcare industry, and Supernova Partners Acquisition (SPNV.U), a blank check company formed by the co-founder of Zillow and other entrepreneur and investment veterans, plans to raise $300 million.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Helix Acquisition (HLXA) Boston, MA |
$100M $129M |
$10 10,000,000 |
Jefferies |
| Blank check company formed by Cormorant Asset Management targeting healthcare. | |||
| Datto (MSP) Norwalk, CT |
$561M $4,182M |
$24 - $27 22,000,000 |
Morgan Stanley BofA |
| Sells a hybrid IT infrastructure platform to managed service providers. | |||
| Supernova Partners Acq. (SPNV.U) Washington, DC |
$300M $375M |
$10 30,000,000 |
JP Morgan Jefferies |
| Blank check company formed by the co-founder of Zillow and other entrepreneur and investment veterans. | |||
| Abcam (ABCM) Cambridge, United Kingdom |
$148M $3,730M |
$16.52 8,945,218 |
Morgan Stanley BofA |
| Provides biological reagents and tools for research, drug discovery, and diagnostics. | |||
| Guild Holdings (GHLD) San Diego, CA |
$153M $1,102M |
$17 - $19 8,500,000 |
Wells Fargo BofA |
| Provides personalized mortgage services and loan origination. | |||
| McAfee (MCFE) San Jose, CA |
$759M $9,621M |
$19 - $22 37,000,000 |
Morgan Stanley Goldman |
| Leading provider of antivirus and endpoint security software. | |||
| Foghorn Therapeutics (FHTX) Cambridge, MA |
$120M $628M |
$15 - $17 7,500,000 |
Goldman Morgan Stanley |
| Preclinical biotech developing gene therapies for hematologic cancers and solid tumors. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Street research is expected for 11 companies and lock-up periods will be expiring for two companies in the week ahead. For access to Street research and lock-up expiration dates, sign up for a free trial of IPO Pro.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/15/20, the Renaissance IPO Index was up 81.6% year-to-date, while the S&P 500 was up 7.8%. 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 37.8% year-to-date, while the ACWX was down 3.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianpin and SoftBank.
