The IPO Buzz: September SNOW

SNOW in September is on Wall Street’s mind this week.  Snowflake, the big data cloud company, is among 13 deals on the IPO Calendar. Bankers expect to raise $7.077 billion, making this a blockbuster week.

Snowflake (SNOW proposed) generated a flurry of headlines with its disclosure that Salesforce Ventures LLC and Berkshire Hathaway, Inc., have each committed to buy $250 million of stock at the IPO price in a private placement that will close at the same time as the IPO. That vote of confidence, as CNBC put it, was dropped in Snowflake’s amended prospectus, which was filed on Tuesday, Sept. 8th, with the U.S. Securities and Exchange Commission.

The buzz among IPO investors also swirled around a handful of other names on tap this week:  JFrog Ltd. (FROG proposed), Sumo Logic (SUMO proposed) and Unity Software (U proposed) – all from the software sector – along with Outset Medical (OM proposed) and American Well Corp., also known as Amwell (AMWL proposed), both from the healthcare arena.

The pace was fast and furious at the SEC’s filing window last week. Twenty-one companies filed to go public, with plans to raise $3.37 billion. Another 21 companies filed new terms with the SEC by amending their prospectuses.

Nine companies – all SPACs – went public last week. Special-purpose acquisition companies (SPACs), also known as blank check companies, raised a total of $3.13 billion in their IPOs during Labor Day week. (You can see this list and the SEC filings cited in the paragraph above by clicking on Archive at the bottom of the home page, and when the next page pops up,  click again on IPO Traffic – Week Ending Sept. 11, 2020.)

An IPO Blizzard

Thirteen companies are scheduled to go public this week – 12 traditional IPOs and one SPAC.  One more deal – a blank check called Brookline Capital Acquisition – is listed as pricing “the week of Sept. 14” – and it’s a carryover from last week.

Let’s take a look at these IPOs, organized by pricing and trading dates.

Monday night pricing for Tuesday trading:

Outset Medical (OM proposed), based in San Jose, California, is a rapidly growing medical technology company pioneering portable dialysis machines. These machines use a first-of-its-kind technology to reduce the cost and complexity of dialysis.

This is an IPO of 7.6 million shares at $22 to $24 each to trade on the NASDAQ.

Tuesday night pricing for Wednesday trading:

Executive Network Partnering Corp.   (ENPC.U proposed), is a Boston-based blank check company, aka a SPAC, led by Paul Ryan, the former speaker of the U.S. House of Representatives.

This is an IPO of 12 million units at $25 each to trade on the New York Stock Exchange.

JFrog Ltd.  (FROG proposed) is a Sunnyvale, California-based  company whose technology lets companies continuously deliver software updates across any system. This is “liquid software,” JFrog says.

This is an IPO of 11.6 million shares at $33 to $37 each to trade on the NASDAQ.

Metacrine (MTCR proposed) is a San Diego, California-based clinical-stage biopharmaceutical company focused on discovering and developing therapies for patients with liver and gastrointestinal (GI) diseases.

This is an IPO of 6.5 million shares at $12 to  $14 each to trade on the NASDAQ.

Snowflake (SNOW proposed), based in San Mateo, California, is pioneering the Data Cloud to give customers a simpler way to manage their data across storage, compute and cloud services.

This is an IPO of 28 million shares at $75 to $85 each to trade on the NYSE. If the IPO is priced at the midpoint of that range, it would raise $2.24 billion.

StepStone Group, Inc.   (STEP proposed) is a New York-based investment firm. Its clients include some of the world’s largest pension funds, sovereign wealth funds, and insurance companies, as well as high-net-worth individuals.

This is an IPO of 17.5 million shares at $15 to $17 each to trade on the NASDAQ.

Wednesday night pricing for Thursday trading:

American Well Corp.  (AMWL proposed) is a leading telehealth company, based in Boston. In the six months ended June 30, 2020, Amwell powered more than 2.9 million telehealth visits for its clients.

Google has agreed to buy $100 million of Amwell’s stock at the IPO price in a private placement that will close concurrent with the IPO.

This is an IPO of 35 million shares at $14 to $16 each on the NYSE.

Broadstone Net Lease  (BNL proposed) is a New York-based real estate investment trust (REIT) that has invested in net leased real estate across the industrial, healthcare, restaurant, office and retail property types.

This is an IPO of 33.5 million shares at $17 to $19 each on the NYSE.

Dyne Therapeutics    (DYN proposed),  based in Waltham, Massachusetts, is developing therapeutics to treat genetic muscle diseases. Its initial focus is on a treatment for Duchenne muscular dystrophy.

This is an IPO of 10.3 million shares at $16 to $18 each on the NASDAQ.

Pactiv Evergreen (PTVE proposed) is the largest manufacturer and distributor of packaging and cartons for fresh food and beverages, as well as for food and beverage products, in North America. The company was formerly known as Reynolds Group Holdings. Inc.

This is an IPO of 41 million shares at $18 to $21 each on the NASDAQ.

Sumo Logic  (SUMO proposed), based in Redwood City, California, is the pioneer of Continuous Intelligence, a new category of software that lets organizations automate the collection, ingestion and analysis of data.

This is an IPO of 14.8 million shares at $17 to $21 to trade on the NASDAQ.

Vitru Ltd.  (VTRU proposed) is an online education company, based in Brazil.

This is an IPO of 11.2 million shares at $22 to $24 each to trade on the NASDAQ.

Thursday night pricing for Friday trading:

Unity Software (U proposed), based in San Francisco, is the world’s leading platform for creating and operating interactive real-time 3D content. It’s popular with creators of gaming content for mobile phones, tablets and other devices.

This is an IPO of 25 million shares at $34 to $42 each to trade on the NYSE.

Pricing “Week of Sept. 14”

Brookline Capital Acquisition  (BCACU proposed) is a New York-based blank check company, or SPAC, focused on the life sciences industry.

This is an IPO of 5 million units at $10 each to trade on the NASDAQ.

(For more information about these companies, please check the IPO profiles on the home page of .)

Looking Ahead

The long-awaited Palantir Technologies (PLTR proposed) offering  is scheduled during the week of Sept. 21st. The following week, Asana  (ASAN proposed) is set to go public. Both are direct listings. More names could land on the IPO Calendar for those weeks when the SEC’s filing window opens again for business on Monday morning, Sept. 14th.

Stay tuned.

Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The 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 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.