Four IPOs and one SPAC plan to raise $663 million in the week ahead, led by Jamf Holding (JAMF).

The IPO market is on a hot streak, and the IPO pipeline is filling up as filing activity remains high. Several companies could join the IPO calendar in the coming week, including leading mortgage lender Rocket Companies (RKT), tax software provider Vertex (VERX), Brazilian digital education spin-off Vasta Platform (VSTP), and a handful of biotechs (AlloVir (ALVR), Annexon Biosciences (ANNX), Nurix Therapeutics (NRIX)). Bill Ackman’s $4 billion SPAC Pershing Square Tontine Holdings (PSTHU) could also launch.

Acquired by Vista Equity Partners in 2017, Minneapolis-based Jamf plans to raise $288 million at a $2.8 billion market cap. Tiger Global and Dragoneer have indicated on $100 million of the offering. The company’s cloud-based software helps enterprises deploy and manage Apple (NASDAQ:AAPL) devices. Coming to market at a discount to its SaaS peers, Jamf has achieved strong growth (+37% in MRQ) and a track record of positive EBITDA margins (9% in MRQ), though the space is becoming more competitive, including from Apple itself.

Environmental services firm Montrose Environmental Group (MEG) plans to raise $160 million at a $374 million market cap and $683 million enterprise value. The company has made 53 acquisitions since its 2012 inception, most recently Arkansas-based CTEH in April 2020 for $198 million. Montrose believes that its clean air and water services will see rising demand as more companies adopt Corporate Social Responsibility and ESG initiatives. Though it is profitable on EBITDA, it has a history of operating losses and will carry over $300 million in net debt post-IPO.

READ ALSO  Turkey vows legal action over Charlie Hebdo cartoon

Chinese micro-cap Skillful Craftsman Education Technology (NGJY) plans to raise $15 million at a $62 million market cap. The company currently provides over 400 vocational training courses in China, and its online education platforms had 60 million registered members and 2.6 million fee-paying members as of September 30, 2019.

Holdover ACell (NASDAQ:ACLL), which makes surgical soft tissue implants for wounds and hernia repair, could raise $75 million at a $366 million market cap in the week ahead. The company’s cost-effective biologically-derived product offers advantages over synthetic meshes. However, lower procedure volumes due to the coronavirus pandemic weigh on revenue growth.

Real estate SPAC Property Solutions Acquisition (PSACU) plans to raise $200 million. The company is led by Co-CEOs Jordan Vogel and Aaron Feldman, who are the co-founders and Co-Managing Partners of Benchmark Real Estate Group.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Jamf
Minneapolis, MN

$288M
$2,187M

$17 – $19
16,000,000

Goldman
JP Morgan

Provides software for enterprises to remotely deploy Apple devices.

Montrose Environmental
Irvine, CA

$160M
$374M

$15 – $17
10,000,000

BofA
William Blair

Provides environmental assessment, management, and remediation services.

Skillful Craftsman
Jiangsu, China

$15M
$62M

$4.50 – $5.50
3,000,000

Benchmark
Axiom Cap.

Provides online education and technology services in China.

ACell
Columbia, MD

$75M
$366M

$14 – $16
5,000,000

UBS
Barclays

Makes surgical soft tissue implants for wounds and hernia repair.

Property Solutions Acq.
New York, NY

$200M
$257M

$10
20,000,000

EarlyBird

Blank check company formed by Benchmark Real Estate Group targeting the real estate industry.

READ ALSO  An Open Letter to Matt Yglesias

Street research is expected for six companies on Tuesday, 7/21: Agora (NASDAQ:API), Akouos (NASDAQ:AKUS), Albertsons (NYSE:ACI), Ebang International (NASDAQ:EBON), Fusion Pharmaceuticals (NASDAQ:FUSN), and PolyPid (NASDAQ:PYPD). Blue Hat Interactive’s (NASDAQ:BHAT) lock-up period will be expiring on Monday, 7/20.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/16/20, the Renaissance IPO Index was up 37.2% year-to-date, while the S&P 500 was down 0.5%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (NASDAQ:ZM) and Uber (NYSE:UBER). The Renaissance International IPO Index was up 22.4% year-to-date, while the ACWX was down 6.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.



Via SeekingAlpha.com