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The U.S. initial public offering market is expected to see 17 deals come to market this week, as issuers rush to get in ahead of the July 4 weekend which is typically followed by a lull as bankers and traders take time away from their desks.
The market has been busy in the second quarter and was the most active one since 2000, according to Renaissance Capital, a provider of institutional research and IPO ETFs.
By far the biggest deal of the week is that of Chinese ride-sharing company DiDi Global
DIDI,
which could become the second-biggest IPO of the year if it prices at the high end of its proposed range.
DiDi is planning to sell 288 million American Depositary Shares at $13 to $14 each with four ADS equal to one Class A share. The company would raise $4 billion at the top of that range, placing it second after Korean e-commerce platform Coupang
CPNG,
which raised $4.6 billion in its IPO in March.
DiDi will have a valuation of more than $67 billion, according to Renaissance Capital.
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“The unprofitable company saw revenue more than double in the 1Q21 as its business recovered post-pandemic,” Renaissance wrote in commentary. “It has a large accumulated deficit, and has been probed by China’s regulator for antitrust violations. New and existing investors intend to purchase $1.3 billion of the IPO.”
DiDi has applied to list on the New York Stock Exchange under the ticker “DIDI.” There are 20 banks underwriting the deal, led by Goldman Sachs, Morgan Stanley and JP Morgan.
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In its IPO documents, the company says it’s the world’s biggest mobility technology platform with 493 million annual active users in the 12 months through the first quarter of 2021 with a presence in 16 counties and nearly 4,000 cities, counties and towns. Proceeds of the deal will be used to invest in tech abilities, to grow its presence in select markets outside China and to introduce new products.
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The second-biggest deal of the week is expected to be AI-powered cybersecurity platform SentinelOne
S,
which is offering 32 million shares priced at $31 to $32 each. The company would raise 1.024 billion at the top of that range. With 253 million Class A and class B shares expected to be outstanding once the deal closes, SentinelOne will have a valuation of more than $8 billion.
There are 15 banks underwriting the deal, led by Morgan Stanley and Goldman Sachs. Proceeds will be used for working capital and other general corporate purposes. The company has applied to list on the New York Stock Exchange under the ticker “S,” the former ticker of now-bankrupt department-store chain Sears.
“Cyberattacks have become the output of military-grade, highly resourced, and automated nation-state and cybercrime operations,” the company says in its filing documents. “We envisioned a revolutionary data and artificial intelligence, or AI, paradigm where technology alone could autonomously prevent, detect, and respond to cyberattacks. It is time to fight machine with machine.”
The next biggest deal comes from D-Market Electronic Services & Trading
HEPS,
a Turkish e-commerce platform with plans to raise $681 million at a $3.9 billion market cap, according to Renaissance.
Doughnut maker Krispy Kreme
DNUT,
is expected to raise $600 million at a $3.8 billion market cap, returning to the markets after JAB Holdings Co., a German conglomerate based in Luxembourg, took the company private in a $1.35 billion deal in May 2016. Krispy Kreme was a public company from 2000 to 2016.
There are 19 underwriters on the IPO with J.P. Morgan, Morgan Stanley, BofA Securities and Citigroup the lead book-running managers. Krispy Kreme expects to trade on the Nasdaq under the ticker “DNUT.”
The company intends to use the proceeds from the offering to pay outstanding debt and for general business purposes.
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Other deals of note include:
• Intapp Inc.
INTA,
a cloud-based software provider for the professional and financial services industries, is aiming to raise up to $294 million by selling 10.5 million shares at $25 to $28 each.
The company has applied to list on Nasdaq under the ticker “INTA.” There are eight banks underwriting the deal, led by JP Morgan, BofA Securities and Credit Suisse. Proceeds will be used to repay debt and for general corporate purposes, including potential acquisitions.
• Xometry Inc.
XMTR,
a AI-driven marketplace for on-demand manufacturing, plans to offer 6.9 million shares priced at $38 to $42 each at a valuation of up to $1.5 billion. The company has applied to list on Nasdaq under the ticker “XMTR.”
• Torrid Holdings
CURV,
a plus-size women’s apparel brand that sells directly to consumers, is aiming to raise up to $156 million at a $2.1 billion market cap, according to Renaissance.
The company has applied to list on the New York Stock Exchange under the ticker “CURV.” There are eight banks underwriting the deal, led by Morgan Stanley, BofA Securities, Goldman Sachs and Jefferies. Proceeds of the deal will go to the selling shareholders.
• AMTD Digital
HKD,
, a Hong Kong–based digital financial services company seeking to raise $120 million at a $1.4 billion market cap. That deal was expected to go last week.
The Renaissance IPO ETF
IPO,
was up 1.1% Monday and has gained 3.3% in the year to date, while the S&P 500
SPX,
has gained 14%.
