The IPO Buzz: GP-Act III Acquisition (GPATU) Raises $250 Million in SPAC IPO
by Jan Paschal. Posted on
GP-Act III Acquisition Corp. (GPATU) raised $250 million in its SPAC IPO – the second blank check IPO in May – on Wednesday night, May 8, 2024. The SPAC’s initial public offering consisted of 25.0 million units at $10.00 each. An individual unit was made up of one Class A ordinary share and one-half of a redeemable warrant. Each whole warrant can be redeemed for one Class A ordinary share, the prospectus says. GP-Act III Acquisition Corp. is incorporated in the Cayman Islands.
This SPAC IPO represents GP-Act III’s second attempt to go public. Its previous SPAC IPO filing was withdrawn in November 2022.
GP-Act III Acquisition’s SPAC IPO began trading at $10.06 – up 6 cents – on volume of about 1.28 million shares at 11:37 a.m. EDT today – Thursday, May 9, 2024 – on the NASDAQ.
Cantor served as the sole book-runner of this SPAC IPO.
“We intend to focus our search on high potential businesses based in the United States,” the prospectus says.
Backing from Brazil
As the name indicates, this is the third SPAC (special-purpose acquisition company) backed by GP Investments, a leading private equity firm.
“GP Investments played an active role in the first wave of (the) Internet investment in Brazil,” the prospectus says. GP Investments backed more than 20 companies during that period.
Antonio Bonchristiano, the CEO of GP-Act III Acquisition Corp., has served as the CEO of GP Investments since April 2014, the prospectus says. Bonchristiano joined GP Investments in 1993. He became a managing director in 1995. He worked for Salomon Brothers in London and New York from 1987 to 1990.
Irwin Simon, the founder and the former chairman and CEO of Hain Celestial Group, an organic tea company, leads the SPAC’s co-sponsor, IDS III LLC, the prospectus says. Simon is the chairman and CEO of Tilray (TLRY), a global leader in cannabis research and production.
Steven Spinner, the CEO and chairman of United Natural Foods, Inc. (UNFI), leads the SPAC’s other co-sponsor, Boxcar Partners III, LLC, the prospectus says.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: Proficient Auto Logistics (PAL) Prices IPO at $15 Mid-Point
by Jan Paschal. Posted on
Following its IPO road map, Proficient Auto Logistics (PAL) priced its IPO at $15.00 – the mid-point of its $14.00-to-$16.00 range on Wednesday night, May 8, 2024. The company, as expected, sold 14.33 million shares – the number in the prospectus – at $15.00 each to raise $215.0 million. The Jacksonville, Florida-based auto transportation company is a new company created by the combination of five founding companies. The owners of those five founding companies will receive a combined cash payment of $180.4 million, which represents about 84 percent of the IPO’s proceeds. (Editor’s Note: This column, published early today, Thursday, May 9, 2024, was updated at around 1 p.m. EDT to include details on Proficient Auto Logistics’ NASDAQ debut.)
Shares of Proficient Auto Logistics opened flat at $15.00 on NASDAQ on volume of about 696,000 shares at 11:32 a.m. EDT today – Thursday, May 9, 2024 – on NASDAQ. By 11:36 a.m. EDT, Proficient Auto Logistics’ stock had broken issue price to trade at $14.99 – down a penny.
Stifel, Raymond James and William Blair were the joint book-runners.
CEO nominee Richard O’Dell indicated an interest in buying up to $3 million of stock – or about 1.4 percent of the IPO, the prospectus says.
Proficient Auto Logistics, based in Jacksonville, Florida, says that it is being formed in connection with this IPO through the combination of the Founding Companies to operate one of the largest auto transportation fleets in North America. The company will use about 1,130 auto transport vehicles and trailers daily, including 615 company-owned transport vehicles and trailers, the prospectus says. As of Nov. 30, 2023, the company had 649 employees. Its customers include GM, BMW, Stellantis and Mercedes-Benz, as well as EV producers such as Telsa and Rivian. Other customers include auto dealers, auto auctions, rental car companies and auto leasing companies.
In the prospectus, Proficient Auto Logistics described the company as “a leading non-union specialized freight company focused on providing auto transportation and logistics services.”
Proficient Auto Logistics says in the prospectus that – on a pro forma combined basis – it had combined net income of $9.1 million on combined operating revenue of $414.6 million for the year that ended Dec.31, 2023. These figures represented results for all five founding companies combined.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: Silvaco (SVCO) Prices IPO at $19 – Top of Range
by Jan Paschal. Posted on
Silvaco Group (SVCO) priced its IPO at $19.00 – the top of its $17.00-to-$19.00 range – and sold 6.0 million shares – the number in the prospectus – to raise $114.0 million on Wednesday night, May 8, 2024. The Santa Clara, California-based company, which provides semiconductor design software and services, went public at a market cap of $542.4 million. (Editor’s Note: This column, initially posted Wednesday night, May 8, 2024, was updated at midday on Thursday, May 9, 2024, to include details on Silvaco’s debut on the NASDAQ.)
Silvaco’s stock opened at $21.00 – up $2.00 for a 10.53 percent gain from its $19.00 IPO price – when it started trading at 11:44 a.m. EDT today – Thursday, May 9, 2024 – on the NASDAQ. Volume on that first trade: 651,872 shares. Silvaco hit an intraday high at $21.59 and then retraced its gains to trade at $19.16 at around 12:55 p.m. EDT. Volume totaled about 2.41 million shares by early afternoon.
Jefferies and TD Cowen Securities were the joint book-runners.
Micron Technology, a Silvaco customer, holds about 1.37 percent of Silvaco’s stock – about 308,641 shares – upon the IPO’s pricing. That stake is the result of Micron’s purchase of a $5 million senior subordinated convertible promissory note on April 16, 2024, the prospectus says.
Some of the IPO’s proceeds will be used to pay off debt, the prospectus says.
Katherine S. Ngai-Pesic, a co-founder and the chair of Silvaco’s board of directors, along with members of the Pesic family, and the SMIK Trust, control the company after the IPO through their ownership of about 70.1 percent of Silvaco’s outstanding stock.
Silvaco, founded in 1984 and based in Santa Clara, California, provides TCAD software, EDA software and semiconductor intellectual property – as well as services – that help semiconductor and photonics companies increase productivity, accelerate products’ time to market, and cut development and manufacturing costs. (Note: TCAD is an acronym that stands for technology computer aided design. EDA is an acronym that stands for electronic design automation.)
Silvaco’s customers include semiconductor manufacturers, original equipment manufacturers (OEMs) and original design manufacturers (ODMs), the prospectus says. The company’s target markets include display, power devices and automotive.
“Our TCAD solutions have been adopted by 3 of the 10 largest semiconductor companies by revenue in 2023, by 8 of the 10 largest flat panel display companies by revenue in 2023, and by 4 of the 10 leading power semiconductor devices companies in 2023,” the prospectus says.
“Our EDA solutions have been adopted by 6 of the 10 largest semiconductor companies by revenue in 2023 and by 7 of the 10 largest flat panel display companies by revenue in 2023.”
The company’s revenue rose in the three years from 2021-2023, while its net loss doubled from 2021 to 2022 and shrank in 2023, the prospectus says:
- Total revenue rose to $54.25 million in 2023 – up from $46.74 million in 2022 and $41.96 million in 2021.
- Silvaco’s net loss was $0.32 million – or $316,000 – in 2023 – down sharply from its 2022 net loss of $3.93 million, which was slightly more than double its 2021 net loss of $1.85 million.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: China’s Battery-Operated EV Maker ZEEKR Launches $341 Million IPO
by Jan Paschal. Posted on
ZEEKR Intelligent Technology Holding Limited (ZK Proposed), a battery-operated passenger EV manufacturer in China, disclosed terms for its $341 million IPO and launched the deal after the closing bell on Friday, May 3, 2024. The terms call for ZEEKR to offer 17.5 million American Depositary Shares (ADS) at a price range of $18.00 to $21.00 each to raise $341.25 million, if priced at the $19.50 mid-point. Each ADS equals 10 ordinary shares, the prospectus says.
Geely Auto of China is spinning off ZEEKR in this IPO.
Goldman Sachs and Morgan Stanley are leading the team of joint book-runners, which includes BofA Securities and CICC.
ZEEKR Intelligent Technology Holding Limited (ZK Proposed), based in Zhejiang, China, manufactures a product portfolio of battery-operated passenger EVs that includes ZEEKR 001, its first vehicle model – a five-seater cross over hatchback vehicle ; ZEEKR 009, its second model, a luxury six-seater model for families and businesses, and ZEEKR X, a compact SUV model.
The company is not profitable. ZEEKR reported a net loss of $1.19 billion on revenue of $6.09 billion for the 12 months that ended June 30, 2023.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: Churchill Capital IX Prices First SPAC IPO of May
by Jan Paschal. Posted on
First SPAC IPO of May: Michael Klein’s SPAC IPO – Churchill Capital Corp. IX/Cayman (CCIXU) was priced Wednesday night, May 1, 2024, to trade today – Thursday, May 2 – on the NASDAQ. Churchill Capital Corp. IX priced its SPAC IPO in sync with the terms in its prospectus: 25.0 million units at $10.00 each to raise $250.0 million. Each unit consists of one Class A ordinary share and one-fourth of a warrant.
Churchill Capital IX shares opened at $10.07 – up 7 cents – on volume of about 1.4 million shares in its NASDAQ debut at 11:14 a.m. EDT today – Thursday, May 2, 2024. The stock’s session high so far is $10.08. Shortly after noon, Churchill Capital IX shares traded at $10.06, their session low so far.
Citigroup was the sole book-runner.
The SPAC IPO market had been quiet since late March.
Churchill Capital Corp. IX, incorporated in the Cayman Islands, did not say that it would focus on a target industry or sector in its prospectus.
This SPAC created some buzz in the IPO market due to its pedigree – backing from former Citi banker Michael Klein.
The IPO Buzz: Viking Prices Upsized IPO at $24 – $1 Below Top of Range
by Jan Paschal. Posted on
Viking Holdings Ltd. (VIK) priced its upsized IPO at $24.00 – $1.00 below the top of its $21.00-to-$25.00 range – on Tuesday night (April 30, 2024). Viking, the Bermuda parent of the upscale cruise line, sold 64.04 million shares – up from 53.04 million shares – at $24.00 each to raise $1.54 billion ($1,536.96 million). Viking’s IPO kicked off the month of May with its debut today – Wednesday, May 1, 2024 – on the New York Stock Exchange. (Updates column with Viking’s debut on the NYSE)
Viking’s stock opened at $26.15 – up $2.15 for a gain of 8.96 percent – when it started trading today (May 1) at around 12:50 p.m. EDT on the NYSE. Viking’s stock rose to $26.33 – up 9.71 percent from its $24.00 IPO price – on volume of about 13.2 million shares at around 1:10 p.m. EDT on Wednesday.
Shares of Viking closed Wednesday at $26.10 – up $2.10 for a gain of 8.75 percent – on volume of about 35.0 million shares in its first day of NYSE trading.
BofA Securities and J.P. Morgan served as the lead joint book-runners. UBS Investment Bank and Wells Fargo Securities acted as lead book-running managers. HSBC and Morgan Stanley served as book-runners for the IPO.
Viking’s IPO was upsized twice in two days:
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At pricing Tuesday night, the size was increased to 64.04 million shares – with 53.04 million shares coming from the selling shareholders TPG, the private equity firm, and CPP Investments, the Canada Pension Plan Board’s investing arm.
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Early Monday morning, Viking’s IPO was raised to 53.04 million shares – with 42 million shares coming from the selling shareholders TPG and CPP Investments.
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The IPO’s initial size was 44.0 million shares – with 33.0 million shares coming from the selling shareholders TPG and CPP Investments.
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To recap, the selling shareholders TPG and CPP Investments added 20 million shares to their part of the IPO – from the terms of the initial filing to the deal’s size at pricing.
Viking offered only 11.0 million shares in the IPO. The company will not receive any proceeds from the sale of the selling shareholders’ stock.
The selling shareholders’ decision to increase their part of the deal is understandable, the IPO pros say.
TPG, the private equity powerhouse, had stepped in to help Viking weather the pandemic storm.
“Private equity wants to get paid,” a veteran IPO player says.
Cornerstone investor Norges Bank Investment Management, a division of Norges Bank, indicated an interest in buying up to $100 million of stock in the IPO, according to the SEC filing. That amounts to about 6.5 percent of the IPO.
Viking Holdings Ltd. (VIK Proposed), based in Pembroke, Bermuda, caters to an upscale clientele ages 55 and up. The company, founded in 1997 with four river vessels, now operates “a fleet of 92 small state-of-the-art ships, which we view as floating hotels,” the prospectus says. Viking’s cruise offerings include Mississippi River cruises, European river cruises and ocean voyages.
As part of its appeal to affluent Baby Boomers (born in the years 1946 through 1964), Viking posts on its website a list of what you won’t see on a Viking cruise. That list includes “No children under 18” and “No casinos.”
Viking is not profitable. The company reported a net loss of $1.86 billion on revenue of $4.71 billion for the year that ended Dec. 31, 2023.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: Viking Holdings (VIK Proposed) Upsizes IPO to 53 Million Shares
by Jan Paschal. Posted on
Viking Holdings Ltd. (VIK Proposed), the Bermuda cruise line, increased the size of its IPO to 53.0 million shares – up 20.5 percent from its initial size at 44.0 million shares – early today – Monday, April 29, 2024. The IPO’s price range was kept the same – at $21.00 to $25.00 – according to the F-1/A filing. Under the new terms, Viking’s IPO is expected to raise $1.22 billion ($1,219.0 million). Viking’s IPO is set for pricing tomorrow night to trade Wednesday, May 1, 2024, on the New York Stock Exchange.
Selling shareholders raised their portion of the IPO to offer 42.0 million shares – up from 33.0 million under the original terms.
Viking is offering only 11.0 million shares – sticking with the IPO’s original terms for its part of the deal. Viking will not receive any of the proceeds from the sale of the selling shareholders’ stock.
BofA Securities and J.P. Morgan are leading the joint book-runners’ team, which includes UBS Investment Bank, Wells Fargo Securities, HSBC and Morgan Stanley. The co-managers’ team includes Rothschild & Co., Stifel, Drexel Hamilton, Loop Capital Markets and R. Seelaus, according to the prospectus.
Viking Holdings Ltd. (VIK Proposed), based in Pembroke, Bermuda, caters to an upscale clientele in their 50s and up. The company, founded in 1997 with four river vessels, now operates “a fleet of 92 small state-of-the-art ships, which we view as floating hotels,” the prospectus says.
Viking is not profitable, according to the prospectus. The company reported a net loss of $1.86 billion on revenue of $4.71 billion for 2023.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
The IPO Buzz: Rubrik & Loar Price IPOs Above Range; Marex Near the Mid-Point
by Jan Paschal. Posted on
(Updates The IPO Buzz column, initially published Wednesday night, April 24, 2024, with more information on Thursday, April 25, the first day of trading)
Up is a golden word on Wall Street. Rubrik (RBRK), the Microsoft-backed cybersecurity data company, and Loar Holdings (LOAR), an aviation parts manufacturer, priced their IPOs above the range last night – ahead of their debuts today – Thursday, April 25, 2024 – on the New York Stock Exchange:
*Rubrik priced its IPO at $32.00 – $1.00 above the high end of its $28.00-to-$31.00 range – and sold a little more stock – 23.5 million shares – up 500,000 shares from the amount in the prospectus – to raise $752 million on Wednesday night (April 24, 2024).
*Loar priced its IPO at $28.00 – $2.00 above the high end of its $24.00-to-$26.00 range – and sold 11.0 million shares – the number in the prospectus – to raise $308.0 million on Wednesday night (April 24, 2024).
Marex Group plc (MRX), the London clearing and commodity futures firm, went its own way – pricing its IPO at $19.00 – just below the $19.50 mid-point of its $18.00-to-$21.00 range – on Wednesday night. Marex sold 15.4 million shares – the number in the prospectus – at $19.00 to raise $292.31 million in its IPO last night (April 24, 2024).
Rubrik’s stock opened at $38.60 – up $6.60 for a gain of 20.63 percent – on the NYSE in early afternoon trading.
Loar’s shares shot up 60.7 percent to open today at $45.00 on the NYSE. That represented a $17.00 gain from its IPO price. Volume was about 2.5 million shares.
Marex Group’s stock gained 50 cents or 2.63 percent to open at $19.50 on the NASDAQ at 12:06 p.m. EDT today on volume of nearly 1.1 million shares.
All three IPOs defied gravity to open higher – in the face of today’s sharp sell-off in the overall stock market.
Of the three newly minted public companies, Marex is the only NASDAQ listing – and the only one in this trio to report a profit for 2023.
Bankers raised a combined $1.35 billion in the pricing of these three IPOs on Wednesday night, April 24, 2024 – just as the month is winding down.
Rubrik in the Sun
For Rubrik, Wednesday night’s IPO pricing marked a moment that the tech unicorn’s fans had been waiting for – for years. The Silicon Valley data security company’s IPO rode the wave of enthusiasm for AI and cybersecurity – setting the stage for bankers to price the data security company’s IPO at $32.00 – $1.00 above its range. The size of Rubrik’s IPO was increased slightly – by a half million shares – resulting in 23.5 million shares priced at $32.00 – to raise $752 million on Wednesday night (April 24, 2024).
Goldman Sachs and Barclays led Rubrik’s team of joint book-runners, which included Citigroup, Wells Fargo Securities, Guggenheim Securities, Mizuho, Trust Securities, BMO Capital Markets and Deutsche Bank Securities.
Rubrik, founded in January 2014, is not profitable. But its subscription ARR (annual recurring revenue) rose 47 percent in its fiscal 2024 (the year ending Jan. 31, 2024) to $784.0 million – up from $532.9 million in fiscal 2023, the Palo Alto, California-based company says in the prospectus. Total revenue also rose during the same period – to $627.9 million in fiscal 2024 (the year ended Jan. 31, 2024) – up from $599.8 million in fiscal 2023. Rubrik’s net loss also grew – to a net loss of $354.2 million in fiscal 2024 – wider than its net loss of $277.7 million in fiscal 2023.
As of Jan. 31, 2024, the end of Rubrik’s fiscal 2024, Rubrik served more than 6,100 customers, up from over 5,000 customers as of Jan. 31, 2023, the prospectus says.
“Organizations around the world rely on Rubrik to achieve business resilience in the face of cyberattacks, malicious insiders, and operational disruptions,” Rubrik says in the prospectus.
Rubrik’s technology alliance partnership with Microsoft is one of its strengths. In 2021, Microsoft invested an undisclosed sum in Rubrik that reportedly was in the tens of millions of dollars. In the prospectus, Rubrik says that “through our alliance with Microsoft Corporation, and along with our mutual go-to-market obligations, we have committed to spend $220 million over the course of up to 10 years for the use of Azure for our data security solutions and preferentially offer public cloud functionality for Azure to our customers.” Azure is a cloud computing platform developed by Microsoft.
Loar Takes Off
To recap: New York’s Loar Holdings, based in White Plains, priced its IPO at $28.00 – $2.00 above its range – and sold 11.0 million shares – the number in the prospectus – to raise $308.0 million on Wednesday night (April 24, 2024).Jefferies and Morgan Stanley led Loar’s joint book-runners’ team, which included Moelis & Co., Citigroup and RBC Capital Markets.Loar’s stock soared when it started trading on Thursday on the NYSE. Loar opened at $45.00, gaining $17.00 or about 60.7 percent from its $28.00 IPO price.Loar designs, manufactures and sells “niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems,” the prospectus says. Loar’s products include auto throttles, lap-belt airbags, seat belts, temperature and fluid sensors and switches, carbon and metallic brake discs and scores of other items. Loar’s top two aircraft platforms are the Airbus A320 family and the Boeing 737 family, the prospectus says.Most of the proceeds from Loar’s IPO will be used to pay off some debt, the prospectus says. The company has incurred debt to pay for acquisitions.For the year that ended Dec. 31, 2023, Loar reported a net loss of $4.62 million on revenue of $317.48 million.Marex Prices IPO Just Below Mid-PointTo recap: Marex Group plc (MRX), a global clearing, commodity futures and financial services firm based in London, chose the middle of the road for its IPO pricing. Marex priced its IPO at $19.00 – below the $19.50 mid-point of its $18.00-to-$21.00 range – and sold 15.4 million shares – the number in the prospectus – to raise $292.31 million on Wednesday night (April 24, 2024).Selling shareholders Amphitryon Ltd. and Ocean Ring Jersey Co. together offered about 75 percent of the stock sold in the IPO – more than 11.0 million shares. The prospectus says that after the IPO, Amphitryon will hold 45.9 percent of Marex Group’s stock and Ocean Ring Jersey will hold 17.7 percent of the stock. (Those post-IPO stakes assume that the underwriters don’t exercise the green shoe.)Marex sold only a small portion of the stock in the IPO – about 3.85 million shares, the prospectus says – while the selling shareholders offered a combined 11.54 million shares. Marex will not receive any proceeds from the sale of the selling shareholders’ stock, according to the prospectus.Marex, founded in 2005, says “ the transformation of our business has accelerated over the last several years, beginning with the majority acquisition by a group of investors advised by JRJ Ventures LLP in 2010.”In the fourth quarter of 2022, Marex acquired the global clearing business as well as the agency and execution businesses of ED&F Man Capital Markets. In December 2023, Marex acquired Cowen’s legacy prime brokerage and outsourced trading businesses.“Clearing is the heart of our business, providing the infrastructure that connects clients to global exchanges.,” Marex says in the prospectus. “We also offer clients access to deep liquidity pools both on an agency and principal basis across a range of different commodities and financial markets, including metals, agriculture, energy, equities and fixed income.”Marex reported a profit for 2023. The financial services company said it earned net income of $141.3 million in 2023 on revenue of $1.24 billion, according to the prospectus.(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy. |
The IPO Buzz: Loar & Rubrik Price IPOs Above Range
by Jan Paschal. Posted on
Up is the word of the night. Loar Holdings (LOAR) priced its IPO at $28.00 – $2.00 above the top of its range – on 11.0 million shares – the number in the prospectus – to raise $308.0 million on Wednesday night, April 24, 2024. The aviation parts manufacturer’s stock is expected to start trading on Thursday, April 25, on the New York Stock Exchange. Loar – at the $28 IPO price – has a market cap of about $2.5 billion.
Loar was one of three big IPOs priced on Wednesday night. All told, New York bankers raised $1.35 billion by pricing the IPOs of Loar, Rubrik (RBRK) and Marex Group plc (MRK) on Wednesday evening, April 24, 2024.
Jefferies and Morgan Stanley led the Loar joint book-runners’ team, which included Citigroup, Moelis & Co. and RBC Capital Markets.
Loar’s pricing news followed a scoop by CNBC earlier tonight that tech unicorn Rubrik (RBRK), a cloud and AI-driven data security company backed by Microsoft, priced its IPO at $32.00 – $1.00 above the top of its range.
Rubrik announced its IPO pricing details later in the evening: Its IPO was slightly upsized to 23.5 million shares – up from 23.0 million in the prospectus – and priced at $32.00 – $1.00 above the high end of its $28.00-to-$31.00 range – to raise $752 million on Wednesday night (April 24, 2024). Rubrik’s stock is expected to start trading on Thursday, April 25, on the NYSE.
| Loar Holdings, based in White Plains, N.Y., designs, manufactures and sells “niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems,” the prospectus says. Loar’s products include auto throttles, lap-belt airbags, seat belts, temperature and fluid sensors and switches, carbon and metallic brake discs and scores of other items. Loar’s top two aircraft platforms are the Airbus A320 family and the Boeing 737 family, the prospectus says.
Most of the proceeds from Loar’s IPO will go toward paying down some debt, the company said in the prospectus. Loar has borrowed money to finance acquisitions. For the year that ended Dec. 31, 2023, Loar reported a net loss of $4.62 million on revenue of $317.48 million. Marex Prices IPO Just Below Mid-Point A third sizable IPO – Marex Group plc (MRX Proposed) – priced at $19.00 – below the $19.50 mid-point of its $18.00-to-$21.00 range – on 15.4 million shares – the number in the prospectus – to raise $292.31 million on Wednesday night. The pricing announcement from Marex confirmed a Bloomberg report on Wednesday night that the IPO had been priced at $19.00 – just below the mid-point of its range. The Marex pricing was in line with the Street’s expectations. Marex Group’s stock is expected to start trading on Thursday, April 25, on the NASDAQ. Marex, a global clearing, commodity futures and financial services firm based in London, reported a profit for 2023: net income of $141.3 million on revenue of $1.24 billion, according to the prospectus. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.
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