US IPO Week Ahead: Palantir and Asana direct-list in 9 IPO week with tech, sports, and avocados

Nine IPOs and two direct listings are scheduled to go public in the week ahead. The diverse group includes three foreign tech issuers, two biotechs, two US tech unicorns, a sporting goods retailer, an avocado supplier, a medical device maker, and a foreign education company. More SPACs will likely join the calendar as well.

Palantir Technologies (PLTR) and Asana (ASAN) will be the year’s first direct listings, with estimated market values at listing of more than $20 billion and $5 billion, respectively. Both companies are fast-growing and highly unprofitable. Asana has achieved a sticky customer base and strong net retention, and Palantir has long contracts with its customers. Recent software IPOs have outperformed, although direct listings historically haven’t seen the same enthusiasm: last year’s sole direct listing, Slack Technologies (WORK), last closed up 5% from its reference price, while 2018 direct listing Spotify (SPOT) saw little action until soaring more than 100% in the 2Q as usage spiked during the pandemic.

The largest IPO of the week, Chinese data center operator Chindata Group Holdings (CD) plans to raise $500 million at a $4.5 billion market cap. The company has generated explosive revenue growth, and it turned profitable on an EBITDA basis in 2019. Backed by Bain, the company operates six hyperscale data centers in China and one in Malaysia, and is constructing five data centers in China and one in India.

A rarity in the 2020 IPO market, US retailer Academy Sports and Outdoors (ASO) plans to raise $250 million at a $1.5 billion market cap. With over $5 billion in LTM sales, the KKR-backed company is one of the leading full-line sporting goods and outdoor recreation retailers in the US. Revenue rose 19% to $2.7 billion in the first half of its current fiscal year, while operating cash flow more than septupled to $774 million.

Mission Produce (AVO), a leading supplier of fresh avocados, plans to raise $150 million at a $1.1 billion market cap. The company serves retail, wholesale, and foodservice customers in over 25 countries, and it has long-standing client relationships, with a majority of its top 10 customers in the FY19 having been customers for over 20 years.

Dubai-based social network Yalla Group (YALA) plans to raise $149 million at a $1.5 billion market cap. Yalla is the largest voice-centric social networking and entertainment platform in the Middle East and North Africa region, with approximately 12.5 million monthly user visits and 5.4 million paying users in the 2Q20. The company has demonstrated growth and profitability with strong free cash flow generation.

In its second attempt to go public, Pulmonx (LUNG) plans to raise $100 million at a $518 million market cap. Pulmonx’s Zephyr Valve, a severe emphysema treatment device, received pre-market approval in 2018 and is now commercially available in more than 25 countries, delivering over 80,000 valves used to treat more than 20,000 patients through June 30, 2020.

Listed in Copenhagen, Danish rare disease biotech Orphazyme (ORPH) plans to raise $100 million at a $455 million market cap on the Nasdaq. The company’s candidate arimoclomol is in development for Niemann-Pick disease Type C (NPC). Originally scheduled to list last week, the company delayed pricing its US IPO following the FDA’s recent acceptance on a priority review basis of the NDA for arimoclomol in NPC.

Chinese pet-focused online retailer Boqii Holding (BQ) plans to raise $77 million at a $998 million market cap. Boqii is the country’s largest pet-focused e-commerce platform and online community. Following a decline in revenue in its latest fiscal year, growth turned positive in the MRQ (+26%), though gross margin declined 5 percentage points (18%) and operating loss widened.

Preclinical oncology biotech Immunome (IMNM) plans to raise $30 million at a $126 million market cap. The company’s lead discovery program, IMM-ONC-01, is focused on interleukin-38, a small protein which appears to function as a novel immune checkpoint inhibitor. Immunome expects to file an IND for IMM-ONC-01 in the 2H21 upon successful completion of its preclinical evaluation.

Chinese education services provider Lixiang Education (LXEH) plans to raise $33 million at a market cap of $133 million; it is one of the 10 largest education providers in the Zhejiang with over 4,500 students enrolled.

U.S. IPO Calendar
Deal Size
Market Cap
Price Range
Shares Filed
Orphazyme (ORPH)
Copenhagen, Denmark
Danish late-stage biotech developing protein therapies for rare neurodegenerative diseases.
Chindata Group (CD)
Beijing, China
$11.50 – $13.50
Morgan Stanley
Integrated data center operator focusing on Asia-Pacific emerging markets.
Yalla Group (YALA)
Dubai, United Arab Emirates
$7 – $9
Morgan Stanley
Provides a voice-centric social networking and entertainment platform in MENA.
Asana (ASAN)
San Francisco, CA
Provides enterprise task management and collaboration software.
Boqii Holding (BQ)
Shanghai, China
$10 – $12
Roth Cap.
China’s largest pet-focused online retailer.
Mission Produce (AVO)
Oxnard, CA
$15 – $17
JP Morgan
Leading supplier of fresh avocados.
Palantir (PLTR)
Denver, CO
Data analytics platform focused on the government and financial sectors.
Pulmonx (LUNG)
Redwood City, CA
$14 – $16
Morgan Stanley
Makes minimally invasive system to treat severe emphysema.
Academy Sports (ASO)
Katy, TX
$15 – $17
Credit Suisse
JP Morgan
Value-oriented sports and outdoor equipment retailer in the southern US.
Immunome (IMNM)
Exton, PA
$11 – $13
Preclinical biotech developing antibody therapies for cancer and infectious diseases.
Lixiang Education Holding (LXEH)
Zhejiang, China
$9 – $11
AMTD Global
Loop Capital Markets
Provides private primary and secondary education services in China.

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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/24/20, the Renaissance IPO Index was up 59.7% year-to-date, while the S&P 500 was up 0.5%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 30.8% year-to-date, while the ACWX was down 6.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
The article US IPO Week Ahead: Palantir and Asana direct-list in 9 IPO week with tech, sports, and avocados originally appeared on IPO investment manager Renaissance Capital’s web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

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