IPO Candygram week of 5.18.2020
Last week we had another lone biotech deal, ADC Therapeutics (ADCT), which tried to go public last year. They were successful this time, pricing above the range at $19 and subsequently trading to $30.
There are a handful of deals on the calendar and a definite uptick in new filings. If the markets hold together the bankers will likely try and push through as many deals as they can lest things turn ugly again.
Here is what's on tap for this week:
B. Riley Merger II (BMRG) is another SPAC from B. Riley is scheduled for Tuesday night. The size of this one is $200M.
SelectQuote (SLQT) is an online insurance marketplace. It's a fairly large deal at $450M with a $3B market value. The price range is $17 - $19 and it's scheduled for Thursday night. Since we've done some work on this space with EverQuote (EVER) we will send out a separate note on this one.
Inari Medical (NARI) is a medical device company aiming at venous diseases, like the removals of clots and deep vein thrombosis (DVT). Revenues are $71M and growing 6x YoY. The projected market cap of $700M is 10x sales. The company is already profitable. This one is scheduled for Thursday night and the current range is $14 - $16.
There were nine new filings last week and some of them are attracting attention:
Dada Nexus (DADA) is the now-famous retail and online delivery platform in China. Goldman is leading the $500M IPO. Revenues are ~$4B and growing 60%. Like other "on-demand" companies like Uber (UBER) and Lyft (LYFT), they are losing money to the tune of $1.6B lost on $3.6B in revenue.
Shift4 Payments (FOUR) is a payment processor planning a $300M IPO with Citibank, Credit Suisse, and Goldman on the cover. Revenues are growing 30% and will be closing in on ~$1B when they start marketing. The company is already generating operating profits.
Another CAR-T biotech name, Legend Biotech (LEGN), is planning a $100M IPO with Morgan Stanley leading the charge. So far investors have been eager to own these acute cancer therapy drugs.
The rest were comprised of some SPAC and smaller biotech deals. There's also the usual "wacky deal" which is Coro Global (CORO) which seems to be trying to marry blockchain technology to gold. Of course, it's based in Miami Florida, and has just two employees. If they make it to marketing the roadshow should be entertaining.
The Candyman
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