If you like hearing about all of the upcoming IPOs every week, you’ve come to the right
place. . And this is one of those weeks you won’t want to miss. Today we’ll talk about
6 companies scheduled to go public headlined by some of the community’s most anticipated
companies: Airbnb, DoorDash and C3.ai. Welcome to IPO This Week for the week of December
7th, 2020. Welcome to the Healthy, Wealthy, and Wise
channel and our weekly feature, IPO This Week where we talk about ALL the companies going
public for the upcoming seven days. As always, I want to thank everyone in the community
that comes back each and every week to stay on top of all the IPOs. And for those of you
here for the first time, my name is Kevin. And if you’re into staying on top of all
of the companies hitting the market, this channel might just be what you’re looking
for, so definitely considering subscribing and turning on the notification bell, that
way, you won’t miss any videos as soon as they come out.
I have to say that we’re gonna have a busy week here on the channel. Obviously you’re
here today watching IPO This Week where I give brief overviews and IPO details on prices
and dates on all the companies coming out. And then for some of the companies with the
most interest, I’ll post more analytical type videos for them…and this week, we’ll
have 2…one on DoorDash and one on Airbnb. And both videos will be out before they start
to trade, and you’ll know those dates because I’ll share them with you in today’s video.
And then finally, we’ll cap off this week with a live stream where we’ll review and
discuss how the big companies did when coming out, as well as talk about anything on the
community's mind…I’ll give you more details on the live stream in just a bit. But without
further ado, we have a list of companies that we need to talk about, so let’s get into
it, keeping in mind that, while this video is meant to be informative, it 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. Got it? Got it! So up first, we have:
PubMatic, ticker symbol PUBM. PubMatic is a company that provides a specialized cloud
infrastructure platform which enables real-time programmatic advertising transactions. Management
believes that their purpose-built technology and infrastructure provides superior outcomes
for both Internet content creators and advertisers. The system helps publishers and app developers
monetize their advertising placement inventory across different devices and platforms. As
per their filing, in September 2020, the platform processed approximately 134 billion ad impressions
daily, each impression within a fraction of a second.
Also in their filing, the company is profitable for 2018, 2019, and the first 9 months of
this year…not something we see very often with IPOs. Revenue continues to grow at a
solid rate and according to a research report by eMarketer cited by Pubmatic, the global
digital ad spend was approximately $325 billion in 2019 and is expected to grow to $526 billion
by 2024. Pubmatic looks to have their IPO on Tuesday with pricing expected to come within
a range of $16 to $18; trading would then begin on Wednesday. Just a quick note to anyone
new to the channel, the last column on the screen is the IPO date where the offering
is actually priced. Public trading is then almost always the next day. And while we’re
at it, please keep in mind that information on IPOs can be fluid, where pricing ranges
and trading dates often change. So if you see something that has changed since I filmed
the video, please feel free to add any updates in the comments.
Okay, let’s move on to one of the year’s big IPOs, DoorDash. The company known for
delivering food right to your door will trade under the ticker DASH who plans to raise $3.1
billion at a $34.7 billion market cap. This is a company I put up a video on the
day it filed its IPO…let me tell you, that was a fun Friday night! If you want more information
from the filing, please check out that video which I’ll link for you. And as I mentioned
earlier, I’ll have a comprehensive video on the company coming out later this week
where I’ll go over all the information we have, plus I’ll give you my own analysis
on DoorDash and whether or not I plan to invest in the company, and why or why not. So I already
have a lot of information out there and will have more coming. For today, I’ll just give
you some highlights. The company who focuses on delivering food from restaurants directly
to your home has grown substantially over the past few years and that was only super-charged
this year during the pandemic. They now have a leading 50% share of the US market for food
delivery over competitors such as GrubHub and Uber Eats. From a bottom-line perspective,
the company is still not profitable, but revenue continues to grow as more and more people
that try the service tend to keep coming back. Again, I’ll have a lot more on DoorDash
later this week, but for now, I’ll finish with letting you know that the company expects
to price their IPO within a range of $90 to $95 dollars on Tuesday, those numbers just
got raised from an initial expectation of $75 to $85. Public trading would then begin
on Wednesday.
Next up is C3.ai, ticker symbol AI. We talked a good bit about this company on last week’s
episode of IPO This Week, so you might want to check that out if you hadn’t seen it,
again, I’ll link it for you. For anyone new to C3.ai, this company provides software-as-a-service
applications that enable the rapid deployment of Artificial Intelligence applications of
extraordinary scale to enterprise customers. Their products allow customers to rapidly
design, develop, and deploy AI applications of any type, as well as offer business analysts
without data science training to rapidly perform data science tasks such as building, configuring,
and training AI models. Some of C3.ai’s bigger name customers include Shell, Koch
Industries, the US AirForce, Raytheon Technologies and AstraZeneca. According to their filing,
C3.ai reported total revenue of $156.7 million in the fiscal year ended April 30, 2020 which
was 71% higher than in fiscal year 2019. Now growth has slowed down when looking at the
first 9 months of this year compared to the first 9 months of 2019, however, much of this
seems to be directly related to the pandemic, as many companies put off making capital purchases
as their own revenues were impacted. But going forward, C3.ai sees a total addressable market
estimated to be $174 billion in 2020, growing to $271 billion in 2024, a 12% compound annual
growth rate. Adding to the excitement for tech companies from investors is the fact
that both BlackRock and Capital Research Global Investors look to buy a combined 20% of shares
in the offering, as well as Koch Industries and Microsoft intending to purchase a combined
$150 million in a concurrent private placement. I’m sure those investments will be seen
as signs of confidence in the company and should lead this company to trade higher than
where the IPO will be priced on Tuesday, which currently is within an expected price range
of $31 to $34. After that happens, trading will begin on Wednesday.
Moving on, we have hydroponics supplier Hydrofarm Holdings Group, ticker HYFM. Just to start
off with what hydroponics is, it’s the farming of plants using soilless growing media and
often artificial lighting in a controlled indoor or greenhouse environment. Hydroponics
is the primary category of controlled environment agriculture. Hydrofarm’s products are used
to grow, farm and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs
in controlled environment settings that allow their customers to control key farming variables
including temperature, humidity, CO2, light intensity spectrum, nutrient concentration
and pH. This allows growers to be more efficient with physical space, water and resources,
while enjoying year-round and more rapid grow cycles as well as more predictable and abundant
grow yields, when compared to other traditional growing methods. The company believes that
a majority of the equipment and supplies they sell to customers is ultimately purchased
by participants in the cannabis industry, though they state they don’t sell to participants
in the cannabis industry directly as more than 80% of its products are sold to specialty
hydroponic retailers. I’ve had many discussions within the comments about the cannabis industry,
and my concerns about investing in a product that isn’t patented by any one company.
However, I do think there are opportunities for the companies that support the industry,
so this might be one to look further into. Sales are growing at a good rate, and for
the first 9 months of this year, the company is showing a net profit, so this could be
a company to consider if you want some exposure to the cannabis industry without buying the
companies that actually grow the crop. Hydrofarm’s IPO is set for Wednesday with pricing expected
to come within a range of $14 to $16. Trading would then begin on Thursday.
Next up we have Airbnb, the name that is synonymous with vacation rentals. Like DoorDash, I’ve
talked about Airbnb in the past, but even more so…so if you’re interested in seeing
information on their IPO filing or their valuation and trading history on the private markets,
you can check out a playlist that I have on the company and you can pick the videos that
you’re more interested in; I’ll link the playlist in the description. And also like
DoorDash, I’ll put out a comprehensive video with more analysis and my own thoughts on
the company before it starts trading, so keep an eye out for it. For today, let’s just
hit some highlights and some details of the IPO. First of all, the company will trade
under the ticker ABNB and plans to raise $2.4 billion at a $31.8 billion market cap. The
company is a true market disruptor that has put the traditional hotel industry on notice.
As of September 30th, the company reports having had over 4 million hosts around the
world in over 220 countries and having 5.6 million active listings. As far as guests’
statistics, for 2019, 54 million active bookers worldwide booked 327 million nights and experiences
on their platform, with 69% of their revenue being generated by stays from repeat guests.
The model has caught on with frequent travelers, however, the pandemic threw a big monkey wrench
into its operations earlier this year. Business has rebounded high off the lows, but still
not reaching booking levels where it was before the virus struck. While the short term could
be a little rocky for the company, the company looks to get back on track completely once
the pandemic subsides. Again, I’ll have a lot more for you on Airbnb right before
it starts to trade, so stay tuned to the channel. Right now, we expect the IPO to happen on
Wednesday with pricing expected to come within a range of $44 to $50. We then expect trading
to begin on Thursday. And this is where I want to share with you details on our next
live stream. After the company finishes up its first day of trading, we’ll schedule
our live stream for Thursday, December 10th at 7 PM eastern. We’ll discuss how Airbnb
performed on Day 1 and we’ll also talk about DoorDash, C3.ai and anything else you guys
want to talk about. So definitely mark your calendars…I’m looking forward to talking
with you guys in real-time, so I hope you can make it.
But we’re not done yet with this week’s slate of IPOs, as last but not least, we have
Certara, ticker CERT, who plans to raise $500 million at a $3.1 billion market cap. This
company was founded to accelerate medicines to patients using biosimulation software and
technology to transform traditional drug discovery and development. As to what Biosimulation
is, the technology is used to conduct virtual trials using virtual patients to predict how
drugs behave in different individuals. Biopharmaceutical companies use Certara’s proprietary biosimulation
software throughout drug discovery and development to inform critical decisions that not only
save significant time and money but also advance drug safety and efficacy, improving millions
of lives each year. Its software is used by more than 1,600 biopharmas and academic institutions
across 60 countries, including the top 35 biopharmas by research and development spend
in 2019. From 2018 to 2019, revenue increased by 27%
to $208.5 million, and their net loss decreased by 73% to $8.9 million; for the first 9 months
of the year, the company is showing net income of just over $5 million.
Looking forward, the company sees a current total addressable market for their solutions
of an estimated $10 billion today that is expected to grow at a compound annual growth
rate of between 12 to 15% annually over the next five to seven years.
Certara is set for their IPO to happen on Thursday with pricing expected within a range
of $19 to $22. Trading would then begin on Friday.
Okay so that’s the total list of companies coming out this week, it’s not a big list,
but it looks like a list of very solid companies that just happen to include a couple of household
names. It really should be an interesting week watching these companies come out. Let
me know if you’re looking to jump into one or more of these IPOs in the comment, I’m
always interested in hearing what you’re thinking. And then going forward, the calendar
will stay hot as we are still expecting to see IPOs for Wish, Affirm and Roblox before
the year ends. For those of us that enjoy looking at IPOs, this is definitely going
to be a December to remember! Alright…moving on to companies with locked
up shares expiring, we have quite a few this week, eight in fact. First for Monday, we
have Vroom (VRM) and UCloudlink (UCL). And then Tuesday we have half of the list, which
includes Lantern Pharma (LTRN), Generation Bio (GBIO), The AZEK Company (AZEK), and Avidity
Biosciences (RNA). And then closing out the lock up expirations for the week, we have
Vaxcyte (PCVX) and Burning Rock Biotech (BNR). Okay, so there you have it. Another episode
of IPO This Week in the books. If you enjoyed the video and want to see more videos like
this, please like it, comment on it, and share with your friends and on any of your social
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subscribe button. And with that, I’ll wish you a good week of trading….thank you for
watching, and until next time, have a great day!