The IPO market is expected to remain active in the week ahead with nine IPOs scheduled to raise $2.7 billion.
Canadian digital service provider TELUS International (TIXT) plans to raise $800 million at a $6.4 billion market cap. The company provides customer service outsourcing and end-to-end customer experience and digital technology solutions and services. Fast growing and profitable, TELUS grew revenue 53% in the 9mo20. The company is planning a dual listing on the NYSE and TSX.
German chemical group Atotech (ATC) plans to raise $700 million at a $3.8 billion market cap. Atotech is a specialty chemical producer offering electroplating solutions, with a leading share of the electronics and general metal finishing markets. The company has resilient margins and strong cash flow generation, though it will be leveraged post-IPO despite using IPO proceeds to pay down debt.
Virtual communication platform ON24 (ONTF) plans to raise $409 million at a $2.6 billion market cap. ON24 is a B2B and B2C platform that enables businesses to create webinars, virtual events, and content experiences for customer and business engagement. The company turned profitable in the 9mo20, and growth accelerated to 59%.
Cell therapy biotech Sana Biotechnology (SANA) plans to raise $323 million at a $4.0 billion market cap. This preclinical biotech is developing in vivo and ex vivo cell engineering platforms to treat a range of diseases including cancer, diabetes, and CNS disorders. The company’s candidates are all in preclinical development, with IND submissions expected in 2022 and 2023.
Following its IPO attempt in 2015, loanDepot (LDI) plans to raise $300 million at a $6.5 billion market cap. This nonbank lender provides loan origination and servicing with a focus on mortgage and unsecured personal loans. Fast growing and profitable, the company saw revenue triple and gross margin expand 23 percentage points in the 9mo20.
Autoimmune biotech Landos Biopharma (LABP) plans to raise $100 million at a $650 million market cap. This Phase 2 biotech uses its AI-driven platform, LANCE, to discover and develop oral small molecule therapeutics for the treatment of autoimmune diseases. The company’s lead candidate is currently in a Phase 2 trial for mild to moderate ulcerative colitis.
Holdover urban-gro (UGRO) plans to raise $45 million at a $97 million market cap. The company provides engineering and design services for the integration of environmental equipment systems in indoor facilities. The company is unprofitable and saw revenue decline in the 9mo20.
Chinese fertilizer producer Muliang Viagoo Technology (MULG) plans to raise $40 million at a $194 million market cap. This company manufactures and sells organic fertilizer under the brand names “Zongbao,” “Fukang,” and “Muliang”. While the company is profitable, it saw a 26% decrease in revenue in the 9mo20.
Danish biotech Evaxion Biotech (EVAX) plans to raise $30 million at a $233 million market cap. This Phase 1/2 biotech uses their proprietary AI-driven platforms to develop novel immunotherapies for the treatment of cancers, bacterial diseases, and viral infections. Its lead candidates, EVX-01 and EVX-02, are currently in Phase 1/2a trials for various cancer indications.
|U.S. IPO Calendar|
San Francisco, CA
|$45 - $50
|Provides a B2B customer engagement platform supporting webinars and analytics.|
|TELUS International (TIXT)
|$23 - $25
|Provides customer service outsourcing and digital IT services.|
|$19 - $22
|Carlyle-backed specialty chemicals company carved out of Total.|
|Evaxion Biotech (EVAX)
|$10 - $12
|Danish Phase 1/2 biotech using AI to develop immuno-oncology therapies.|
|Landos Biopharma (LABP)
|$15 - $17
|Phase 2 biotech developing oral small molecule therapies for autoimmune diseases.|
Foothill Ranch, CA
|$19 - $21
|Nonbank lender focused on mortgages and unsecured personal loans.|
|Muliang Viagoo (MULG)
|Chinese manufacturer and distributor of organic fertilizer and agricultural products.|
|Sana Biotechnology (SANA)
|$20 - $23
|Preclinical biotech developing engineered cell therapies for multiple indications.|
|Provides equipment and services for the commercial indoor horticulture market.|
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Street research is expected for Cullinan Management (CGEM) and Gracell Biotechnologies (GRCL) on Tuesday, 2/2.
Lock-up periods will be expiring for seven companies. On Monday, 2/1: Rackspace Technology (RXT). On Tuesday, 2/1: Acutus Medical (AFIB), Oak Street Health (OSH), and Rocket Companies (RKT). On Wednesday, 2/3: Checkmate Pharmaceuticals (CMPI), Freeline Therapeutics (FRLN), and IBEX (IBEX).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/29/21, the Renaissance IPO Index was up 6.3% year-to-date, while the S&P 500 was up 0.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video (ZM). The Renaissance International IPO Index was up 3.1% year-to-date, while the ACWX was up 2.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Feihe.