Some weeks, you have some big name companies coming out…and then others, well…you don’t.
This is one of those weeks without a big name on the list, but the big names don’t always
have the best performance…sometimes you have to dig to find that diamond in the rough.
Is there one of those diamonds this week?…I don’t know, but if you don’t want to risk
missing out on one, you better stay tuned! Welcome to the latest episode of IPO This
Week for the week of January 18th where today we’ll talk about all the companies going
public for the week. I want to start off by thanking everyone in the community that helps
make this channel what it is…I really appreciate you watching the videos, pushing that like
button, and adding a lot of great thoughts and information to the discussion through
your comments. I was glad that many of you were able to jump on the completely unplanned
live stream I had on Friday and I really enjoyed answering a lot of your questions…sometimes
I plan live streams and other times I just make a spur of the moment decision to have
one so if definitely pays to have your notification button on. And another thing is that I’m
now posting on Instagram so definitely add me on there as another way to keep track when
I decide to go live on a whim the next time. Now when you can’t make them live, I do
put up the replay so you can still check in to see what everyone in the community is talking
about, so if you missed last Friday’s and you want to check it out, you still can.
Now after last week’s bonanza of big named companies that went public, this week lets
us catch our breath a little bit. Right now at the time of me putting this together, we
only have 4 companies to talk about, so this’ll be a shorter episode..hopefully short and
sweet, right? After I give you an introduction of these upcoming IPOs, I’ll then talk about
6 companies with expirations of locked up shares for those of you interested in hearing
about them. But first let’s kick it off with the lone
US company on the list Dream Finders Homes, ticker DFH, who plans
to raise $130 million at a $1.2 billion market cap. The company designs, builds and sells
homes in high growth markets, including Jacksonville, Orlando, Denver, the Washington D.C. metro
area and Austin, and also recently entered Charlotte and Raleigh by way of an acquisition.
They focus on building single-family entry-level, and then first and second-time move-up homes.
To give you an idea of what their houses go for, the average price for each house sold
in the first 9 months of last year was $365,843. Dream Finders also offers title insurance
and mortgage banking solutions, as well as looks to continue to grow into new markets
using a strategy of acquiring other housing companies.
The company is reporting increased revenues from $490.9 million for the nine months ended
September 30, 2019 to $672.7 million for the nine months ended September 30, 2020. And
when considering their acquisition of H&H homes which brought them into North Carolina
in October, that number would grow to $843.6 million in that time same 9 month period.
And even considering the impact of the pandemic, the number of houses sold in that time frame
was about 50% higher than in the first 9 month of 2019, and the cancellation rate was actually
lower for 2020. Right now, the Dream Finders IPO is set to
happen on Wednesday with pricing expected to come within a range of $12 to $15. DFH
stock would then begin trading on Thursday the 21st.
Next up we move over to Germany for MYT Netherlands who plans to raise $266 million at a $1.5
billion market cap. The company might be more familiar under the name Mytheresa, which is
a leading luxury e-commerce platform for the global luxury fashion consumer, offering clothing,
shoes and accessories from multiple luxury brands. The company launched online in 2006,
and as of 2020, reached customers in 133 countries with over 1 million orders.
Mytheresa has approximately 522,000 active users as of September which was a growth of
24% from September of 2019. Revenue has grown consistently over the past 3 years and the
company is operating at a profit. MYT Netherlands IPO is also set for Wednesday
with pricing expected to come within a range of $16 to $18. The stock would then begin
trading under the ticker MYTE on Thursday. Moving on in the world, we head to China,
where we have RLX Technology who plans to raise $1 billion at a $14 billion market cap.
RLX Technology sells e-cigarettes and related accessories through over 100,000 retail outlets
throughout China. RLX ranks #1 for e-cigarrette brand awareness in China and the company is
also the No.1 branded e-vapor company in China, with RLX capturing 62.6% of the market share
of closed-system e-vapor products in terms of retail sales value in the nine months ended
Sept. 30, 2020. According to a market research report cited
by the company, the e-vapor market in China amounted to 1.5 billion US dollars in 2019
by retail sales value, and is expected to reach $11.3 billion in US dollars in 2023,
representing a Compounded annual growth rate of 65.9%.
The company is also reporting profitability with net income of $7 US million for the year
ended December 31, 2019, which has grown to $16 million for the nine months ended September
30, 2020. The RLX Technology IPO is currently set for
Thursday with pricing expected to come within a range of $8 to $10. RLX stock would then
begin trading under the ticker, what else, RLX on Friday.
And last, but not least we get back to the western hemisphere for Patria Investments,
an established Brazilian private equity firm that has been in existence for over 30 years.
With an investment portfolio of over 55 companies and having raised over $8.7 billion since
2015, Patria Investments is one of the leading private equity firms in Brazil. As of September
30, 2020, they had assets under management of US$12.7 billion in 16 active funds. Looking
back over the past 10 years, their assets under management key metric had a compounded
annual growth rate of 20% per year. Patria plans to raise $400 million at a $2.0 billion
market cap with the majority of the proceeds going to fund capital commitments to existing
and new funds, as well as to fund the expansion of their operations through acquisitions of
asset managers, portfolios and distribution channels. Something you might find attractive
is that Patria plans to pay a dividend to shareholders representing approximately 85%
of its distributable earnings. The IPO is expected on Thursday with pricing anticipated
to come within a range of $14 to $16. Patria stock would then begin trading on Friday under
the ticker PAX.
So there’s your list for this week as of right now…are any of these companies ones
you might be interested in? Let us know in the comments. Today, I just gave you overviews
on these IPOs, but when there is a lot of interest in a company, I’ll often make more
dedicated videos on them, so don’t be shy in sharing your picks.
Alright…so let’s move on to lock up expirations, something we consider and talk a lot about
on the channel. For this week, we have Jamf on Monday. And then on Tuesday we have
Montrose Environmental Group (MEG). On Wednesday, we have 4 companies: Annexon (ANNX), Inozyme
Pharma (INZY), iTeos Therapeutics (ITOS), and Nurix Therapeutics (NRIX).
Not a lot of big names coming out this week, but you never know which one could turn out
to be that hidden gem; so definitely hope you keep checking in every week. I hope you
enjoyed the video, and if you did, please hit that like button, share with your friends….and
if you haven’t subscribed to the channel yet, here’s your formal invitation, we’d
love to have you become a part of our community, it’s totally free. And with that, I’ll
wish you another good week of trading… thank you for watching and, until next time, have
a great day!