DynaTrace Holdings is this week’s IPO headliner – and this cloud software intelligence platform is just the latest name among tech IPOs that have danced across the summer stage. What’s different this week: DynaTrace is the only tech IPO on a calendar that includes a biopharmaceutical firm, a sushi bar chain and a Canadian cannabis company.
Six IPOs are on tap this week, with bankers expecting to raise nearly a billion dollars.
Tech IPOs – enterprise-tech IPOs and digital health companies – are without a doubt the stars of the IPO Summer of 2019.
The Wall Street Journal took note of the trend last week in back-to-back stories:
- Thursday’s headline: Enterprise-Tech IPOs Spark A ‘Gold Rush’
- Friday’s headline: Two Health-Tech Companies Join Parade of IPOs With Strong Debuts
Take a look at the 2019 Pricings page on IPOScoop.com and the numbers tell the story.
Crowdstrike Holdings, a cybersecurity cloud platform, was priced June 11th at $18, and on June 12th, it started trading. The stock is up 173.18 percent from its IPO price. The stock closed on Friday, July 26th, at $92.88.
Medallia, an experience cloud platform for business, was priced July 18th at $21 and started trading on July 19th. The stock is up 104.76 percent from its IPO price. Medallia closed on Friday, July 26th, at $43.
Those numbers are enough to whet any IPO investor’s appetite.
Circle Wednesday and Thursday
All the action this week is on Wednesday night, July 31st, when all six IPOs are set for pricing. These deals are expected to start trading on Thursday morning, Aug. 1st.
Let’s take a look at this week’s IPO lineup.
DynaTrace Holdings (DT proposed), based in Waltham, Massachusetts, offers a cloud software intelligence platform to give businesses a way to monitor all of their IT operations. DynaTrace clients include Carnival Cruise Lines, Daimler, Keybank, Kroger and U-Haul, according to the company’s website. DynaTrace is backed by private equity firm, Thoma Bravo.
Kura Sushi USA (KRUS proposed), based in Irvine, California, says “Kura Revolving Sushi Bar is a fast-growing technology-enabled Japanese restaurant concept.” Kura Sushi USA was founded in 2008 as a subsidiary of Kura Japan, which operates over 400 revolving sushi restaurants in Japan, according to the prospectus.
Blank Check for Fintech
Netfin Acquisition (NFINU proposed) is a New York-based blank check company that intends to focus its search for targets in the financial technology, technology and financial services industries – collectively known as “fintech.”
Cancer and Anti-Allergy Drugs
Rapt Therapeutics (RAPT proposed), based in San Francisco, is a clinical-stage immunology-based biopharmaceutical company focused on developing oral small molecule therapies for patients with cancer and inflammatory diseases. It has a collaboration agreement with Merck & Co.
Cannabis from Canada
Sundial Growers (SNDL proposed), based in Calgary, Alberta, produces and markets cannabis for the adult-use (play) space in Canada. The company intends to expand its business to include CBD products for therapeutic and wellness purposes as well as medical marijuana.
China’s AR Hologram Company
WiMi Hologram Cloud (WIMI proposed), based in Beijing, offers AR-based holographic services and products for advertising and entertainment. About 80 percent of the company’s revenue came from its augmented-reality holographic advertising services, while the remaining 20 percent came from its holographic AR entertainment products, during the three months ended March 31, 2019, the prospectus says. This IPO is a carryover from last week.
(For more information about these companies, please check the IPO Profiles on IPOScoop.com.)
Week of Aug. 5th
There’s only one IPO scheduled so far for the week of Aug. 5th, which is the first full week in August. But that could change when the U.S. Securities and Exchange Commission’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.