initial public offerings (IPOs) trading on American exchanges

Thursday, September 27, 2018

SVMK Inc. (SVMK) began trading on the Nasdaq on 26 Sept 2018

The company was formerly known as SurveyMonkey Inc. and changed its name to SVMK Inc. in March 2013. The company was founded in 1999 and is headquartered in San Mateo, California.

  • SurveyMonkey priceD upsized 15 mln share IPO at $12 per share, above the expected $9-11 per share range (initially 13.5 mln shares). Closed its first day of trading 43.7% above its IPO price of $12.00/share.
  • Sector: Technology
  • Industry: Software - Application
  • Full Time Employees: 857

Zander Lurie has been chief executive of SurveyMonkey since 2016, after taking over for the deceased Dave Goldberg.

David Goldberg was CEO of SurveyMonkey before he died in 2015. His wife, Facebook's Sheryl Sandberg, is on the company's board, and her trust holds a 10% stake. 

Founded almost two decades ago, SurveyMonkey had more than 16 million active users in the last year, according to the IPO filing. The company, based in San Mateo, Calif., said more than 600,000 of its total users pay for its services.

In the first half of 2018, SurveyMonkey’s net loss increased to $27.2 million from $19.1 million in the same period last year.

In 2017 it had a net loss of $24 million on revenue of $218.8 million. That compared with a net loss of $76.4 million on $207.3 million in revenue in 2016.

Tiger Global Management holds the largest stage in the company, with 29% of the stock before the IPO.

The company has 600,000 paying customers, about 80% of which use the various survey products for business purposes. The company says 300,000 organizations use the software and that it is focused on turning nonpaying customers into paying ones.

The company logged second-quarter sales of $62.7 million, up from $53.5 million in the same quarter last year. For the calendar year 2017, SurveyMonkey booked revenue of $218.8 million, up from $207.3 million in 2016. Average revenue per user has also been climbing. For 2017 it was $362, up from $349 in 2016. And in the first six months of this year it was $400, up from $351 during the first six months of 2017.

The company offers a free version as a marketing strategy

Like Dropbox and other software businesses, SurveyMonkey offers a free version of its software that’s limited in its functionality, as well as self-serve only. The idea, as with others who use similar sales strategies, is that showing potential customers how useful the tools can be will entice them to buy the full version.

The company says that most of the company’s business historically has been driven by “organic adoption” and “viral growth” in large part because of the free users converting to paying customers. SurveyMonkey says that 80% of new individual paying customers arrive at the company’s website directly or via search. In the prospectus, SurveyMonkey wrote that most unpaid customers do not convert. The company says it is ramping up its sales force to encourage faster growth.

Cash, shrinking losses and debt

Unlike some companies that have gone public in recent weeks, SurveyMonkey has a fair bit of cash on hand — $43.4 million — and says it can operate for at least 12 months. SurveyMonkey reported a net increase of $8.2 million in cash for the first six months of the year, compared with $3.4 million in the year earlier period.

The company’s net losses have also narrowed sharply, logging $24 million in net losses for calendar year 2017, compared with losses of $76.4 million in 2016.

The company said it has a total of $322 million in debt on the books as of the end of June. According to the prospectus, the company will use part of the IPO proceeds to repay those debts. SurveyMonkey also said it would use some of the IPO money to repay tax obligations and to finance continuing operations.

Wednesday, September 26, 2018

Arco Platform (ARCE) began trading on the Nasdaq on 26 September 2018

Arco Platform Limited (Nasdaq: ARCE), a Brazilian EdTech startup that provides complete pedagogical solutions to private schools in Brazil.
  • The first Brazilian company to go public on the Nasdaq
  • Arco Platform priced 11.11 mln shares at $17.50, the high-end of the expected $15.50-17.50 range
  • Opened for trading at $24.50.

The company raised around $220 million in a highly sought initial public offering. Shares were priced at $17.50 on Tuesday, the top of their indicated range, as investors seemed to shrug off political uncertainties over the country’s presidential election.

Arco Chief Executive Ari de Sá Cavalcante Neto said that in addition to eyeing rival learning systems, the company is likely to seek providers of services complementary to primary and secondary private schools.

As examples, he cited school management tools or apps to handle communication between teachers and children’s families and systems that teach in accordance with students’ specific needs.

In meetings with investors, Arco marketed itself more as a technology company than as an education company, as it delivers part of its learning system to schools through digital platforms.

Also key to a successful IPO was the fact that Arco kept growing in terms of the number of schools and students using its services during Brazil’s recent recession, the worst in decades.

The for-profit education company was founded in 2004 by the Sá Cavalcante family. Ten years later, U.S. private equity firm General Atlantic acquired a minority stake.

X Financial (XYF) began trading on the NYSE on 21 September 2018

Shenzhen-based X Financial, a FinTech company specializing in facilitating credit transfers and high-credit-limit unsecured loans, is  selling 11 million American depositary shares at $9.50 per share.

The company, to trade under the ticker symbol "XYF," would raise $104.5 million in its initial public offering. The pricing was above the lower end of the expected range of $9 to $11 per ADS.

X Financial's stated mission is "to utilize internet technology to build the leading personal finance company in China." Investors on X Financial's platform can access diversified investment opportunities supplied with insurance, a rare factor seen in less than 3 percent of online consumer finance marketplaces in China, according to research by consultancy Oliver Wyman.

The company first targeted as much as $250 million in its preliminary prospectus filed two weeks ago before reducing the amount of its offering to $110 million.

As of June 30, the company reported nearly 1.3 million active borrowers and 199,000 individual investors. For the full year 2017, it had 2.2 million borrowers and 198,000 investors compared with 209,000 borrowers and 95,000 investors in 2016.

For 2017, X Financial reported revenue of $270 million. For the first half of 2018, its revenue reached $279.3 million. Net income for the full year 2017 was $51.3 million in contrast to a net loss of $17.9 million for 2016. For the first half-year of 2018, The company posted $67 million in profit.

Viomi Technology (VIOT) began trading on the Nasdaq on 25 September 2018

Smart-home products company.
Shares of China-based Viomi Technology Co. Ltd. (VIOT) shot up as much as 22% above the initial public offering price of $9 in its public debut, before pulling back sharply. After the initial run up to an intraday high of $10.95, the stock fell to a low of $8.97, or 0.3% below its IPO price, before bouncing slightly to be up 0.7% in afternoon trade.

  • Headquarters: China
  • Founded: 2014
  • Offered 11.4 million shares priced at $9
  • The company raised $102.6 million in the IPO, which valued the company at $811.8 million.

With China's smartphone maker Xiaomi Corp. (HKEX: 1810) as its main partner, Viomi provides home appliances enabled with Internet connectivity and powered with artificial intelligence. Viomi's products, including dishwashers and water purifiers, can be controlled through a mobile platform, while some devices, like refrigerators, recognize voice commands.

As of June 30, the company said its "IoT @ Home" product had a user base of more than 1.2 million, a level reached in four years since the company's inception. For the first half of 2018, its revenue soared 284 percent year-over-year to $157.2 million. Last year, revenue was $132 million, up 179 percent from 2016. Income for the year was $14 million.

Sales to Xiaomi, which recently began trading its stock publicly in Hong Kong, during the first six months this year reached $98.5 million, Viomi said in its prospectus.

The underwriters on Viomi's IPO were Morgan Stanley and China International Capital Corporation Ltd. (CICC).

Uxin (UXIN) began trading on the Nasdaq on 27 June 2018

Uxin Limited operates a used car e-commerce platform in China. 
Priced 25 million American depositary shares at $9 per share, below the expected range.
Raised $225 million with an initial public offering
This was the busiest week for IPOs in three years.
  • Sector: Technology
  • Industry: Internet Content & Information
  • Full Time Employees: 12,461
  • Founded in 2011
  • Based in Beijing, China.

company website

Founded in 2011, the platform is the largest of its kind in China in terms of both the number of transactions facilitated and the sales value in 2017, according to iResearch. It has been backed by two large investors, Warburg Pincus LLC and Baidu Inc. (Nasdaq: BIDU), which hold a combined 24 percent stake as well as senior management roles in the company, according to Uxin's prospectus.

The Beijing-based company operates two businesses on its platform. The Used Car (business-to-consumer) segment provides information regarding recommendations, financing, documents, delivery, and warranty, among other things. The Auction (business-to-business) platform helps companies acquire and deliver vehicles.

The company also provides inspection services to assess the quality of used vehicles and generate reports for consumers.

Uxin said its network had more than 670 service centers in 270 Chinese cities at the end of March. It sold 165,000 cars in this year's first quarter, nearly 62 percent more than in the same period of 2017. For all of 2017, Uxin reported it sold more than 634,000 cars, representing a 68 percent increase from a year earlier.

EverQuote (EVER) :3-month performance

Domo, Inc. (DOMO) : 3-month performance

Lovesac (LOVE) began trading on the Nasdaq on 27 June 2018

Lovesac is a retailer that specializes in a patented modular furniture system called Sactionals. It also makes premium foam beanbag chairs called Sacs.
  • Sector: Consumer Cyclical
  • Industry: Home Furnishings & Fixtures
  • Full Time Employees: 198
  • Founded in 1998
  • Headquartered in Stamford, Connecticut.

Lovesac raised $56 million, pricing 3.5 million shares at an above range price of 16. Shares opened at 25 for a gain of 56% on its first trades. Lovesac shares closed at 23.99, up 49.9%.

Tuesday, September 25, 2018

Eventbrite (EB) : 1-week performance

  • 1 week

  • 2 weeks

  • 4 weeks

Manchester United (MANU) reported earnings on Tue 25 Sept 18 (b/o)

** charts after earnings **


Manchester United misses by GBP 0.02, beats on revs; guides FY19 revs in-line 
  • Reports Q4 (Jun) loss of GBP0.01 per share, excluding non-recurring items, GBP0.02 worse than the single analyst estimate of GBP0.01; revenues fell 16.4% year/year to GBP147.1 mln vs the GBP141.93 mln S&P Capital IQ Consensus. Commercial revenue for the year was 276.1 million, an increase of 0.6 million, or 0.2%, over the prior year. Adjusted EBITDA of 177.1 million.
  • Co issues in-line guidance for FY19, sees FY19 revs of GBP 615-630 mln vs. GBP625.11 mln S&P Capital IQ Consensus. Co sees FY19 adjusted EBITDA of GBP 175-190 mln.

Friday, September 21, 2018

Long trade : LBRT +20% (9/18)

  • 10 Sept.:  vol. 1.09M;  $17.80

QTT : 1-week performance

Farfetch Ltd. (FTCH) began trading on the NYSE on 21 September 2018

Farfetch is an online luxury fashion retail platform that sells products from over 700 boutiques and brands from around the world. 

  • Headquarters: London, United Kingdom
  • Founder: José Neves
  • Founded: June 2007
  • Number of employees: 3,000

Shares of Farfetch Ltd. (FTCH) soared in their public debut in the U.S. Friday, trading as much as 39% above its initial public offering price in the open minutes. The first trade for the U.K. luxury-clothing maker's stock was at $27.00, or 35% above the $20 IPO price, at 11:27 a.m. ET for 5.4 million shares. The stock has traded in a range of $27.00 to $28.00 since. The company sold 44.2 million shares to raise $884 mililon in the IPO, which is trading on the NYSE under the ticker symbol "FTCH."

Thursday, September 20, 2018

TLRY : 2-month performance

Eventbrite (EB) began trading on the NYSE on 20 Sept 2018

Eventbrite, Inc. operates a ticketing and experience technology platform in the United States and internationally.
  • Sector: Technology
  • Industry: Software—Application
  • Full Time Employees: 1,111
  • Incorporated in 2008 
  • HQ in San Francisco, California.
Eventbrite priced 10 mln share IPO at $23.00, the high-end of the boosted $21.00-23.00 range
Opened for trading at $36 after pricing IPO at $23

Elanco Animal Health (ELAN) began trading on the NYSE on 20 Sept 2018

Elanco Animal Health Inc.  (ELAN) shares soared more than 35% Thursday in their trading debut, after the company priced the stock above its price range. Elanco, a spinoff from Eli Lilly & Co. (LLY) was founded in 1954.
  • Sector: Healthcare
  • Industry: Drug Manufacturers - Specialty & Generic
  • Full Time Employees: 4,500
  • HQ: Greenfield, Indiana
Offer price: 62.9 mln share IPO at $24 per share, above the expected $20-23 per share range
Opened at $32.25
Offer size: $1.7 billion
Goldman Sachs. J.P. Morgan and Morgan Stanley were book-running managers on the deal.

Friday, September 14, 2018

Qutoutiao (QTT) began trading on the Nasdaq on 14 September 2018

  • Chinese content aggregator Qutoutiao Inc, backed by the country’s technology giant Tencent Holdings Ltd.
  • HQ: Shanghai, China

Priced downsized 12 mln ADS IPO (from 16 mln ADS) at $7.00, the low-end of the expected $7.00-9.00 range

The content aggregator start-up Qutoutiao, which means "fun headlines" in Chinese, collects articles and short videos from professional media and freelancers, and then presents customized feeds to users on its namesake mobile application. These feeds are optimized in real time based on each user’s profile, behavior and social relationships through the application’s AI-powered content recommendation engine.

The company ranks second among all the news apps in Apple’s Chinese App Store as of the writing, only after its biggest rival Toutiao, a Beijing-based news and information content platform.

Qutoutiao monetizes its platform mainly through advertising. Overall revenue grew to $101.2 million in the first six months of the year, up from just $16.1 million in the first half of 2017. Losses swelled as well, reaching $78 million in the first half of 2018, up from $4.3 million a year earlier. It had 17.1 million daily active users, as of July, who spent an average of 55.6 minutes on the platform each day.

Qutoutiao has close ties to Tencent, which was a lead investor in its series A financing round in January 2017 and series B financing round in March 2018.

Citigroup Global Markets, Deutsche Bank Securities, China Merchants Securities (HK) Co Ltd and UBS Securities and KeyBanc Capital Markets are the underwriters for the company’s American IPO.

FVCBankcorp (FVCB) began trading on the Nasdaq on 14 September 2018

  • Headquarters: Fairfax, Virginia
  • Founded: 2015
  • Sector: Financial Services
  • Industry: Banks - Regional - US
  • Full Time Employees: 98

Priced 1.75 mln share IPO at $20.00, the midpoint of the expected $19.00-21.00 range

Nio (NIO) began trading on the NYSE on 12 September 2018

NIO is a Chinese start-up automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric autonomous vehicles. The company offers electric cars under EP9, EVE, and ES8 brand names.
  • Founded: 2014
  • Number of employees: 4,000
  • Sector: Consumer Cyclical
  • Industry: Auto Manufacturers
  • "China’s Tesla"

Nio sold 160 million American depositary shares priced at $6.26 each, barely above the low end of its price range of $6.25 to $8.25. The company raised $1.00 billion and could raise up to $1.15 billion if all the options granted to underwriters to buy additional shares are exercised.

The deal is among the larger U.S. IPOs this year, behind Axa Equitable Holdings’ (EQH) $3.16 billion, PagSeguro Digital’s (PAGS) $2.6 billion, and iQIYI Inc.’s (IQ)  $2.4 billion.

Unusual—and risky—corporate structure
Like many Chinese companies with listings outside of China, Nio is a variable-interest entity, or VIE, a structure created in the 1990s as a workaround for Chinese companies that are not allowed to have direct foreign ownership.

Under the VIE structure, the Chinese company creates two entities, one in China that holds the permits and licenses needed to do business there and the other an offshore entity, in this case in the Cayman Islands, in which foreign investors can buy shares. The Chinese entity, which is usually owned by top executives, pays fees and royalties to the offshore company in contractual arrangements.

The biggest example of a VIE is Alibaba Group Holding Ltd., in which the Chinese entity is wholly owned by its founder and chairman, Jack Ma.

The risk with this setup is that foreign investors don’t actually own stock in the company, and local management or even the Chinese government could decide or force a split with the listed company, leaving U.S. investors high and dry.

“It is uncertain whether any new PRC laws or regulations relating to variable interest entity structures will be adopted or if adopted, what they would provide,” the company warns in its prospectus.

Principia Biopharma (PRNB) began trading on the Nasdaq on 14 September 2018

Priced 6.25 mln share IPO at $17.00, the high-end of the expected $15.00-17.00 range
Opened for trading at $25.66