December opens with just one IPO on the calendar – in keeping with the trend for the first week of December over the past five years. Nevertheless, there is hope in the wind. Here are a few big names in the wings that have caught the attention of some IPO investors: Bill.com Holdings (BILL proposed), Reynolds Consumer Products (REYN proposed) and XP Inc. (XP proposed). All have filed their prospectuses with the U.S. Securities and Exchange Commission, but no pricing terms yet.
In the Pipeline:
Bill.com Holdings, based in Palo Alto, California, provides small and medium-sized businesses with cloud-based software that simplifies, digitizes and automates complex back-office financial operations. Customers use Bill.com’s platform “to generate and process invoices, streamline approvals, send and receive payments, sync with their accounting system, and manage their cash,” the prospectus says.
On Nov. 15, Bill.com Holdings filed an S-1 for its IPO of $100 million. (Note: $100 million is a standard place-holder amount.)
Reynolds Consumer Products, based in Lake Forest, Illinois, is a household name. The company – known for its iconic brands such as Reynolds Wrap aluminum foil and Hefty plastic trash bags – has a presence in 95 percent of the households in the United States, the prospectus says.
On Nov. 15, Reynolds Consumer Products filed an S-1 for its IPO of $100 million. (Note: $100 million is a place-holder amount.)
XP Inc., based in Sao Paulo, is a leading technology-driven financial services broker and platform in Brazil, which is the world’s sixth-largest economy with over 200 million people and a GDP of over US$2 trillion. Founded in 2001, XP says it’s the No. 1-ranked financial investment brand in Brazil, with an NPS (Net Promoter Score) of 71, as of September 2019, “the highest score in our market based on company filings according to a third-party analyst research report.”
On Nov. 20, XP filed an F-1 for its IPO of $100 million. (Note: $100 million is a place-holder amount.)
Late November – Early December Data
Just one IPO was priced and started trading last week, which was cut short by the Thanksgiving holiday. That’s par for the course.
IPOScoop data shows the following traffic for Thanksgiving week and the first week of December in each of the past five years from 2014 through 2018:
- 2014 – None in Thanksgiving week and one the next week
- 2015 – One in Thanksgiving week and none the next week
- 2016 – None in Thanksgiving week and one the next week
- 2017 – One in Thanksgiving week and three the next week
- 2018 – One in Thanksgiving week and three the next week.
Alussa Energy Acquisition (ALUS.U), a unit offering, was priced last week. That deal brought November 2019’s IPO traffic to 26 deals, up from 17, the historic average for November from 2001 through 2018, according to IPOScoop data.
The other deal on last week’s IPO Calendar was LMP Automotive, which was a carryover from the previous week. That deal was carried over again to land on this week’s IPO Calendar.
This Week’s Solo Deal
The week’s only IPO is set for pricing in mid-week. It’s a small-cap deal, with bankers expecting to raise about $11.5 million if the IPO’s 2.09 million shares are priced at the midpoint of its $5-to-$6 range.
Wednesday night pricing to trade Thursday morning:
LMP Automotive Holdings (LMPX proposed), based in Plantation, Florida, is an e-commerce and facilities-based retail platform for consumers who want to buy, sell, rent, subscribe for or finance pre-owned and new cars. The company offers vehicle subscriptions as an alternative to buying or leasing without long-term commitments, the prospectus says.
December’s Second Week
The IPO Calendar for the week of Dec. 9, 2019, lists just one deal – a blank check. But that could change when the SEC’s filing window opens again for business on Monday morning.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.