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Investment Opportunities

4 Recent IPOs to Kick Off 2020

Initial public offerings (IPOs) often come from fast-growing, young startups. Their growth potential is exciting. And this pulls in new investors. Although, tracking them down can be challenging. That’s why I’ve put together this list of four recent IPOs.

Below, you’ll find each company with a description, sector and pricing information. It’s a good place to start your research before investing. Let’s take a look…

Top 4 Recent IPOs

Four recent IPOs kicked off the year 2020.

I-Mab (Nasdaq: IMAB)

Sector: Healthcare
Offer Price: $14.00
1st Day Close: $12.50

I-Mab is a biopharmaceutical company. Its goal is to develop medicine for cancer and autoimmune diseases. Although based in China, the company hopes to revolutionize medicine around the world. I-Mab was founded in 2016 and is already a top biotech company. Currently, it’s running trials in both China and the U.S. But expect the number of trials to grow in 2020. You can learn more about I-Mab on its website.

On January 17, I-Mab went public with about 7.4 million shares. Underwriters also have an over-allotment option to purchase up to just over 1.1 million more. It has until the 30-day period ends to decide. If all the shares are sold, including the additional ones, the total proceeds will be over $119 million.

Lizhi (Nasdaq: LIZI)

Sector: Technology
Offer Price: $11.00
1st Day Close: $11.63

Lizhi is one of the top user-generated content audio platforms and communities in China. Its goal is to give everyone the ability to show their vocal talent. It supports the creation and sharing of audio content with its app, Lizhi. The company offers a range of services from live-stream podcasts to social entertainment. Lizhi envisions an audio community where people can connect across the world.

Lizhi opened trading with 4.1 million shares. The offer size is about $45.1 million if the underwriters don’t opt for overallotment. The overallotment option offers up to 615,000 more shares.

Phoenix Tree Holdings Limited (NYSE: DNK)

Sector: Technology
Offer Price: $13.50
1st Day Closing: $13.00

Phoenix Tree Holdings started in 2015 as Danke. Its goal is to redefine the residential rental market using technology. It operates in 13 cities in China, with over 400,000 apartment units. The platform is online, and most of its revenue comes from rent and service fees. Phoenix Tree Holdings feels its technology gives it an advantage to dominate China’s growing residential market.

The IPO launched with 9.6 million shares. And underwriters can purchase up to an additional 1.44 million. The total gross proceeds will be more than $129 million.

Velocity Financial Inc. (NYSE: VEL)

Sector: Financial
Offer Price: $13.00
1st Day Close: $13.51

Velocity Financial is a real estate finance company. It originates and manages real estate loans. Operating since 2004, Velocity has built a network of mortgage brokers across the U.S. This gives it good geographical reach. Its customized loan technology also helps provide low-cost financing for customers. The company aims to grow by building more loyalty with customers and mortgage brokers, while increasing brand awareness.

Velocity’s recent IPO opened with 7.25 million shares. The underwriters can purchase an additional 1 million shares within the 30-day overallotment period. The goal is to raise $94 million.

If you’re interested in learning how to invest in an IPO, head over to How to Buy IPO Stock. It’s an easy process. And don’t forget to sign up for our free e-letter below! You’ll get lots of useful investment information and ideas.

 


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