IPO Outlook For The Week: Watch For Chinese E-Commerce Player Yatsen, COVID Vaccine Company Maravai

The IPO market heats up this week with six companies expected to go public. This includes two health care-related companies, a new kind of REIT, a cybersecurity company, Chinese beauty e-commerce company Yatsen and iLottery company NeoGames.

Aspire Real Estate Investors: A new REIT will hit the market when Aspire Real Estate Investors Inc ASPI sells 15 million shares at a price point of $20.

This will be the first publicly traded REIT to pursue a strategy focused on affordable and workforce multi-family housing.

Aspire Real Estate Investors will also offer investors "meaningful tax benefits" as it intends to qualify as the first publicly traded opportunity zone REIT on a national securities exchange.

It is affiliated with Avanath, a real estate investment company that focuses on multi-family apartments, and will begin with nine portfolio properties.

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NeoGames: Online state lottery provider NeoGames NGMS is set to offer 4.8 million shares at a price point of $14 to $16.

The company is a leader in the iLottery market in Europe and several states in the U.S. NeoGames has iLottery contracts in Virginia, New Hampshire, North Carolina, Michigan and Alberta.

NeoGames provides iLottery with a large number of U.S. customers including those in Michigan, the country’s highest grossing iLottery market.

Revenue for the first nine months of 2020 grew 46% year-over-year to $35.2 million. Revenue was $33.1 million for fiscal 2019.

The company has seen growth from the online shift to iLottery products due to COVID-19. Third quarter revenue grew by over 130% in both New Hampshire and Michigan.

Yatsen: Chinese online beauty company Yatsen YSG is planning to sell 58.75 million shares at a price point of $8.50 to $10.50.

The company is the parent of popular cosmetics brand Perfect Diary.

Revenue for Yatsen was up 377% year-over-year in fiscal 2019. Net income in 2019 was $11.1 million.

Revenue for the first nine months of 2020 was $481.9 million.

Perfect Diary saw gross merchandise volume of 100 million RMB on Tmall every month in 2019 and the first nine months in 2020.

Online beauty sales amount to a $38.8 billion market in China. The country has 231.5 million millenials and 171.4 million members of Generation Z, many of whom turn to online stores first when shopping.

China has the largest e-commerce penetration in the beauty category at 31.4%. For the United States, the figure was 21.9% in 2019, compared to the global average of 15.9%.

Telos: Cybersecurity company Telos Corporation TLS plans to sell 12.35 million shares at a price point of $16 to $18.

The company counts the Department of Defense, CIA, FBI, Amazon.com Inc AMZN and Salesforce.com Inc CRM as customers.

Telos had revenue of $159.2 million in fiscal 2019, up 15.4% year-over-year.

The company expects revenue to accelerate in 2021 and 2022 due to several large contract wins. Telos Ghost landed a deal for TSA pre-checks.

The company secured a 10-year deal with the Centers of Medicare and Medicaid for background checks in health care.

Telos expects these new contracts to add $75 million and $135 million in fiscal 2021 and 2022, respectively.

Sotera Health: Owner of the brands Safeguarding Global Health, Sterigenics, Nodion and Nelson Labs, Sotera Health Company SHC plans to sell 46.6 million shares at a price point of $20 to $23.

Sotera competes in markets like sterilization, analytical lab testing and advisory services, which the company said gives it an addressable market of $33 billion.

Sotera counts 40 of the top 50 medical device companies and 8 of the top 10 pharmaceutical companies as customers. Nelson Labs has over 3,800 customers.

Revenue for Sotera was $778.3 million in fiscal 2019. The company had adjusted net income of $100.4 million in 2019.

For the first nine months of 2019, revenue was $601.3 million.

Maravai LifeSciences: Life science and drug development company Maravai LifeSciences Holdings MRVI plans to sell 50 million shares at a price point of $24 to $27.

The company has over 5000 customers including the top 20 global biotechnology companies.

This could be the perfect time for Maravia to do an IPO since it counts Pfizer Inc PFE and BioNTech SE BNTX as customers for its COVID-19 vaccine.

Maravai’s CleanCap technology is used for mRNA products. Fosun Pharma and CureVac CVAC also are using CleanCap for their COVID-19 vaccine candidates.

Revenue for the first nine months of 2020 was $185.7 million, up 73% year-over-year. Net income for the first nine months was $64.3 million.