IPO Outlook For The Week: Asana, Palantir Lead Busy Week Of Debuts

Another busy week of IPOs is set for the week of Sept. 28. Here is a look at many of the companies set to price and go public this week.

Boqii Holdings Ltd.

The largest pet-focused platform by revenue and customers in China, Boquii Holdings Ltd. BQ is set to go public in the U.S. offering 7 million ADS at a price point of $10 to $12. Boqii has grown to offer a user community, an app, private-label offerings, SaaS solutions for physical pet store, live streaming/short video and took a stake in a leading pet food manufacturer.

Revenue was $108.6 million for the last full fiscal year. The last reported quarter saw revenue of $33.7 million. Boqqi has over 23 million registered users for its online pet community.

Orphazyme A/S

Late-stage biopharmaceutical company Orphazyme ORPH is set to go public this week. The company just announced its arimoclomol was granted for priority review by the FDA with a March 17 action date.

Arimoclomol is being tested to treat NPC (Niemann-pick disease), which impacts 1,800 people in the United States and Europe. The drug is expected to be submitted for approval in Europe in the second half of 2020.

The company plans to sell 7.6 million ADS at a price point of around $13.

Asana

Facebook FB co-founder Dustin Moskovitz founded Asana ASAN as a productivity platform for workforces. The company had 3.5 million free accounts and 1.4 million paid users in July. Revenue increased by 86% in fiscal 2020 to $142.6 million.

Asana competes in a work management market that is expected to grow from $23 billion to $32 billion by 2023. The company competes against Slack Technologies WORK, which is valued at $15 billion and has seen shares rise 18% in 2020.

The company is going public via a direct listing. Thirty million shares will be offered at a price point determined by buy and sell orders collected by the NYSE.

Palantir Technologies

Peter Thiel, co-founder of Paypal Holdings PYPL, is the co-founder and Chairman of Palantir Technologies PLTR, a company that builds software platforms for companies.

More than 125 companies in the defense and commercial industries use Palantir’s Gotham and Foundry platforms. Revenue for the company grew 25% in fiscal 2019 to $742.6 million. The first half of 2020 saw revenue grow 49% to $481.2 million.

Palantir believes it has a total addressable market of $119 billion, with $56 billion coming from commercial businesses and $63 billion coming from government businesses.

The company will offer 257 million shares through a direct listing.

Publicly traded Sutter Rock Capital SSSS is an owner of Palantir shares, which make up 15% of its investment portfolio. 

Yalla Group Ltd.

The largest voice-centric social networking and entertainment platform in the Middle East/North Africa (MENA) is set to go public. Yalla Group Ltd. YALA is set to offer 18.6 million ADS at a price point of $7 to $9.

The company has 12.5 million MAU and 5.4 million paying users. The company targets users in 10 countries that have a total population of 247 million people.

Revenue grew 99.6% in the first six months of 2020 to $52.8 million. Net income for the first six months of 2020 was $25.2 million. Revenue was $63.5 million for full fiscal 2019.

Chindata Group Holdings

The largest hyperscale data center with a 21.5% market share is set to offer 40 million ADS in an IPO this week. The company plans on listing ADS at $11.50 to $13.50.

Chindata Group Holdings CD has 9 data centers, including 7 hyperscale data centers, and an additional 6 under construction. Revenue was $1220.7 million in 2019. Six-month revenue was $114.7 million.

Mission Produce

A leader in avocado production and sales is set to go public on the NASDAQ with the appropriate symbol AVO. Mission Produce AVO will offer 9.375 million shares at a price point of $15 to $17.

The company sells avocados to retail, wholesale and foodservice. Mission Produce has over 10,000 acres and 11 distribution centers.

Mission Produce saw revenue of $883 million in 2019. Revenue has grown at a compound annual growth rate of 14% from 2009 to 2019 for the company.

Academy Sports and Outdoors Inc.

The leading value-oriented sporting goods and outdoor retailer will IPO this week with an offering of 15.625 million shares at a price point of $15 to $17. Academy Sports and Outdoors Inc. ASO has 259 stores in 16 states, mainly in the south.

The company served 30 million unique customers in 2019 with 80 million transactions. Revenue for 2019 was $4.83 billion.

The company has an average store size of 70,000 square feet. In 2019, the company created a small box format that has seen higher sales square feet and inventory turnover.

Rival Dick’s Sporting Goods DKS shares are up over 40% in the last year and valued at around $5 billion.

Immunome

Small biotech company Immunome IMNM is set to go public. The offering will be relatively small with 2.5 million shares offered at a price point of $11 to $13. The company will have a valuation of $111 million based on its mid-point.

The company has a proprietary human memory B cell platform for antibody therapeutics. The company has a collaboration and $13.3 million funding from the Department of Defense to develop a BCP candidate for Covid-19. Immunome plans to begin initial clinical testing for the Covid-19 treatment in the first half of 2021.