Knowing 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 June IPOs according to their return from IPO rates.
Recent IPOs: June
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 instead of a peer-to-peer model, such as 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, where 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 weeks later on June 8, the company priced its recent IPO. Originally, the price range was $18-$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.
First Day Return: +117.7%
Return From IPO: +146.7%
Aftermarket Return: 14.8%
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 business people to 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 had a large increase. In 2018, gross profit was $107 million. In 2019, that number increase by 111% 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 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.
First Day Return: +61.9%
Return From IPO: +133.6%
Aftermarket Return: 49.2%
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 (SCD) and prostate cancer.
Forma has negative growth for sales. In 2018, $164 million in sales was reported. But in 2019, that number decreased to $101 million for a –39% growth rate. In its prospectus, Forma stated 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 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.
First Day Return: +95%
Return From IPO: +132.1%
Aftermarket Return: 16.6%
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 steady growth. Its 2018 sales were $44 million. And in 2019, sales were up for a 48% year-over-year growth at $64 million. Gross profit also increased with a 42% year-over-year growth from $31 million to $44 million.
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 June 26. The price range was $16 to $18. However, shares started trading at $20 a share. Agora raised $350 million for a market cap of nearly $5 billion.
First Day Return: +152.5%
Return From IPO: +125%
Aftermarket Return: -6.9%
Pliant Therapeutics (Nasdaq: PLARX)
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. That includes lung, liver, kidney, 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 twelve 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 to raise $144 million. The company’s recent IPO gave Pliant a market cap of $1.1 billion.
First Day Return: $32.11
Return From IPO: +100.7%
Aftermarket Return: 65.5%
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