IPO Outlook: Popular E-commerce Company Wish, Plus Offerings From A Personal Loan Disruptor And A Biotech Firm

After the huge IPOs from AirBnB Inc ABNB and DoorDash Inc DASH last week, the week of December 13 takes a slight breather with only three IPOs scheduled and one potential blockbuster.

Upstart Holdings: Cloud-based lending company Upstart Holdings Inc UPST plans to sell 12 million shares at a price point of $20 to $22.

Over 620,000 loans have been transacted on the company's platform, which brings AI into the personal loan business. The company claims its platform provides a 75% reduction in loss rates and a 10-fold increase in conversion rates.

In June, the company entered the auto lending market. This positions Upstart as a potential competitor or partner to Ford Motor Company F, General Motors Company GM and Ally Financial ALLY.

Founder Dave Girouard left Alphabet Inc GOOGGOOGL to create the company in 2012. Girouard was the president of enterprise at Google from 2004 to 2012 where he helped build the $1 billion cloud apps business.

Girouard will own 17.7% of the company after the offering. Google Ventures is also an investor in the company and will own 1.1% of it after the offering.

In the first nine months of 2020, the company processed 176,983 loans. The 2019 loan total of 215,122 was up 88% year-over-year. Revenue for the first nine months of 2020 was $146.7 million, a 44% year-over-year increase.

Related Link: 6 IPOs To Watch In December: Airbnb, DoorDash And More

BioAtla: Clinical stage biotech BioAtla Inc BCAB is planning to offer 9.4 million shares at a price point of $15 to $17.

The company has two Phase 2 trials for antibody-drug conjugates in indications for sarcomas, NSCLC and melanoma.

BioAtla plans to work with BeiGene Ltd BGNE to initiate more Phase 1 trials by early 2021. BeiGene shares have gone from $28 in 2016 to over $200 in 2020.

Company founder Jay Short invented conditionally active biologics technology and holds over 500 patents. President Scott Smith was previously the president at Celgene, now a unit of Bristol-Myers Squibb Company BMY. Pfizer Inc PFE owns over 10% of the company.

Context Logic Inc (WISH): San Francisco-based Context Logic Inc WISH, owner of the e-commerce platform Wish, seeks to sell 46 million shares at a price point of $22 to $24 in its listing.

The platform is known as a purveyor of inexpensive, and sometimes amusing, goods made in China.

According to the prospectus, affordability is a key element for people shopping online. In the U.S. and Europe, 44% and 85% of respective households have incomes of less than $75,000. In emerging markets, the household income is around $18,000.

Wish has over 100 million monthly active users in more than 100 countries. Wish also has over 500,000 merchant partners and has shipped over 640 million items worldwide. 

The mobile commerce market was worth $2.1 trillion in 2019 and is estimated to hit $4.5 trillion by 2024.

Revenue was $1.1 billion in 2017, $1.7 billion in 2018 and $1.9 billion in 2019. The first nine months of 2020 had revenue of $1.7 billion, a year-over-year increase of 32%.

For the first nine months of 2020, 43% of revenue came from Europe, 42% from North America, 5% from South America and 10% from other regions.

Image courtesy of Wish