The U.S. initial public offering market is bracing for what would be the busiest week of the year so far – if all 19 listed deals go through.
That might not happen, after a massive selloff on Monday that sent the Dow Jones Industrial Average DJIA,
down 900 points amid growing concerns over the rapidly spreading delta variant of COVID-19 and tensions between the United States and China.
The market was also likely rocked by performance last week, which saw about half of the 13 listed companies trading below their issue price, according to Bill Smith, managing director and co-founder of Renaissance Capital, a provider of institutional research and IPO exchange. negotiated funds.
“Times are tough in the IPO boom town,” Smith wrote in a comment, adding that in addition to the deals that were negotiated, two more were postponed.
âThe reason: poor secondary market returns from recent IPOs. Nobody gets a free pass when that number goes negative, âSmith said.
The IPO of the Renaissance IPO ETF,
has fallen 6% year-to-date, underperforming the S&P 500 SPX,
which gained about 13%.
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The biggest deal this week is expected to be from Ryan Specialty Group RYAN,
an insurance brokerage firm aiming to raise up to $ 1.4 billion at a valuation of $ 6.1 billion. The company has applied to be listed on the New York Stock Exchange under the symbol “RYAN”.
“The company assists with the placement of hard-to-place risks for retail insurance brokers, as well as the research, integration, underwriting and management of those hard-to-place risks for insurance companies. insurance, âSmith wrote.
The second largest contract concerns the hydraulic infrastructure company Core & Main CNM,
which aims to raise up to $ 802.7 million for a valuation of $ 5.2 billion. The company also plans to list on the NYSE under the symbol “CNM”. Goldman Sachs, Credit Suisse and JP Morgan are the main underwriters of a syndicate of 16 banks.
Paycor HCM PYCR,
an Ohio-based human capital management software company, aims to raise up to $ 388.5 million at a valuation of $ 3.6 billion. The stock is expected to be listed on the Nasdaq under the symbol “PYCR”. There are 14 underwriters on the IPO, led by Goldman Sachs and JP Morgan.
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a software company that helps retailers build an e-commerce business, is expected to raise up to $ 235.9 million for a valuation of $ 3.2 billion. Class A shares are expected to be listed on the New York Stock Exchange under the ticker symbol VTEX. JP Morgan, Goldman Sachs and BofA Securities are the main underwriters.
Then come Instructure Holdings INST,
an educational company that has developed a learning management system, which aims to raise up to $ 262.5 million for a valuation of $ 2.9 billion. The company has applied to be listed on the NYSE under the symbol “INST”. Morgan Stanley, JP Morgan and Citigroup are the main underwriters of a syndicate of 14 banks.
Other great offers include:
â¢ Zevia PBC ZVIA,
a beverage company that makes calorie-free, sugar-free drinks with âcleanâ ingredients. The Encino, California-based company plans to list the Class A shares on the New York Stock Exchange under the symbol “ZVIA”.
Zevia plans to offer 14.3 million shares at $ 13 to $ 15 each. That would value the company at $ 544.5 million at the high end of the range. Goldman Sachs & Co. LLC, BofA Securities and Morgan Stanley are the main underwriters in a syndicate of six banks. The company plans to use the proceeds of the IPO for working capital and other general corporate purposes.
See now: Zevia IPO: 5 things to know about the zero-calorie drink company before it goes public
â¢ Outbrain, a profitable New York-based online content recommendation company, plans to raise up to $ 208 million for a possible valuation of up to $ 1.39 billion. The stock is expected to be listed on the Nasdaq under the symbol “OB”. Citigroup, Jefferies, Barclays and Evercore ISI run a group of seven underwriters.
â¢ CS Disco Inc. LAW,
Texas-based provider of legal document review and eDiscovery services to law firms, expected to raise up to $ 217 million and be valued at $ 1.75 billion, after raising its price bracket offered Monday morning. The company has applied to be listed on the NYSE under the symbol “LAW”.
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â¢ Xponential Fitness XPOF,
a fitness boutique franchisor with chains such as Club Pilates, Row House, a studio chain for indoor rowing, and Stride, a treadmill-based studio chain, is looking to lift up to 212.8 million dollars for a valuation of 711 million dollars. The company is the largest boutique fitness franchisor in the United States with more than 1,750 studios.
Xpoential’s deal will follow that of F45 Training Holdings Inc. FXLV, backed by Mark Wahlberg,
that hit the market last week. The two companies go public after a year in which the fitness club industry has been battered due to COVID-19.
To find out more, don’t miss: Mark Wahlberg-backed F45 starts trading after year of steep decline for fitness clubs
The U.S. fitness club industry lost $ 20.4 billion in 2020 after a year in which the industry generated record sales of $ 35 billion, according to data provided by IHRSA , the Global Health & Fitness Association.
F45 shares were down about 10% on Monday at $ 14.53, below their IPO price of $ 16.
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