The boom in U.S. initial public offerings that started in 2020 has accelerated in 2021 thanks in large part to record stock prices. Proceeds from traditional IPOs are up 232% in 2021 over the same period last year, according to Renaissance Capital.
In fact, there have been more than 250 IPOs completed so far this year, surpassing 2020’s full-year total of 218.
By year’s end, Renaissance expects 2021 to break the record for most annual IPO fundraising set during the dot-com era.
In July, the highest-profile new listing was stock trading app Robinhood Markets Inc. (ticker: HOOD). After pricing its IPO on the low end of its target range, Robinhood stumbled out of the gates, finishing its first day of trading down more than 8%. The stock has since recovered spectacularly.
Investors and analysts are expecting the IPO boom to continue in August. Here are five IPOs to watch:
— Weber (WEBR)
— Authentic Brands Group (AUTH)
— The Fresh Market (TFM)
— Stronghold Digital Mining (SDIG)
— WCG Clinical (WCGC)
Weber began trading on the New York Stock Exchange on August 5. The company reportedly sold 18 million shares at $14 apiece the day before, falling short of plans to raise roughly $800 million by selling 46.8 million IPO shares at a price range of between $15 and $17 per share. That target range had valued the company at roughly $5 billion.
Weber is a leading brand in outdoor cooking products, including charcoal grills, gas grills, electric grills, smart grills and smokers. The company’s products range in price from $40 portable charcoal grills to high-end smart gas grills that sell for up to $3,000.
Grilling competitor Traeger Inc. ( COOK) completed its IPO in late July, and the stock opened 22% above its IPO price on its first day of trading.
In its IPO filings, Weber reported a 24% share of the entire global outdoor grilling market, including a 23% share in the U.S. In the six-month period ending on March 31, 2021, Weber’s revenue increased by 62% to $963 million, and its net income more than tripled to $74 million.
Authentic Brands Group Inc. (AUTH)
Brand management firm Authentic Brands has swooped in to buy up struggling retailers that have been forced into bankruptcy in recent years. The company partnered with shopping mall operators Simon Property Group Inc. ( SPG) and Brookfield Property Partners L.P. ( BPY) to acquire Aeropostale, Brooks Brothers, Forever 21 and other popular brands. Authentic also owns Lucky Brands and Juicy Couture.
Many retail brand owners have been selling off underperforming assets, but Authentic has been looking to expand its holdings. In June, the company acquired Izod, Van Heusen, Arrow and Geoffrey Beene in a $220 million deal.
On July 6, Authentic Brands officially filed its IPO paperwork. In the filing, the company said its net income increased from $45 million in 2016 to $211 million in 2020, and its revenue grew from $165 million to $489 million in the same period. Authentic is reportedly seeking an IPO valuation in the $10 billion range.
Authentic Brands has not yet announced an official IPO date, but the stock will likely begin trading on the NYSE under the ticker AUTH sometime in August.
The Fresh Market Inc. (TFM)
Gourmet grocery chain The Fresh Market has had a unique relationship with Wall Street over the past 11 years. The company first went public back in 2010 but struggled to compete with Whole Foods, Kroger Co. ( KR) and others.
Apollo Global Management Inc. ( APO) ultimately took The Fresh Market private in 2016 in a $1.36 billion buyout deal. The $28.50 per share buyout price represented a roughly 30% premium to The Fresh Market’s IPO price six years earlier.
After spending several years restructuring The Fresh Market’s business, Apollo is taking the company public once again. On July 16, The Fresh Market officially filed for an IPO to raise up to $100 million. Renaissance Capital says the $100 million amount is likely just a placeholder, and the actual IPO could raise up to $250 million.
The Fresh Market reported $1.9 billion in revenue for the 12 months ending in April 2021. An official IPO date has not been announced, but the stock will likely join the Nasdaq under the ticker TFM sometime in August.
Stronghold Digital Mining (SDIG)
Stronghold Digital Mining is a cryptocurrency mining company that is currently focused on mining Bitcoin. The company wholly owns and operates approximately 1,800 crypto asset mining computers.
Cryptocurrency prices have skyrocketed since the beginning of 2020 as a growing number of young investors see digital currency as the best way to hedge against fiat currency inflation. In its IPO filing on July 27, Stronghold reported $7 million in revenue for the 12 months ending on March 31, 2021.
While that revenue number is relatively small, investors shouldn’t underestimate the potential valuation a cryptocurrency miner could get in a market hungry for pure-play cryptocurrency stocks. Stronghold has also reportedly entered into three definitive agreements to purchase an additional 27,300 mining computers.
Stronghold plans to list on the Nasdaq under the symbol SDIG in the near future.
WCG Clinical Inc. (WCGC)
WCG Clinical is a clinical trials solutions company that provides services to biopharmaceutical companies and contract research organizations. The company specializes in study planning, patient engagement and regulatory and scientific review services.
In its IPO filings, WCG reported $498 million in revenue for the 12 months ending on March 31, 2021. On July 27, the company announced a plan to raise $720 million by selling 45 million IPO shares in a target price range of between $15 and $17 per share. The proposed price range would have valued WCG Clinical at around $6.1 billion.
WCG planned to list on the Nasdaq under the symbol WCGC on August 5 but postponed its IPO at the last minute. CEO Donald Deieso reportedly said the company “may reevaluate in the future when conditions are more conducive to sharing our unique story and market opportunity.” Investors may get more updates on the reason for the IPO postponement and the company’s plans for the future sometime in August.
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