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Investment Opportunities

Top Recent IPOs: New Investment Opportunities

Knowing about recent IPOs is a great way to stay up to date on the IPO market. Initial public offerings can often provide great investment opportunities – but not always. Below is a short list of some of the top IPOs by month.

Recent IPOs: September

Outset Medical was one of the top recent IPOs for September.

Outset Medical (Nasdaq: OM)

Outset is a medical technology company. It focuses on kidney diseases and aims to reduce the cost and complex nature of dialysis. Outset believes its system Tablo will allow dialysis to be delivered anywhere, anytime and by anyone, according to the company’s prospectus. The system only requires an outlet and water to be used. In 2020, Outset estimates kidney failure will affect 810,000 people in the U.S. The company also claims its addressable market is $2.2 billion in the care setting and $8.9 billion in the home setting.

Outset saw impressive revenue growth since 2018. It went from $1.8 million in 2018 to $13.8 million in 2019 for a year-over-year growth of 686%. And for the first six months of 2020, Outset already surpassed its 2019 revenue. The company reported $15.6 million June 30, 2020 compared to $5.1 million for the first six months of 2019. That’s a growth of just over 300%. However, Outset saw a large increase in cost of product revenue as well. Net loss increased from $6.1 million in 2018 to $17.8 million in 2019. And although the company’s loss for 2020 is $8.3 million compared to $9.7 million in 2019, Outset has yet to make a profit.

The company filed to go public on August 21, 2020. Outset stock began trading September 14, 2020 at $27 a share. The deal offered 8.9 million shares to raise $242 million. Outset’s market cap is $1.2 billion.

You can look at Outset Medical’s prospectus here.

First Day Return: 124.7%

Snowflake (NYSE: SNOW)

Snowflake is a data warehousing company. It offers cloud-based data storage and analytics services. Snowflake’s services are available on Amazon S3, Microsoft Azure and Google Cloud Platform. The company’s platform allows customers to discover, exchange and securely share data. In February, the company had a value of $12.4 billion.

Snowflake’s fiscal year ended January 31, so its prospectus provides financial info for the years 2019 and 2020. Company revenue grew from $96.7 million to $264.8 million for a growth rate of 174%. But Snowflake also saw an increase in net loss. It went from $178 million to $348.5 million. Snowflake has yet to see profit.

The company filed on August 24, 2020 for a highly anticipated IPO. The offer price was $120. But on September 16, 2020, shares started trading for about $250 before coming down. Snowflake offered 28 million shares for a deal size of nearly $3.4 billion. It has a market cap of $42.3 billion.

You can look at Snowflake’s prospectus here.

First Day Return: 111.6%

PMV Pharmaceuticals

PMV is an early stage biotech company. It focuses on developing targeted therapies for cancer. The company targets p53 mutations, a tumor suppressor protein, and aims to correct it. Mutant p53 proteins are found in about half of all cancers. PMV plans to start a Phase ½ clinical trial by the end of 2020.

The company has no revenue reported in its financial data. It has increasing net loss as a result of growing operating expenses. In 2018, net loss was $17.5 million. But this grew 45% to $25.4 million in 2019. And for the six months ended June 30, 2020, net loss was $15.2 million. That’s up 25.5% from the same time period in 2019.

PMV filed on September 4, 2020. It was priced at $18 a share on September 24 and started trading the next day. PMV offered about 11.8 million shares to raise $212 million. This gave the company a market cap of $836 million.

You can look at PMV Pharmaceutical’s prospectus here.

First Day Return: 108.4%

Laird Superfood (NYSE: LSF)

Laird Superfood is a consumer products platform. It focuses on manufacturing and marketing plant-based and functional foods. The company’s first product was the Original Superfood Creamer in 2015. It’s a plant-based recipe of coconut and sea algae. According to the company, its market is the U.S. Natural, Organic and Functional Food and Beverages which had sales of $152 billion in 2019.

Laird’s reported revenue increased since 2018. It went from $8.3 million to $13.1 million in 2019 for a growth of 58%. It also increased for the six months ended June 30, 2020 compared to 2019. It grew 104% from $5.5 million to $11.1 million. But Laird hasn’t reported profit yet. It had net loss of $8.46 million in 2018 and $8.5 million in 2019. And for the first six month of 2020, net loss was $5 million compared to $4 million in 2019.

Laird filed to go public on August 31, 2020. The company priced its shares at $22, offering 2.6 million for a deal of $58 million. Shares started trading on September 23, 2020. The offering gave Laird a market cap of $192 million.

You can look at Laird Superfood’s prospectus here.

First Day Return: 85.5%

COMPASS Pathways (Nasdaq: CMPS)

COMPASS is a mental health care company. It’s dedicated to innovating mental health treatments for patients who can’t benefit from existing mental therapies and treatments. The company’s main focus is treatment-resistant depression. COMPASS believes it can use psilocybin, a naturally occurring psychedelic prodrug found in certain species of mushrooms. The company completed a Phase I clinical trial in 2019 and is currently conducting a Phase IIB trial. The company plans to report data from the second trial in late 2021.

According to the financial data provided by COMPASS in its prospectus, the company has no revenue to date. It does have increasing R&D expenses, going from $8.9 million in 2018 to $12.6 million in 2019. And for the six months ended June 30, 2020, R&D expenses increase by 146% from $4.9 million in 2019 to $12 million in 2020. As a result of growing expenses, COMPASS’ net loss also increased. For the six months, net loss increased from $6.3 million to $24.8 million. That’s a year-over-year growth of almost 300%.

COMPASS filed with the SEC on August 28, 2020. The company priced the IPO at $17 on September 17, 2020. It offered 7.5 million shares for a deal of $128 million. The COMPASS IPO gave the company a market cap of $658 million.

You can look at COMPASS Pathways prospectus here.

First Day Return: 79.6%

Recent IPOs: August

CureVac is one of the top recent IPOs for August.

CureVac (Nasdaq: CVAC)

Dr. Ingmar Hoerr founded CureVac in 2000. It’s a biotech company located in Tübingen, Germany. CureVac uses messenger RNA (mRNA) technology that instructs human cells to produce therapeutic proteins, triggering a response from the immune system. The company uses this technology to create cancer therapies and treatments for rare diseases. CureVac started work on its first mRNA vaccine in 2011.

In 2018, CurVac reported $15.2 million in revenue. In 2019, revenue grew 35.3%, to $20.6 million. However, despite the increase in revenue, CureVac’s net loss also went up. While net loss was reported at $84.3 million in 2018, it increased to $118.2 million in 2019, a growth of 37.1%. This was largely due to a big jump in cost of sales and general and administrative (G&A) expenses.

However, it’s important to note that the financial data provided does not include information from 2020. CureVac was one of the leading companies in the race for a COVID-19 vaccine, and that will likely have an effect on the company’s 2020 financials.

In March 2020, analysts suspected CureVac would go public in order to fund its vaccine. And on July 24, 2020, the company filed with the SEC. A couple of weeks later, CureVac went public on August 13, 2020. It offered 13.3 million shares at $16 a share. The deal raised $213 million, for a market cap of $2.8 billion.

You can look at CureVac’s prospectus here.

First Day Return: 249.4%

BigCommerce (Nasdaq: BIGC)

BigCommerce is a technology company. Founded in 2009, it provides software as a service (SaaS). Its platform lets customers create and use online stores. The company focuses on ease of use, enterprise functionality and flexibility. Originally, BigCommerce marketed to small businesses. But as of June 1, 2020, the company serves almost 60,000 stores in 120 countries. BigCommerce boasts the title of the world’s second most-used SaaS platform.

BigCommerece reported a net loss of $38.9 million in 2018. That rose to $42.6 million in 2019, a growth of 9.5%. This was mainly due to increased sales and marketing spending. However, the company saw a larger increase in revenue during this time. BigCommerce reported $91.9 million in revenue for 2018. That increased by 22% in 2019, to $122.1 million. This means BigCommerce is hopefully on the path to profitability.

After confidentially filing with the SEC, BigCommerce publicly filed on July 13, 2020. It went public on August 4, 2020, offering more than nine million shares at $24 apiece. The total deal brought in $216 million. BigCommerce’s market cap is $1.8 billion.

You can look at BigCommerce’s prospectus here.

First Day Return: 201.1%

Oak Street Health (NYSE: OSH)

CEO Mike Pykosz co-founded Oak Street Health in 2012. The company builds a primary care delivery platform to address rising costs and poor outcomes. The Oak Street Platform is designed to give value-based care and is focused on Medicare patients. In Oak Street’s prospectus, the company claims its platform led to…

  • A 51% reduction in hospital admissions
  • A 42% reduction in 30-day readmission rates
  • A 51% reduction in emergency department visits.

Oak Street has a network of 54 centers in eight states. As of March 21, 2020, the company has provided care for 85,000 patients and employed 2,300 team members.

In 2018, Oak Street reported $309.6 million in revenue. That increased in 2019 to $539.9 million, a growth of 74.4%. But the company saw a large jump in expenses, including medical claims, sales and marketing costs, and G&A costs. Oak Street acknowledges that the company hasn’t turned a profit. In 2018, it had a net loss of $76 million. This number increased by 36.6% in 2019, to a net loss of $103.9 million. If Oak Street can maintain its growth, the company might see a profit in the next few years.

Oak Street Health filed to go public on July 10, 2020. On August 5, 2020, Oak Street stock launched on the NYSE. The company offered 15.6 million shares at an offer price of $21. The total deal was $328 million, giving Oak Street a market cap of $5 billion.

You can look at Oak Street Health’s prospectus here.

First Day Return: 148.2%

KE Holdings (NYSE: BEKE)

Founded in 2001, KE Holdings created Beike. Beike is the leading integrated online and offline platform for housing transactions and services in China. It deals with home sales, rentals, renovations and real estate financial solutions. In 2019, the company had more than 2.2 million transactions on its platform. As of June 30, 2020, the platform has more than 260 real estate brokerages, 42,000 stores and 456,000 agents across 103 cities in China. KE Holdings also owns Lianjia, China’s leading real estate brokerage and a part of the company’s platform.

KE Holdings reported $4.2 million in revenue for 2018. In 2019, revenue increased by 55.5%, to $6.5 million. But although the company’s revenue steadily increased over the last couple of years, KE Holdings saw a huge jump in net loss. It went from about $62,500 in 2018 to almost $308,600 in 2019. That’s a growth of 393.4%. However, the company notes that it recorded net income for the first six months of 2020.

KE Holdings filed on July 24, 2020. It went public a few weeks later, on August 12, 2020. The offer consisted of 106 million shares at a price of $20. The deal size was $2.1 billion. This gave KE Holdings a market cap of $23 billion.

You can look at KE Holdings’ prospectus here.

First Day Return: 87.2%

Kymera Therapeutics (Nasdaq: KYMR)

CEO Nelo Mainolfi co-founded Kymera Therapeutics in 2015. It’s a biopharmaceutical company that develops therapies to fight disease-causing proteins. Pegasus, the company’s platform, allows it to discover the body’s natural proteins that fight against disease-causing proteins. Kymera focuses its therapeutics on immunology-inflammation and oncology. The company plans to submit Investigational New Drug Applications in the first half of 2021 for its leading programs.

Kymera didn’t make revenue until 2019. The company reported collaboration revenue of about $3 million. But it still reported a net loss. In 2018, net loss was $21.5 million. Despite the company’s revenue, its net loss increased to $41.2 million in 2019. As a newer company, Kymera notes it has a limited operational history and may never be profitable as one of its major risks.

Kymera Therapeutics filed on July 31, 2020. It went public on August 20, 2020. The IPO contained 8.7 million shares. At a price of $20 a share, the company raised about $174 million. This gave Kymera a market cap of $938 million.

You can look at Kymera Therapeutic’s prospectus here.

First Day Return: 66.3%

Recent IPOs: July

One of the top recent IPOs is Berkeley Lights, a biotech company.

Berkeley Lights (Nasdaq: BLI)

Berkeley Lights is a biotech company. It develops and commercializes biotherapeutics. The company’s Beacon platform automates the cloning, culturing and sorting of cells from samples. This reduces both time and labor. Berkeley Lights’ platform is used by Pfizer (NYSE: PFE), Novartis (NYSE: NVS) and Teva Pharmaceuticals (NYSE: TEVA).

In 2019, total revenue was $56.7 million. That was an 81% increase from 2018, when revenue totaled $31.3 million. However, total operating expenses also increased, from $44.3 million in 2018 to $60 million in 2019. That’s a 35.5% increase. But net loss decreased from $23.3 million in 2018 to $18.3 million in 2019.

Berkeley Lights filed to go public on June 26, 2020. And Berkeley Lights stock launched on the Nasdaq on July 16, 2020. The original price range was $19 to $20. But stock started trading at $22 a share. The company offered 8.1 million shares. The offering gave Berkeley Lights a market cap of $1.5 billion.

You can look at Berkeley Lights’ prospectus here.

First Day Return: 197.5%

NCino (Nasdaq: NCNO)

NCino is a cloud-based software company. It works with financial firms, such as banks and credit unions. The company’s Bank Operating System digitizes and streamlines work. It also uses data analytics, artificial intelligence and machine learning to improve the platform.

In 2019, total revenue was $91.5 million. That was an increase of 57.4% from $58.1 million in 2018. Unfortunately, nCino’s net loss also increased. In 2018, reported net loss was $18.6 million. In 2019, that number increased by 20%, to $22.3 million.

NCino filed to IPO on June 22, 2020. It went public a few weeks later, on July 13, 2020. The company offered 8.06 million shares. The original price range was $28 to $29, but shares started trading at $31. This gave nCino a market cap of $3.04 billion.

You can look at nCino’s prospectus here.

First Day Return: 195.5%

Lemonade (NYSE: LMND)

Lemonade is an American property- and casualty-insurance company. It offers both renters and home insurance policies in the U.S. It also provides content and liability policies in Germany and the Netherlands. Lemonade is a vertically integrated company. Its goal is to digitize the industry.

In 2019, Lemonade’s total revenue was $67.3 million. That was almost three times 2018’s revenue of $22.5 million. However, with this big growth in revenue also came higher expenses. Total expenses in 2018 were $75.1 million. But in 2019, expenses increased to $175.2 million. This led to a greater net loss of $108.5 million in 2019, compared with a net loss of $52.9 million in 2018.

Lemonade filed with the SEC on June 8, 2020. Almost a month later, Lemonade stock started trading on July 1, 2020. The offer was for 11 million shares. The original price range was $26 to $28. However, stock began trading at $29 a share. The offering gave Lemonade a market cap of $1.6 billion.

You can look at Lemonade’s prospectus here.

First Day Return: 139.3%

ALX Oncology (Nasdaq: ALXO)

ALX is a clinical-stage immuno-oncology company. It helps patients by developing therapies to prevent cancer cells from using a protein to evade the immune system. The therapies use strategies to help leverage the body’s immune system. ALX hopes to advance its lead treatment, ALX148, into clinical development. It’s also working on a tumor-indicating treatment.

In 2018, ALX’s revenue was $2.1 million. That more than doubled in 2019, for a total of $4.8 million in revenue. Additionally, ALX’s net loss increased. In 2018, net loss totaled $13.7 million. But in 2019, that number increased by 40%, to $19.25 million. If ALX’s revenue can outpace its growing expenses, the company can become profitable.

ALX filed to go public on June 26, 2020, and priced a couple of weeks later, on July 16, 2020. The offering consisted of 8.5 million shares. The original price range was $15 to $17. However, ALX stock began trading at $19 per share. ALX’s market cap was $730 million.

You can look at ALX Oncology’s prospectus here.

First Day Return: 57.9%

AlloVir (Nasdaq: ALVR)

AlloVir is a clinical-stage cell therapy company. It develops T-cell therapies to treat and prevent viral diseases. AlloVir’s therapy aims to restore immunity in patients with T-cell deficiencies. Many patients with a viral disease have few if any therapy options. The company will enter its primary candidate into treatment trials in the fourth quarter of 2020.

AlloVir’s financials are unique. In 2018, the company’s revenue was $1.1 million. Then in 2019, it decreased to $165,000. However, AlloVir’s CEO explains why in the company’s prospectus:

All of our revenue has been derived from our grant agreement with the Cancer Research and Prevention Institute of Texas, or CPRIT. In November 2019, we provided CPRIT with written notice of our intent to terminate the grant, and received acknowledgement in January 2020… To date, we have not generated any revenue from product sales. If our development efforts for our product candidates and preclinical programs are successful and result in regulatory approval, we many generate revenue in the future from product sales.

As a result, AlloVir’s net loss also increased from $2.4 million in 2018 to $23.8 million in 2019.

The company filed on July 6, 2020. It went public in the same month, pricing stock on July 29, 2020. The offering consisted of 16.25 million shares, with an original price range of $16 to $18. Shares started trading at $17, the midpoint of its range. The offering gave AlloVir a market cap of $1.1 billion.

You can look at AlloVir’s prospectus here.

First Day Return: 49.4%

 

Recent IPOs: June

A Vroom IPO was confidentially filed with the SEC.

Agora (Nasdaq: API)

Agora is a China-based video, voice and live interactive streaming platform. The company’s goal is to help developers use real-time engagement to create innovative products, improve user experiences and build applications leading to the future of technology.

Agora has seen steady growth. Its 2018 sales were $44 million. And in 2019, sales were $64 million, a 48% year-over-year growth. Gross profit also increased from $31 million to $44 million, a 42% year-over-year growth.

The company filed to go public on the U.S. markets on June 5, 2020. Agora is one of the most recent IPOs, pricing on June 25 and trading on June 26. The price range was $16 to $18. However, shares started trading at $20. Agora raised $350 million, for a market cap of nearly $5 billion.

You can look at Agora’s prospectus here.

First Day Return: 152.5%

Vroom (Nasdaq: VRM)

Vroom is an online car resale service. Founded in 2013, the company is headquartered in New York City. Vroom handles the process between buyer and seller, eliminating the need for a peer-to-peer model like Craigslist. The company delivers nationwide and also offers financing through multiple banks.

In the fiscal year ended December 31, 2019, Vroom reported sales of just under $1.2 billion. This is a 39% year-over-year increase from 2018, when sales were $855 million. However, gross profit went down from $61 million in 2018 to $58 million in 2019.

Vroom confidentially filed to go public on May 18, 2020. A couple of weeks later, on June 8, the company priced its recent IPO. Originally, the price range was $18 to $20. But shares started trading at $22 a share, for a deal worth $468 million. This gave Vroom a market cap of $6.8 billion.

You can look at Vroom’s prospectus here.

First Day Return: 117.7%

Forma Therapeutics (Nasdaq: FMTX)

Forma Therapeutics is a biopharmaceutical company. It develops and commercializes novel therapeutics to help patients with rare hematologic diseases and cancers. The company focuses on sickle cell disease and prostate cancer.

Forma has negative growth for sales. In 2018, it reported $164 million in sales. But in 2019, that number decreased to $101 million, a 39% fall in growth rate. In its prospectus, Forma stated that the company is not profitable and likely won’t be for the foreseeable future. Company sales depend on the commercialization of its products, which are required to undergo multiple tests and approvals.

The biotech company filed to go public on May 29, 2020, and quickly priced its recent IPO a couple of weeks later. Shares were priced at a range of $16 to $18 but started trading at $20 on June 19, 2020. Forma raised $278 million, for a market cap of $1.9 billion.

You can look at Forma Therapeutics’ prospectus here.

First Day Return: 95%

ZoomInfo (Nasdaq: ZI)

ZoomInfo is an American business-to-business software as a service company. It sells access to an intelligence platform. This is a database of information about companies and businesspeople for sales, marketing and recruiting professionals. The goal is to help clients find new potential customers.

In the fiscal year ended December 31, 2018, ZoomInfo reported sales of $144 million. But for 2019, the company reported a 103% year-over-year growth, with $293 million in sales. Gross profit also saw a large increase. In 2018, gross profit was $107 million. In 2019, that number increased by 103%, to $225 million. However, the company has debt. Before the IPO, ZoomInfo had $1.2 billion in debt. After using IPO proceeds, that debt is now $842 million.

ZoomInfo filed for an IPO on February 27, 2020. It wasn’t until June 3 that the company priced its recent IPO, with a range of $19 to $20. Shares opened at $21, for a market cap of $19.3 billion.

You can look at ZoomInfo’s prospectus here.

First Day Return: 61.9%

Pliant Therapeutics (Nasdaq: PLRX)

Pliant Therapeutics is a biotech company. It’s focused on developing novel therapies to treat fibrosis. The company hopes to target a number of organs affected by fibrosis. They include the lungs, liver, kidneys, skin and muscle. Pliant hopes to start a Phase 2a trial in the second half of 2020 for its primary product. Its second product is currently in a Phase 1 trial. Pliant expects to give data by the end of 2020.

Founded in 2016, Pliant didn’t record sales until 2019. In 2019, sales were $57 million. And in the last 12 months to date, sales were $86 million. So Pliant is a profitable startup capable of growth.

Pliant filed with the SEC on May 11, 2020. It was priced on June 2 at a range of $14 to $16. Shares started trading at $16 on June 3, raising $144 million. The company’s recent IPO gave Pliant a market cap of $1.1 billion.

You can look at Pliant Therapeutics’ prospectus here.

First Day Return: 33.1%

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