With stocks on the rise, the environment is ideal for new IPOs. Today we definitely got evidence of this with the Lyft (NASDAQ:LYFT) offering. The company priced its shares at $72, raising about $2.2 billion. So far in early trading, Lyft stock is up 22%.
The company is one of the largest players in the fast-growing ride-hailing market. Last year, the company posted revenues of $2.2 billion, up from $1.1 billion.
But of course, there are still other new IPOs ready to hit the markets. And it’s important to keep in mind that the Lyft deal could overshadow them.
So what are these deals? Well, let’s take a look at four that will launch within the next week or so …
Upcoming IPOs: NGM Biopharmaceuticals
Founded in 2008, NGM Biopharmaceuticals is a clinical-stage biotech company that is developing a variety of treatments, such as for liver, cardio-metabolic oncologic and ophthalmic diseases.
According to the company: “Our process pairs a research approach that generates novel insights into pathways demonstrating powerful biological effect with the expertise in protein and antibody engineering to transform those insights into product candidates. We then rapidly advance the program to evaluate the effect of these product candidates on biomarkers of disease or target activity in order to enable early demonstration of human proof of concept.”
Currently, the company has seven product candidates. And as for the lead, it is NGM282, which will go into Phase 2B trials soon. The drug is focused on non-alcoholic steatohepatitis or NASH.
A key for NGM Biopharmaceuticals is the collaboration with Merck (NYSE:MRK), which the company recently extended by two years. The deal involves up to $20 million in R&D as well as milestone payments. Although, MRK did terminate its license for NGM’s GDF15 program (its focused on obesity).
Regarding the IPO, NGM plans to issue 6.7 million shares at a range of $14 to $16 and to list on the Nasdaq under the symbol of NGM. The lead underwriters include Goldman Sachs, Citi and Cowen.
Upcoming IPOs: Ruhnn
Ruhnn has built the leading platform for so-called KOLs, or key opinion leaders, in China. These are people who are also known as influencers — that is, they can have much power to impact fashion and culture via social media. Of course, they also have a big impact on commerce. So Ruhnn’s platform connects its KOLs — which account for 148.4 million fans — with brands, online retailers and manufacturers.
Growth has certainly been robust. From 2017 to 2018, revenues jumped from RMB577.9 to RMB947.6. Although, the company continues to lose money.
Yet the market opportunity looks bright. According to Ruhnn’s S-1, the spending on KOL facilitators is forecasted to grow at a 38.9% CAGR (compound annual growth rate) to RMB200.9 billion by 2022.
As for the IPO, Ruhnn plans to issue 10 million shares at a range of $11.50 and to $13.50 and to list on the Nasdaq under the ticker of RUHN. The lead underwriters include Citi and UBS.
Upcoming IPOs: Silk Road Medical
Silk Road Medical is a medical device company that helps to reduce the risk of stroke. The company’s approach is called transcarotid artery revascularization, or TCAR, which is minimally invasive and leverages innovative endovascular techniques.
Note that the company has received FDA approvals and obtained Medicare coverage. As of last year, there were 4,600 procedures performed for TCAR. From 2017 to 2018, revenues soared by 142% to $34.6 million.
Silk Road Medical estimates that there are 4.3 million people who suffer from carotid artery disease in the United States and there were 427,000 new diagnoses in 2018. Based on this, the company estimates the market opportunity at about $2.6 billion.
In terms of the IPO, Silk Road Medical plans to issue 4.7 million shares at a range of $15 to $17 and list on the Nasdaq under the ticker of SILK. The lead underwriters on the offering include JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC).
Upcoming IPOs: Tradeweb Markets
Founded over 20 years ago, Tradeweb Markets operates online marketplaces for asset managers, hedge funds, central banks, and other financial services firms. The trading involves a variety of asset classes like equities, money markets and credit.
Last year, the total trading volume was over $549 billion for over 40 products. During this period, revenues hit $684.4 million, up 21.6% and net income came to $101 million.
With the IPO, Tradeweb will be in a better position to pull off M&A deals. But this will likely be more than just capturing market share. Keep in mind that the company has been focused on bolstering its predictive analytics capabilities, as seen with the acquisition of CodeStreet in 2016.
The Tradeweb IPO will be one of the year’s largest, with the expected amount raised to be nearly $700 million. The company will list on the NASDAQ under the ticker of TW and the lead underwriters include JPMorgan, Citi, Goldman Sachs and Morgan Stanley (NYSE:MS).
Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
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