Just like every week, I’m here giving you an overview of the upcoming week’s scheduled
IPOs. Today, this video will give you an introduction to the 6 companies scheduled to go public
for the week of November 16th, 2020.
I’d like to welcome back all of our subscribers to Healthy, Wealthy and Wise and our weekly
featured show, IPO This Week. And for anyone new to the channel, my name is Kevin, and
every week, I give an introduction on the companies that are going public, plus I also
share upcoming lockup expiration dates... which might give you another opportunity to
get into that company that might've been too pricey for you that first day of trading.
I’m here because, like you, I’m interested in investing and always looking for ways to
do it better. And I’m also here to try and give you the information without the hype
in trying to tell you what to buy or not buy…my hope is that the information I provide helps
you make your own decision, the decision that's best for you. If that sounds good to you,
I hope you consider subscribing and becoming a part of a community where we can all share
our thoughts and opinions together. Let’s jump into the IPO world, where the
big news isn’t the companies actually coming out this week…which doesn’t mean there
isn’t some good ones, it’s just that everyone has DoorDash and Airbnb on their mind. Last
week Airbnb was all set to show us their IPO filing, but then put it on hold, allowing
DoorDash to swoop on in and deliver their filing on Friday. Yep, I said it, DoorDash
delivered...you guys know I can’t help myself sometimes! Anyway, as soon as it came out,
I got to work putting out a video that went over the filing..it came out Friday night,
so if you missed it, definitely check it out…I’ll link it for you. As we get closer to their
IPO actually happening, I’ll have more videos that provide more analysis on the company,
similar to what we did with Snowflake and Palantir. And then back to Airbnb, we do expect
their filing to come out this week, and when it does, I’ll get a video up on them, as
well, and that video will give you the highlights of their filing…so definitely turn those
notification bells on so you don’t miss any of this upcoming information.
But like I said, we got 6 companies coming out this week... that might be flying under
the radar. Today, I’ll give you an overview of each one by pulling information from a
variety of resources so you don’t miss what’s coming out. Upfront, please know that while
this video, and really all of my videos are meant to be informative, they should not be
seen as a recommendation for you to take any action on the companies covered—you should
always do your own research or consult with your own financial advisor when making any
investment decision.
Let’s get started in real estate with a REIT named Aspire Real Estate Investors, ticker
ASPI. The company was founded to purchase an initial portfolio of nine multifamily projects,
as well as to develop or acquire additional similar projects. Their main focus is on acquiring
existing income-producing affordable and workforce multifamily properties, with up to 30% of
its portfolio being properties that don’t require significant work to be done to update
them. Of the nine initial properties, six are located in what they call Opportunity
Zones, which are economically distressed areas where new investments meeting certain conditions
are eligible for preferential tax treatment. From their filing, the company has had net
losses over the past couple of years, but over the first 6 months of this year, they
have shown a net profit. Revenue growth has been positive over the past couple of years,
but not what I would call strong or stellar. They could benefit from the current economic
conditions as low interest rates could help fuel the company’s expansion plans… and
maybe faster than initially thought. Aspire looks to have their IPO priced on Monday at
$20, with trading then beginning on Tuesday. Next up is maybe the most intriguing company
on this week’s slate and that is NeoGames , ticker NGMS. The company is an online lottery
and gaming provider that plans to raise $72 million with its IPO. The company provides
technology and services to state lotteries and other lottery operators in both Europe
and North America. Its focus is tech-driven, as they use an ilottery platform, which is
a system that provides for the distribution of lottery products through a variety of channels
that includes web applications and mobile applications, as well as social media platforms
that allow players to interface through a portal for the purpose of obtaining lottery
products. The company cited a research report in their
filing that says iLottery had a compounded annual growth rate of 24% from 2003 to 2019.
And then more recently, the numbers show that the pandemic didn’t hurt them at all, as
its monthly active players were up 70% year over year in the first 9 months of 2020. Which
probably is why the company is reporting fast growing revenue and is now showing a net profit
for those first 9 months of this year. The company is currently operating in 4 states
and looking to expand. And the opportunity could be there, because while lottery is offered
in 45 states and the District of Columbia, ilottery is only currently offered in nine
states and management believes that many more states will begin to offer iLottery, and when
they do, they'll be able to win new contracts. NeoGames looks to hold their IPO on Wednesday
with pricing expected to come within a range of $14 to $16. Trading would then begin on
Thursday. Moving on we have Maravai LifeSciences ticker
MRVI. Maravai provides critical products to enable development of drugs, diagnostics,
novel vaccines, and support research on human diseases. You can sort of see why this might
be the year for them to go public, right? Their products serve to provide nucleic acids
for diagnostic and therapeutic applications, as well as to detect impurities during the
production of biopharmaceutical products, and then also for protein expression detection
in tissues of various species. They sell their products and services to more than 5,000 customers,
including the top 20 biopharmaceutical companies around the world. Not surprisingly, the company
has seen increased demand in recent months due to the pandemic and is showing strong
revenue growth over the first 9 months of this year as compared to the same period last
year, leading them to also show an operating profit. Maravai’s IPO is set for Thursday
with pricing anticipated to come in between 24 and 27 dollars; trading then should start
on Friday.
Fourth on the list is lab service provider Sotera Health, ticker SHC who plans to raise
$1.0 billion at a $6.0 billion market cap. Sotera provides sterilization, testing, and
advisory services to research labs in the medical device and pharmaceutical industries.
The company provides services to more than 40 of the top 50 medical device companies
and 8 of the top 10 global pharmaceuticals by revenue. Within their scope, the company
has 50 sterilization facilities and 13 testing labs, which are located near their major healthcare
provider customers. This is another company on the list that is showing a profit for the
first 9 months of the year, although they had net losses in 2018 and 2019. Sotera is
set to price their IPO on Thursday within a range of 20 to 23 dollars with trading then
beginning on Friday. Next we have a cybersecurity solutions provider
named Telos, ticker TLS. The company was founded to develop cybersecurity and information systems,
including secure networks for federal and state government entities as well as for large
enterprise customers. Some of their customers outside of government include heavyweights
such as Amazon, Microsoft, Salesforce and Citigroup. Telos reports that their customer
turnover is low and that approximately 85% of their revenue is recurring. Financials
look good for revenue and the company is operating at a profit for the first 6 months of this
year, up from a net loss for all of 2019. This is another company looking to price their
IPO on Thursday, with an expectation of shares being priced between 16 and 18 dollars. After
that, trading should start on Friday. And last on the list for this week, we head
to China for Yatsen, ticker YSG. This company makes cosmetics and skincare products under
the brands, the Perfect Diary, Little Ondine and Abby’s Choice in China. Those three
brands were reported to be purchased by over 23 million customers last year. The company
markets and sells their products directly to Chinese consumers on major online platforms,
as well as by way of a fast-growing retail store network that now includes over 200 stores.
And that’s up from just 40 stores 9 months earlier. And revenue tracks that growth going
upward, but expenses have as well. The company’s revenue is higher than the cost to achieve
the revenue, so they are operating a gross profit, although the company’s overall net
still shows a loss. But they’ve only been in existence since 2016 so that’s very understandable
considering at the scale their growing out. Like the last 3 companies we talked about,
Yatsen has their IPO set for Thursday with pricing anticipated to come within a range
of $8.50 to $10.50. Public trading will then begin on Friday.
So those are the 6 new companies that we’re expecting to come out this week. Keep in mind
that this information with IPOs is fluid, as dates and prices often change.
Moving on, for those of you who have an IPO trading strategy looking at lockup expirations,
this week we have: SelectQuote (SLQT) on November 16th, as well
as Inari Medical (NARI), whose locked up shares expire on Tuesday the 17th.
And then we also have two notable quiet periods ending this week that I want to mention and
they are Datto Holding (MSP) and McAfee (MCFE). Both have their quiet periods ending on Monday
the 16th. So there you go, what are you thinking about
for any of these companies? Are you looking to get into any of them? Let us know in the
comments. And if you see something that needs updated from the video, please feel free to
add that in the comments as well to update our community…I want my subscribers to get
information that’s up to date. And remember we’re awaiting Airbnb’s filing
to be dropped this week, so stay tuned to the channel so I can give you what I feel
are the highlights of what’s in the filing. And once again, if you’re new here and wondering
how to join the community, it’s super easy… you join by simply subscribing to the channel…
you just gotta hit that little red subscribe button. So we’ll wrap it here for now. Thank
you for watching, and until next time, have a great day!