U.S. IPO market set for busy fall as six deals launch; long-awaited
The U.S. initial public offering market is gearing up for a busy fall, with at least six deals launching roadshows on Tuesday as traders returned to their desks following the Labor Day holiday weekend.
With the broader equity markets trending at record levels and a robust pipeline of private unicorns, or companies valued at more than $1 billion, “many long-awaited names will finally take the leap to public markets, supported by the busiest month of August for new filings in over a decade,” said Bill Smith, founder and chief executive of Renaissance Capital, a provider of institutional research and IPO exchanged traded funds.
“That said, fall IPO activity is unlikely to match the summer’s frantic pace,” Smith wrote in commentary. “August filings were down from prior months, and the year’s weak IPO aftermarket returns serve as a headwind, evidenced by several postponements at the end of July.”
Still, as of Sept. 1, there were 115 U.S. IPOs publicly on file, of which 81 have updated filings since June 1, suggesting they are actively working up deals. The list includes names like eyeglass maker Warby Parker
WRBY,
— planning a direct listing, restaurant payment processor Toast
TOST,
Authentic Brands Inc.
AUTH,
parent of retailers Forever 21 and Nine West, owner of Sports Illustrated and holder of the brand name and rights to such legendary stars as Marilyn Monroe and Elvis Presley, and eco-friendly shoe maker Allbirds
BIRD,
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Assuming the stock market holds up, Renaissance is expecting 90 to 110 U.S. IPOs by year-end, raising $30 billion. Adding to the long list, Renaissance has identified 28 candidates among private companies that have filed confidentially, chosen underwriters, or otherwise made noises that a deal is pending.
“The pipeline contains an especially strong backlog of tech unicorns, consumer brands, and biotechs,” said Smith.
The biggest deal launch Tuesday based on terms set earlier in the session was that of Thoughtworks
TWKS,
a Chigaco-based technology consulting firm company that will go public at a valuation of up to $6.1 billion.
The company, which expects to change its name to Thoughtworks from Turing Holding Corp. with the IPO, said a total of 36.84 million shares will be offered in the IPO, split between the company and selling shareholders.
The deal is expected to price at between $18 and $20 a share. The stock is expected to list on the Nasdaq under the ticker symbol “TWKS.” Goldman Sachs and J.P. Morgan are the lead underwriters. The company recorded net income of $79.3 million on revenue of $803.4 million in 2020, after income of $28.4…
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