After an active July, the US IPO market is taking a breather. Three companies are scheduled to raise $2.5 billion in the week ahead, led by Chinese real estate giant KE Holdings (BEKE).
KE Holdings, China’s largest housing platform operating under the Lianjia and Beike brands, plans to raise $1.9 billion at a $20.7 billion market cap. Insiders, including Tencent and SoftBank, have indicated on $800 million of the IPO. Fast-growing and profitable in the 1H20, the company’s platform had over 260 real estate brokerage brands, 42,000 community-centric stores, and 456,000 agents across 103 cities in China as of 6/30/20.
Duck Creek Technologies (DCT), which provides a SaaS platform for P&C insurers, plans to raise $300 million at a $2.6 billion market cap. Duck Creek counts some of the largest P&C insurers as customers including Progressive, Liberty Mutual, and AIG. Profitable on an EBITDA basis, the company’s gross margin contracted in the FY19 and 9mo FY20 as it shifts to lower-margin professional services.
Netstreit (NTST), a REIT managing single tenant retail commercial properties, plans to raise $310 million at a $554 million market cap, and it plans to offer a 4% yield at the midpoint. Netstreit’s portfolio includes 163 single-tenant retail net leased properties spanning 34 states, and its tenants include brands such as 7Eleven, Walmart, and CVS.
|
U.S. IPO Calendar |
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|---|---|---|---|
|
Issuer |
Deal Size |
Price Range |
Top |
|
KE Holdings |
$1,908M |
$17 – $19 |
Goldman |
|
China’s largest housing platform operating under the Lianjia and Beike brands. |
|||
|
NetSTREIT |
$310M |
$19 – $21 |
Wells Fargo |
|
Net lease REIT that manages single-tenant retail commercial properties. |
|||
|
Duck Creek Tech. |
$300M |
$19 – $21 |
Goldman |
|
Provides a SaaS platform that streamlines business processes for P&C insurers. |
|||
Street research is expected for eight companies. On Monday 8/10: nCINO (NASDAQ:NCNO), GoHealth (NASDAQ:GOCO), Relay Therapeutics (NASDAQ:RLAY), and Trean Insurance (NASDAQ:TIG). On Tuesday 8/11: ALX Oncology (NASDAQ:ALXO), Berkeley Lights (NASDAQ:BLI), Pandion Therapeutics (NASDAQ:PAND), and Renalytix AI (NASDAQ:RNLX).
Lock-up periods will be expiring for four companies. One Monday 8/10: Huize (NASDAQ:HUIZ). On Tuesday 8/11: Houlihan Lokey (NYSE:HLI), Revolution Medicines (NASDAQ:RVMD), and Trxade Group (NASDAQ:MEDS).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/6/20, the Renaissance IPO Index was up 49.1% year-to-date, while the S&P 500 was up 3.7%. 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 30.8% year-to-date, while the ACWX was down 4.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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