initial public offerings (IPOs) trading on American exchanges

Monday, November 23, 2020

Warner Music Group (WMG) reported earnings on Thur 19 Nov 2020 (b/o)

  ** charts after earnings **

Warner Music Group Corp. reported Monday a breakeven fiscal fourth quarter, missing expectations, although revenue rose slightly above forecasts. The stock rose 0.8% in premarket trading. Net income for the quarter to Sept. 30 fell to $1 million, or $0.00 on a per-share basis, from $91 million, or 18 cents a share, in the year-ago period. The FactSet consensus for net earnings per share was 5 cents. Adjusted net income, which excludes non-recurring items related to the initial public offering, fell to $20 million from $125 million. Revenue rose 0.2% to $1.13 billion, just above the FactSet consensus of $1.11 billion, as "robust" digital revenue growth was partially offset by a decline in recorded music artist services, and the effects of the COVID-19 pandemic on its music publishing business. "We're essentially flat against a record-breaking prior year and, during the quarter, we grew 11% on an as-reported basis, excluding the revenue streams most impacted by COVID," said Chief Executive Steve Cooper. "Our streaming growth has stayed strong, and we've also seen an acceleration in a whole spectrum of emerging revenue streams such as social media, gaming, and in-home fitness." The stock has lost 3.7% over the past three months through Friday, while the S&P 500 has gained 4.7%.

Thursday, November 19, 2020

Workday (WDAY) reported earnings on Thur 19 Nov 2020 (a/h)

  ** charts after earnings **


Workday beats by $0.19, beats on revs, raises FY21 subscription revenue guidance

  • Reports Q3 (Oct) earnings of $0.86 per share, $0.19 better than the S&P Capital IQ Consensus of $0.67; revenues rose 18.3% year/year to $1.11 bln vs the $1.09 bln S&P Capital IQ Consensus.
  • Reports subscription revenue backlog of $8.87 bln, up 23.4% yr/yr.
  • Outlook: "Based on our strong third quarter, we are raising our fiscal 2021 subscription revenue guidance to a range of $3.773-$3.775 billion. As we enter Q4, we are increasing our pace of investments to capitalize on the long-term opportunity that we see ahead."
  • Co commented during its call that it expects remaining headwinds due to COVID to be more fully evident in next year's subscription revs, weighing on co's growth in the near term.
  • Telos (TLS) began trading on the Nasdaq on Thur 19 Nov 20

    • Telos provides cybersecurity services mainly to the U.S. government, including the CIA and the Defense Department, as well as to large businesses like (AMZN), Microsoft (MSF), and Citigroup (C). Nearly 94% of Telos revenue in 2019 came from government contracts or subcontracts, its prospectus said.
    • Telos swung to a profit this year. The Ashburn, Via., company reported $4.1 million in income for the nine months ended Sept. 30 on $135 million in revenue, the prospectus said. This compares with a loss of $1.2 million on $112.7 million in revenue for the period in 2019. 
    • The company employs 808 employees, but has only eight sales people. 

    Telos upsized and priced previously announced IPO of 14,968,859 shares of common stock at a price of $17.00 per share

    Shares of Telos, one of the first companies to tap the public equity markets since the election, surged in their first day of trading.

    The stock opened at $21.90 and hit a high of $22.20, before closing at $20.29, up 19.35%.

    Telos (ticker: TLS) is one of four companies to make their market debut on Thursday: Olema Pharmaceuticals (OLMA), NeoGames (NGMS), and Yatsen Holding (YSG) also began trading. The group is the first to go public via traditional initial public offerings since the Nov. 3 presidential election.

    “It’s been a long time in the making, and we are really happy to be here,” said John Wood, chairman and CEO of Telos. “We had a tremendous amount of demand. We’re very pleased with the market’s response to our story.”

    Telos raised $254.5 million after boosting the size of its deal. The company sold 14,968,859 shares at $17 each, up from 12,352,942 shares at $16 to $18 it had planned to offer. Underwriters on the deal include B. Riley Securities, BMO Capital Markets, and Needham & Co.

    With 59.84 million shares outstanding, Telos now has a $1.16 billion market capitalization.

    Tuesday, November 17, 2020

    GDRX : 2-month performance

    • Concerns about industry competition weigh on the stock and on drug store names generally after Amazon (AMZN) announced the launch of Amazon Pharmacy, which allows customers to complete pharmacy transactions digitally and which offers unlimited, free two-day delivery and certain savings perks for orders placed by Prime members. Falls to record lows.

    Monday, November 16, 2020

    Lordstown Motors (RIDE) releases business updates

    Lordstown Motors (RIDE) released updates on commercial, operational, and strategic developments; as a highlight among those updates, co indicated that it remains on track to begin production of its full-size, all-electric pickup truck, the Lordstown Endurance, in September 2021, with full production ramping through 2022. Co has received approx. 50,000 non-binding production reservations from commercial fleets for the Lordstown Endurance.

    IPOs this week : November 16 - 20, 20 (wk 47)

     IPOs expected to price

    • Aspire Real Estate Investors (ASPI)
    • NeoGames (NGMS), 
    • Telos (TLS), 
    • Sotera Health (SHC) and 
    • Maravai LifeSciences (MRVI) 
    Maravi appears to be the largest of the bunch, with the biotech looking to raise $1.275B. There is also some speculation that e-retailer Wish and kids gaming company Roblox (RBLX) could file for an IPO next week to follow on DoorDash's (DOORD) filing from Friday. 

    IPO quiet period expirations
    • Guild Holdings (NYSE:GHLD), McAfee (NASDAQ:MCFE) and Datto (NYSE:MSP) on November 16. 
    IPO lockup expirations
    • Chewy (NYSE:CHWY) and 89bio (NASDAQ:ETNB) on November 16, 
    • Avantor (NYSE:AVTR), Futu Holdings (NASDAQ:FUTU) and SelectQuote (NYSE:SLQT) on November 17.

    Friday, October 30, 2020

    Lordstown Motors (RIDE) began trading on the Nasdaq on Mon 26 Oct 20

    • DiamondPeak Holdings Corp. (DPHC) completed business combination with Lordstown Motors. The business combination was approved by DPHC stockholders in a special meeting held on October 22.
    • Beginning on October 26, Lordstown Motors' Class A shares trade on the Nasdaq Global Select market under the ticker symbol "RIDE".
    • Lordstown Motors, which unveiled the prototype of its flagship Endurance pickup truck in June 2020, remains on pace to commence commercial production in the second half of 2021 at its plant in Lordstown, Ohio.

    Monday, October 26, 2020

    IPOs this week : October 26 - 30, 20 (wk 44)

     IPOs expected to price

    • Amerihome (AHM) on October 28. The offering of 14.7M shares is expected to price in a range of $16 to $18. 
    • Biodesix (BDSX) also slated to price its IPO on October 28, with 4.17M shares due to go off in an expected range of $17 to $19. 
    • Allegro MicroSystems (ALGM), Caliber Home Loans (HOMS), Leslie's (LESL), Root (ROOT) and Mavenir (MVNR). 
    IPO quiet period expirations
    • Keep an eye on avocado pure-play Mission Produce (NASDAQ:AVO) with the analyst quiet period expiring following the company's IPO. Shares have shown a modest gain from the IPO pricing level of $12. 
    IPO lockup expirations
    • IPO lockups expire on Sprout Social (NASDAQ:SPT), Lyra Therapeutics (NASDAQ:LYRA) and Zentalis Pharmaceuticals (NASDAQ:ZNTL). 
    Ant Group has secured the final regulatory approval to launch what is shaping up to be the world's largest initial public offering. The Mainland China leg of the IPO will be priced on October 27. Ant has been running a digital IPO roadshow across Asia, Europe and the U.S. to gauge investor interest.

    Thursday, October 22, 2020

    McAfee (MCFE) began trading on the Nasdaq on Thur 22 Oct 20

    •  The company, based in San Jose, California, was acquired by Intel Corp. in a 2010 deal. In 2016, Intel announced that it had signed an agreement to transfer a 51% stake in McAfee to the investment firm TPG for $1.1 billion. The transaction valued the spun-off company at $4.2 billion, including debt.

    • Current backers listed in McAfee’s prospectus include TPG, Intel, Singapore’s sovereign wealth fund GIC Pte and the private equity firm Thoma Bravo.

    • McAfee (MCFE) prices 37 mln share IPO at $20.00 per share, inside the expected range of $19-22

    (Bloomberg) -- McAfee Corp. and its shareholders raised $740 million in an initial public offering priced within a targeted range as the cybersecurity software provider returns to the stock market.

    The company and some of its investors sold 37 million shares for $20 apiece Wednesday, according to a statement. McAfee had marketed 31 million shares for $19 to $22, while its shareholders offered 6 million shares.

    McAfee is valued in the IPO at about $8.6 billion based on the outstanding shares listed in its prospectus.

    Loss to Profit

    For the 26 weeks ended June 27, McAfee had net income of $31 million on revenue of $1.4 billion, according to its filings. That compared with a loss of $146 million on revenue of $1.3 billion for the comparable period last year.

    The offering is being led by Morgan Stanley, Goldman Sachs Group Inc., TPG Capital BD, Bank of America Corp. and Citigroup Inc. McAfee’s shares are expected to begin trading Thursday on the Nasdaq Global Select market under the symbol MCFE.

    The company was founded in 1987 by John McAfee. Since selling to Intel, McAfee has gone through a series of personal legal challenges.

    He was a person of interest in a 2012 murder in Belize, though not charged with a crime. Last year, he was detained in the Dominican Republic for entering the country with a cache of firearms and ammunition.

    The firearms charges were announced just hours after the U.S. Securities and Exchange Commission sued McAfee for promoting the sale of cryptocurrencies without disclosing that he was being paid to do so. This month, he was arrested on tax-evasion charges for allegedly failing to report that income.

    Wednesday, October 21, 2020

    Datto Holding (MSP) began trading on the NYSE on Wed 22 Oct 20

    • Vista Equity Partners acquired Datto in 2017 for $1.3 billion and merged the company with Autotask. Vista will own 70.7% of Datto after the IPO, while Austin McChord, Datto’s founder, will have 13%. 

    Datto Holding (MSP) priced 22 mln share IPO at $27.00 per share, at the top end of the expected range of $24-27

    Datto Holding, a backup-software company backed by Vista Equity Partners, priced at the high end of its initial public offering range, collecting roughly $550 million.

    Late Tuesday, Datto sold 22 million shares at $27 each, the top of its $24 to $27 price range. Datto started trading Wednesday on the New York Stock Exchange under the symbol MSP.

    Morgan Stanley, BofA Securities, Barclays and Credit Suisse are underwriters on the deal.

    Datto is the latest software company to go public. Both Asana(Ticker: ASAN), which offers cloud-based project-management software, and Snowflake(SNOW), a cloud software company, made their debuts in late September. McAfee, the cybersecurity company, is expected to price its offering Wednesday night and begin trading on Thursday.

    Founded in 2007, Datto provides business-continuity software, including backup and disaster recovery, that helps companies secure their data. Datto’s software is delivered through a managed-service-provider, or MSP, channel to small and medium-size businesses. The company had 17,000 MSP partners as of June 30, according to its prospectus. Datto said it helped restore more than 200 million software as a service objects in 2020, the prospectus said.

    The company reported $10.1 million in profit for the six months ended June 30 on $249.1 million in revenue. This compares with $25.7 million in losses a year earlier on $215 million in revenue. Long-term debt stood at $577 million as of June 30. It has 1,653 employees as of June 30.

    With 157,548,740 shares outstanding, Datto has a roughly $4.3 billion market cap, at $27 a share.

    Vista Equity Partners acquired Datto in 2017 for $1.3 billion and merged the company with Autotask. Vista will own 70.7% of Datto after the IPO, while Austin McChord, Datto’s founder, will have 13%.

    The Datto IPO comes just days since Robert Smith, Vista’s CEO, reached a $140 million settlement with the Justice Department, the Wall Street Journal reported. The nonprosecution agreement ends a yearslong U.S. tax investigation and calls for Smith to admit tax fraud as well as not properly filing foreign bank account reports, according to the Journal. Brian Sheth, Vista’s president and co-founder, is now looking to leave the firm, according to media reports.

    Wins Finance (WINS) delisted from Nasdaq

    The origins of Wins Finance as a publicly listed company start with Sino Mercury Acquisition Corporation (SMAC), which was formed as a special-purpose acquisition company. SMAC had been established and listed on the Nasdaq in 2014. The intention of forming the shell company was to raise money and serve as a backdoor for a Chinese company in the non-traditional financial sector to become listed in the US. The founders of SMAC were Richard Xu and Brad Reifler. The sole book runner on the IPO was Cantor Fitzgerald.  SMAC's August 2014 IPO on the Nasdaq would raise $40 million.

    Wins Finance was the target Chinese company acquired by SMAC in 2015 with the merged entity taking the name of Wins Finance. It would start trading on the Nasdaq in October 2015.

    Monday, October 19, 2020

    IPOs this week : October 19 - 23, 20 (wk 43)

    IPOs expected to price
    • McAfee (NASDAQ:MCFE); 37M-share IPO prices in an expected range of $19 to $22. The company's FY19 financials included $2.64B in net revenue with a $236M net loss and adjusted EBITDA of $799M. 
    • Datto Holding (NYSE:MSP
    • Guild Holdings (NYSE:GHLD
    IPO quiet period expirations
    • Corsair Gaming (NASDAQ:CRSR) and Laird Superfood (NYSEMKT:LSF) on October 19; 
    • PMV Pharma (NASDAQ:PMVP), Prelude Therapeutics (NASDAQ:PRLD), Greenwich Lifesciences (NASDAQ:GLSI) on October 20. 
    IPO lockup expirations
    • DraftKings (NASDAQ:DKNG
    • ORIC Pharmaceuticals (NASDAQ:ORIC

    Thursday, October 15, 2020

    Array Technologies (ARRY) began trading on the Nasdaq on Thur 15 Oct 20

     Array Technologies (ARRY) opened its first day of trading at $29.50, up 34% from its $22 pricing. 

    The solar ground monitoring system provider priced the upsized offering of 47.5M shares a dollar above its prior range.

    The offering included 7M shares from Array and 40.5M from a selling shareholder.

    Financials: 2019 sales totaled $647.9M (+123% Y/Y) with $39.7M in net income, up from the prior year's $60.8M loss. For H1 2020, revenue was $552.6M (+145%) with $76M net income.

    Publicly-traded competitor: Gibraltar Industries (NASDAQ: ROCK), owner of solar racking company RBI Solar.

    Wednesday, October 14, 2020

    Codiak BioSciences (CDAK) began trading on the Nasdaq on Wed 14 Oct 20

    •  Codiak BioSciences priced 5.5 mln share IPO at $15, the mid-point of the $14-$16 expected price range, for gross proceeds of ~$82.5M.
    • Underwriters' over-allotment is an additional 825K shares.
    • Closing date is October 16.
    • Goldman Sachs, Evercore ISI and William Blair are acting as joint book-running managers. Wedbush PacGrow is lead manager.

    The Cambridge, Massachusetts-based biotech emerged in 2015 with $31 million in VC funding and ex-Biogen R&D chief Doug Williams at the helm. It picked up another $61 million in a series B round just months later and, in 2017, topped that up with a $76.5 million series C.

    In April 2019, Codiak was ready to hit the Street, filing to raise up to $86 million in its IPO. It withdrew that attempt two months later and refiled in September this year.

    About Codiak
    Codiak is a clinical-stage biopharmaceutical company focused on pioneering the development of exosome-based therapeutics, a new class of medicines with the potential to transform the treatment of a wide spectrum of diseases with high unmet medical need. By leveraging the biology of exosomes as natural intercellular transfer mechanisms, Codiak has developed its proprietary engEx Platform to expand upon the innate properties of exosomes to design, engineer and manufacture novel exosome therapeutic candidates. Codiak has utilized its engEx Platform to generate a deep pipeline of engineered exosomes aimed at treating a broad range of disease areas, spanning oncology, neuro-oncology, neurology, neuromuscular disease and infectious disease.

    Sector(s): Healthcare
    Industry: Biotechnology
    Full Time Employees: 101
    HQ: Cambridge, MA United States

    Tuesday, October 13, 2020

    Opthea Limited plans an IPO


    Opthea Limited, a biotechnology company focussed on retinal diseases, announced Sunday it is seeking an initial public offering in the United States.

    The Melbourne Australia-based biopharmaceutical company will offer American Depositary Shares each of which will represent eight of the company’s ordinary shares.

    Opthea is targeting $160 million in gross proceeds in the offering and is giving underwriters a 30-day option to purchase an additional 15% of the ADSs in the IPO.

    The ADSs will be listed on the Nasdaq Stock Market under the symbol “OPT.”

    Citigroup Inc (NYSE: C) and SVB Leerink have been appointed as joint book-running managers, while Oppenheimer Holdings Inc (NYSE: OPY)-subsidiary Oppenheimer & Co  and Truist Financial Corporation's (NYSE: TFC) division Truist Securities are acting as lead managers.

    On Monday, at press-time, the company’s shares traded at $2.18 in Sydney, which would price an ADR at $17.44.

    Opthea’s focus is on developing a novel therapy for highly preventable and progressive retinal diseases including wet age-related macular degeneration (wet AMD) and diabetic macular edema (DME).

    The company’s lead clinical candidate OPT-302 is under development for use in combination with anti-VEGF-A monotherapies.

    The company — founded in 2012 — raked in $1 million in revenue for 12 months ended June 30, according to Renaissance Capital.

    Roblox plans an IPO

    • Roblox makes freemium games supported with in-app purchases and operates Roblox Studio, a free game creation system that puts the company in competition with recently listed Unity Software (NYSE:U).
    • Gaming company announces confidential filing with SEC after revealing earlier this year that it had more than 150 million active users
    Youth-focused gaming company Roblox Corp. announced Monday that it is in the process of going public.

    The company disclosed in a release Monday morning that it has submitted confidential paperwork with the Securities and Exchange Commission pertaining to a potential initial public offering. Roblox hosts child-friendly games focused on digital characters resembling Lego, and has increased in popularity during the COVID-19 pandemic like many other videogames.

    Roblox announced in July that it had more than 150 million monthly active users on its platform, which topped the latest numbers from a similar game, “Minecraft.” Microsoft Corp.’s (MSFT) Xbox division announced in May that 126 million people were playing that title each month.

    Roblox also offers tools for developers and said in July that its developer community was on pace to earn $250 million in 2020, up from $110 million in 2019.

    Games on the Roblox platform include “Adopt Me!,” a virtual-pet title that had over 10 billion plays as of late July, and “Piggy,” which launched in January and had nearly 5 billion visits in just over six months from its launch date.

    Monday, October 12, 2020

    Catabasis Pharmaceuticals (CATB) : 5-year performance


    IPOs this week : October 12 - 16, 20 (wk 42)

     IPOs expected to price
    • Codiak BioSciences (CDAK), 
    • Array Technologies (ARRY), 
    • MINISO Group (MNSO), 
    • Spinal Elements (SPEL), 
    • Jupiter Wellness (JUPW) and 
    • Aziyo Biologics (NASDAQ:AZYO
    IPO lockup expirations
    • Adaptive Biotechnologies (NASDAQ:ADPT), 
    • Atreca (NASDAQ:BCEL), 
    • HeadHunter Group (NASDAQ:HHR) and 
    • Postal Realty Trust (NYSE:PSTL) on October 14. 
    IPO quiet period expirations
    • Metacrine (NASDAQ:MTCR), Outset Medical (NASDAQ:OM) and Dyne Therapeutics (NASDAQ:DYN) on October 12, as well as 
    • Athira Pharma (NASDAQ:ATHA) on October 13.

    Thursday, October 8, 2020

    China's Lufax files for $3 billion U.S. IPO


    (Reuters) - Lufax Holding Ltd, one of China's largest online wealth management platforms, on Wednesday filed to list its shares in the United States, the latest company looking to take advantage of a rebound in capital markets.

    Lufax, backed by financial giant Ping An Insurance Group <2318.HK> <601318.SS>, aims to raise about $3 billion in its initial public offering (IPO), which could take place as soon as the end of October, said three people with direct knowledge of the matter.

    The sources, who declined to be named as the information was private, added the size of the offering had yet to be finalized and was subject to Lufax's valuation.

    The company, which is looking to list its American depositary shares on the New York Stock Exchange, did not disclose the size of the IPO, but set a placeholder amount of $100 million.

    Lufax didn't immediately respond to a request for comment on its IPO size and timetable.

    Lufax was valued at $38 billion before its latest fundraising in 2018.

    The company's filing follows the listing of OneConnect Financial Technology <OCFT.N>, another fintech company backed by Ping An, which raised $312 million in December 2019.

    It also comes against the backdrop of a number of Chinese companies looking to reconsider their listings on U.S. exchanges amid rising U.S.-China tensions.

    Set up in 2011 as a P2P (peer to peer) platform by Ping An, Lufax has, however, been exiting the once core business as China cracked down on the sector to contain financial risks.

    Lufax postponed a Hong Kong listing slated for the first half of 2018 amid uncertainty over China's consumer lending regulation.

    The company posted a net profit of 7.27 billion yuan ($1.07 billion) for the six months ended June 30, compared with 7.48 billion yuan a year earlier.

    Monday, September 28, 2020

    IPOs this week : Sept. 28 - Oct. 2, 20 (wk 40)

    IPOs expected to price

    • The big debut of the week is Palantir Technologies (PLTR), which is expected to start trading in a direct listing on the NYSE on September 30. Bankers think the software/data analytics company could start off in the $10 range, which would give it a lush market cap of just under $22B. The Denver-based company lost $580M in 2019. 
    • Academy Sports and Outdoors (ASO), 
    • Asana (ASAN),  (direct listing?)
    • Boqii Holding (BQ), 
    • Chindata Group Holdings (CD),  (data centers?)
    • Immunome (IMNM), 
    • WiMi Hologram Cloud (NASDAQ:WIMI), 
    • Mission Produce (AVO), 
    • Pulmonx (LUNG) and 
    • Yalla Group (YALA
    IPO quiet period expirations
    • PainReform (NASDAQ:PRFX) on September 29.

    Tuesday, September 22, 2020

    Stitch Fix (SFIX) reported earnings Tue 22 Sept 20 (a/h)

     ** charts before earnings **


    ** charts after earnings ** 

    Stitch Fix misses by $0.27, beats on revs

  • Reports Q4 (Jul) loss of $0.44 per share, $0.27 worse than the S&P Capital IQ Consensus of ($0.17); revenues rose 2.6% year/year to $443.4 mln vs the $415.52 mln S&P Capital IQ Consensus.
  • Reports active clients of 3.5 million, an increase of 9% year over year.
  • Net revenue per active client of $486, an increase of 2% year over year on an adjusted basis.

  • The San Francisco-based company reported a fourth-quarter loss of $44.5 million, or 44 cents a share, vs. a profit of $7.2 million, or 7 cents a share, in the year-ago period. Adjusted Ebitda, excluding stock-based compensation, was $11.8 million. Revenue rose to $443 million from $432 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 16 cents a share on revenue of $415.2 million.

    Stitch Fix grew its active clients 9% year-over-year to 3.5 million, and CEO Katrina Lake said in a statement that she was proud of her team for “successfully navigating through the deepest impacts of COVID-19” and expressed optimism about the future of online shopping.

    Stitch Fix shares have risen more than 19% so far this year, about on par with the Nasdaq Composite Index COMP, -2.73%, which is up about 20%.

    Monday, September 21, 2020

    IPOs this week : September 21 - 25, 20 (wk 39)

    IPOs expected to price

    • Corsair Gaming (CRSR), GoodRx (NASDAQ:GDRX), RiverNorth Flexible Income Fund (NYSE:RFM) and Amesite Operating (AMST). 
    Of the bunch, Corsair may generate the most interest with the gaming sector heating up. The California-based provider of gaming gear and content is aiming to sell up to $252M worth of shares to value the company at up to $1.65B. 

    IPO lockup expirations
    Also, keep an eye on TELA Bio (NASDAQ:TELA), with 34% of its outstanding float being freed up through the expiration of an IPO lock-up period. 

    Across the Pacific in Hong Kong, secondary share offerings are expected to start trading for ZTO Express (NYSE:ZTO), Zai Lab (NASDAQ:ZLAB) and Baozun (NASDAQ:BZUN), while SoftBank (SFTNY) aims to hand over shares between September 23-25 for its secondary offering of its telcoms business.

    Saturday, September 12, 2020

    IPOs this week : September 14 - 18, 20 (wk 38)

    IPOs expected to price
    • Amwell (AMWL), 
    • JFrog (FROG), 
    • Outset Medical (OM), 
    • Pactiv Evergreen (PTVE), 
    • Broadstone Net Lease (BNL), 
    • Snowflake (SNOW), 
    • Sumo Logic (SUMO), 
    • Unity Software (U) and 
    • Vitru (VTRU). 
    Snowflake is the big name to watch after the company attracted $570M from Berkshire Hathaway (NYSE:BRK.A) and $250M from (NYSE:CRM) for Class A shares. The data warehouse company plans to raise $2.2B by offering 28M shares in a price range of $75 to $85 to give it a market valuation in the range of $20.9B to $23.7B. The IPO will result in Class B shareholders having about 98% of the voting power at the company.

    Monday, September 7, 2020

    Ant Group is going public

    The crown jewel of the sprawling Alibaba (NYSE:BABA) empire, Ant Group - formerly known as Ant Financial - has filed for an IPO on the Shanghai stock exchange's STAR market and the Hong Kong stock exchange. 
    The firm is reportedly targeting a valuation of about $225B, based on an IPO of about $30B if markets are favorable, making it larger than some of America's biggest banks. Ant Group, which is still controlled by Alibaba founder Jack Ma, runs the popular Alipay mobile payments app in China which has over 900M users. It also offers other financial products and could use proceeds from the IPO to expand cross-border payments and enhance its research and development capabilities.

    Thursday, September 3, 2020

    Electric cars : Solid-state lithium battery maker QuantumScape

    Solid-state lithium battery maker QuantumScape is becoming a publicly traded entity through a merger with special purpose acquisition company, or SPAC, Kensington Capital Acquisition (NYSE:KCAC). QuantumScape wants to disrupt the automotive industry—and the EV space—by offering a better mousetrap.

    Including $200 million from the Kensington’s trust fund and a $500 million private investment in public equity, or PIPE, the transaction will provide about $700 million in proceeds to QuantumScape. The deal values the company at about $3.3 billion.

    None of the current shareholders are using the transaction as a chance to cash out—a good sign for any SPAC transaction. After the deal closes, QuantumScape will have north of $1 billion of cash on its balance sheet.

    For QuantumScape, the “SPAC deal represented was a much faster and more streamlined way to become public compared with the traditional IPO process,” explains founder and CEO Jagdeep Singh. “Combined with the value that partnering with Kensington in particular brings—they’re a bunch of auto guys—it just made the most sense to take this route.”

    Kensington Capital, the SPAC sponsor, is an automotive industry focused investment bank based outside of New York City. Justin Mirro, the SPAC’s chairman and CEO, began his career at General Motors (GM) before moving to investment banking focused on the automotive sector.
    EVs appear to be taking over the car business—as the epic rise in Tesla (TSLA) stock portends. Telsa is now the world’s most valuable car company by a wide margin.

    That makes EV batteries very important to the auto industry and to investors. Solid-state batteries promise lower cost and higher power density than existing battery technology. That’s a panacea for EV makers—a battery that is relatively cheap and light weight, making the upfront costs of EVs comparable to gasoline-powered cars. Solid state batteries charge faster too.

    It’s taken a while to get solid state right. QuantumScape believes it is there, pointing out that Volkswagen (VOW.Germany) has tested and validated Quantum’s solid-state batteries and plans to commercialize them by 2025. That might feel like a long way off, but “the automotive cycle is long,” explains Singh. “People have recognized solid state potential for decades.”

    Monday, August 31, 2020

    Aimmune Therapeutics (AIMT) to be acquired by Nestle (NSRGY) for $34.50 per share

    • Following years of increasing its financial position in California-based Aimmune, Sociétés des Produits Nestlé, S.A., a part of Nestlé Health Science, acquired the outstanding shares of the food allergy-focused company for $2.6 billion in cash.
    • Aimmune, which won regulatory approval in February for Palforzia, a first-of-its-kind treatment for patients with peanut allergies. Palforzia [Peanut (Arachis hypogaea) Allergen Powder-dnfp] is an oral treatment indicated to mitigate allergic reactions to peanuts.


    Aimmune Therapeutics to be acquired by unit of Nestle Health Science (NSRGY) for $34.50 per share

  • Aimmune Therapeutics, a biopharmaceutical company developing and commercializing treatments for potentially life-threatening food allergies, announced that it has entered into a definitive agreement for Socits des Produits Nestl, S.A. to acquire Aimmune for $34.50 per share in an all-cash transaction, implying a fully-diluted equity value of $2.6 bln. Socits des Produits Nestl, S.A. is a part of Nestl Health Science (NHSc) and a wholly owned subsidiary of Nestl S.A.
  • Under the terms of the merger agreement, Nestl S.A.'s wholly-owned subsidiary Socit des Produits Nestl S.A. (SPN) will commence a cash tender offer to acquire all outstanding shares of Aimmune common stock that are not already owned by NHSc for $34.50 per share in cash, and Aimmune agreed to file a recommendation statement containing the unanimous recommendation of the independent members of the Aimmune board that Aimmune stockholders tender their shares to SPN.
    • Following the completion of the tender offer, Nestl expects to promptly consummate a merger of Aimmune with a subsidiary of SPN, in which shares of Aimmune that have not been tendered in the tender offer will be acquired by SPN and converted into the right to receive the same cash price per share as paid in the tender offer.