The IPO markets are wide awake this week as we have nine IPO's on the schedule. Combined the companies are looking to raise a combined $1.2 billion. This week is on track to be the most active week of 2016. Included in this pile of offerings we have three founder-led high-growth software companies and a telecom equipment provider. Other deals include two consumer brands, two bio-techs and one bank.
Valvoline (VVV ), is the largest offering of the group as parent Ashland (ASH ) is attempting to spin off the brand. The company sells automotive and industrial lubricants and operates over 1,000 quick lube centers. The company plans to raise $645 million this week. Though revenue has been flat in recent years, its sees international expansion as a source of growth, while building on its #2 position in the quick lube market by opening and acquiring additional stores.
e.l.f Beauty (ELF ), which sells low-cost branded cosmetics, is the second largest offering as the company plans to raise $125 million. Its products are available through 19,000 national retail locations including Walmart, Target and CVS. The company saw revenue grow 29% to $97 million in the first half of 2016.
The Trade Desk (TTD ) hopes to raise $70 million at a market cap of $641 million. The company provides a programmatic, self-serve platform for ad buyers. In 2015, total spending on its platform totaled over $550 million, resulting in revenue of $114 million for The Trade Desk. Analysts say that despite operating in a crowded market, the company boasts 2015 revenue growth of 155% ,revenue retention of 135% and net income of almost $16 million. The company hopes its strong growth and positive net income will buck the trend of under performing ad-tech companies.
Apptio (APTI ) plans to raise $84 million this week. The company is a cloud-based platform for managing IT investments and counts over 40% of Fortune 100 companies as customers. Analysts say that Apptio saw a significant improvement in margins in the first half of 2016 thanks to a mix shift towards subscription revenue. The company is being offered at a discount to its peers.
Gridsum (GSUM ) offers a platform for data analytics and automated keyword bidding in China. Backed by Steamboat Ventures, the company is set to raise $75 million. According to their filings the company has grown its customer base 45% in 2015, and they saw net revenue increase 75% to $22 million in the first half of 2016 while gross margin stayed flat at 86%.
AC Immune (ACIU ) is a Swiss biotech planning to raise $55 million at a market cap of $673 million. While its lead candidate for Alzheimer's disease previously fell short during Phase 2 trials, the company believes that it still holds promise for milder stages of the disease, and began a Phase 3 trial in the first quarter 2016.
Novan (NOVN ) is looking to raise $45 million at a market cap of $181 million. The company is in Phase 3 trials for acne, with results expected by the first quarter of 2017. Novan's existing shareholders intend to buy over 50% of the deal.
CapStar Financial (CSTR ) has $1.3 billion in assets and seven locations and grew revenue by 11% in the first half od 2016. It is set to raise $40 million and is the second Tennessee bank to go public in two weeks after FB Financial (FBK ), which is up 9% since its offering.
Full Spectrum (FMAX ), a developer of private cellular network radios, aims to raise $15 million this week The company saw its revenue decline 65% in 2015, but now hopes that a new product launch will grow revenue meaningfully.
