Initial Public Offerings (IPO) of a company’s shares are always compelling and stimulating to the investors and the financial markets as whole. These also facilitate the opportunity for the financial services firms on Wall Street to mint hefty commissions.
The U.S. initial public offering market is gearing up for another week with seven deals. The deals come at a time when the IPO market has been performing strongly, rebounding from a lull earlier in the year when the pandemic began to spread widely. The Renaissance IPO ETF IPO, 2.16% has gained 34% in the year to date, easily outperforming the S&P 500 SPX, 0.74% which is up 0.1%.
1.) Vertex – Expected valuation of the company is $2 Billion
Vertex is the tax technology company built on trust. It’s vision is to accelerate global commerce by reducing friction, increasing transparency, and enabling greater confidence in meeting indirect tax obligations.
“We will accelerate global commerce one transaction at a time.” – David Destefano, President, CEO and Chairperson of the Board
Vertex is aiming to raise $317 million in its IPO. The family-owned company “has a track record of profitability and strong cash flow generation, and it has achieved growth at scale,” said Smith. “However, the company plans to increase spending to accelerate growth, and the IPO proceeds will go to debt (and) to fund an insider dividend.” The company will list on Nasdaq, under the ticker “VERX.”
2.) Vital Farms – Expected valuation of the company is $692 Million
Vital Farms is on a mission to bring ethically produced food to your table. That starts with girls on grass year-round, but it doesn’t stop there! Let Vital Farms eggs, butter and ghee show you how delicious ethical food can be.
Vital Farms began with a husband and wife, 20 Rhode Island Reds, an Austin pasture and a commitment to animal welfare. Matt and Catherine aspired to produce ethical food and a sustainable business. Instead, they built a transformational one. Today Vital Farms partners with approximately 200 family farms. Every hen is humanely treated, every egg is pasture-raised and we continue to elevate our (and the industry’s) standards, continuing Matt’s commitment to ethics over profits.
An ethical food company that is the biggest producer of pasture-raised eggs in the U.S., and aims to raise $125 million at a market valuation of $692 million. The company will list on Nasdaq, under the ticker “VITL.”
3.) Li Auto – Expected valuation of the company is $7.9 Billion
Chinese electric-car maker Li Auto Inc. LI, +10.00% said late Friday it expects to sell up to 95 million American depositary shares in a range between $8 and US$10 in its initial public offering. Li Auto filed for the IPO earlier this month. Goldman Sachs, Morgan Stanley and UBS are among the underwriters.
Li’s IPO comes on the heels of recent IPO successes for electric-vehicle makers such as Nikola Corp. NKLA, +10.96% and of share rallies for Tesla Inc. TSLA, +8.65% and Nio Inc. NIO, -1.10%, also a Chinese EV maker. Li said it started volume production of its first model, an SUV called Li One, in November 2019, and that it has delivered more than 10,400 Li One vehicles as of June 30. Li said it focuses on SUVs costing between $21,000 and $70,000, seeking to offer customers “unparalleled value for money with the performance, functionality, and cabin-space of a large premium SUV but pricing close to a compact premium SUV,” it said.
Li Auto, a maker of electric SUVs in China, is expected to raise $855 million at a $7.9 billion market cap. That company will also list on Nasdaq, under the ticker ‘LI.”
4.) Vasta Platform – Expected valuation of the company is $1.4 Billion
Vasta Platform (VSTA) intends to raise $306 million from the sale of its Class A common stock in an IPO, according to an amended registration statement.
The company provides education content and administrative technology solutions to K-12 partner schools in Brazil.
Vasta has performed well but is exposed to the growing effects of the Covid19 pandemic and, for U.S. investors, the continued depreciation of the Real against the dollar.
Sao Paulo, Brazil-based Vasta was founded to build two platforms to provide K-12 education services through partner schools:
- Content & EdTech – core educational solutions
- Digital Platform – Partner school administrative integration
Management is headed by Chairman Mr. Rodrigo Calvo Galindo, who was previously Administrative Associate Dean at the University of Cuiaba and has held a number of management positions at various educational institutions in the past 28 years.
5.) AlloVIR – Expected valuation of the company is $1.0 Billion
An affiliate of ElevateBio, AlloVir has access to the clinical, manufacturing, and commercial expertise of ElevateBio BaseCamp, a centralized cell and gene therapy manufacturing facility and innovation hub.
Rounding out the list are AlloVIR ALVR, , a viral disease biotech planning to raise $251 million at a $1.0 billion market cap
It’s mission is to transform the lives of patients with T cell deficiencies who are at risk for, or suffering from, devastating and life-threatening viral infections and diseases.
6.) Fathom Holdings – Expected valuation of the company is unknown
Cloud-based brokerage Fathom Holdings, which charges agents a flat fee per deal, wants to raise $14 million through a planned public offering.
The 10-year-old company, which has more than 3,600 agents nationwide, filed a registration statement recently with the Securities and Exchange Commission.
Fathom’s S-1 filing shows it has experienced revenue growth since 2017, but has also seen a streak of net losses. And while its agent base has grown substantially, the firm acknowledged its model of taking a flat fee per deal an agent makes is a value proposition that is “not typical in real estate.” Fathom previously announced its intention to become a public company.
7.) Geodeker -Expected valuation of the company is $58 Million
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction’s life cycle although it may also use other technologies such as e-mail. Typical e-commerce transactions include the purchase of online books (such as Amazon) and music purchases (music download in the form of digital distribution such as iTunes Store), and to a less extent, customized/personalized online liquor store inventory services.
Geodeker is an e-commerce platform for appliances and home goods planning to raise $10 million at a $58 million valuation
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