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This week kicks off a flood of IPOs expected to hit in May. A diverse group of seven companies is scheduled to raise $1.0 billion in the week ahead. Plant-based burger maker  Beyond Meat ( BYND ) should get the most attention based on its eye-popping growth (+205% in the 1Q19), strong consumer brand, and multi-billion dollar market. The company claims its products address concerns over health, climate change, resource conservation and animal welfare.

Two Chinese technology plays are coming at $1+ billion valuations, So-Young International ( SY ) and Yunji ( YJ ). So-Young has come to dominate China's market for online plastic surgery services, featuring fast growth (+138% y/y) and a positive operating margin. Social e-commerce site Yunji also has fast growth (+102% y/y) but it was unprofitable last year and peers have traded down recently.

Being spun out of Scientific Games, Sci-Play (SCPL) is the week's largest IPO by deal size. While its parent has traded down over the past year, Sci-Play's casino-style mobile games have been an area of solid growth (+15% in 2018). 

Two smaller healthcare companies plan to raise $70-75 million each. TransMedics Group (TMDX) offers a unique system focused on improving the transportation of organs after they are donated. Recent high-growth medical device companies have performed well, though TransMedics has not seen widespread traction, while it has racked up large losses in the meantime. Backed by TPG, Trevi Therapeutics (TRVI) is seeing if an approved opioid can treat chronic itch, cough, and other indications. 

Look out for a number of deals to launch roadshows as well. 13 recent filers become free to set terms this coming week, mostly small-caps and biotechs. LBO'd health products maker KCI Holdings (KCIH.RC) and government contractor Parsons (PSN) are the largest, with estimated deal sizes of about $500 million each. A recent update from lab supplies company  Avantor (AVTR) makes it a likely launch candidate; we estimate its deal size at over $1 billion. Potential billion-dollar deals Change Healthcare (CHNG) and iHeartMedia (IHRT.RC) could also join the calendar.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
Beyond Meat ( BYND )
El Segundo, CA
$175M
$1,237M
$19 - $21
8,750,000
Goldman
JP Morgan
Makes plant-based meat products for groceries and restaurants.
So-Young International ( SY )
Beijing, China
$166M
$1,367M
$11.80 - $13.80
13,000,000
Deutsche Bank
CICC
China-based online marketplace for plastic surgery services.
TransMedics (TMDX)
Andover, MA
$75M
$331M
$15 - $17
4,700,000
Morgan Stanley
JP Morgan
Medical device company that provides a system for donor organ transport.
Trevi Therapeutics (TRVI)
New Haven, CT
$70M
$243M
$14 - $16
4,666,667
Leerink
Stifel
Developing an extended-release version of an opioid for new indications.
SciPlay (SCPL)
Las Vegas, NV
$330M
$1,955M
$14 - $16
22,000,000
BofA ML
JP Morgan
Scientific Games' social gaming unit offering casino-style mobile games.
Yunji ( YJ )
Hangzhou, China
$162M
$2,762M
$11 - $13
13,500,000
Morgan Stanley
Credit Suisse
Chinese e-commerce site that uses a social platform to promote its products.
Red River Bancshares (RRBI)
Alexandria, LA
$26M
$319M
$42 - $46
600,000
FIG Partners
Stephens
Louisiana commercial bank with 24 locations across the state.


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The following IPOs are expected to price this week :

Beyond Meat ( BYND ), which makes plant-based meat products for groceries and restaurants, plans to raise $175 million by offering 8.8 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, Beyond Meat would command a market value of $1.2 billion. Beyond Meat, which was founded in 2009, booked $88 million in sales over the last 12 months. The El Segundo, CA-based company plans to list on the Nasdaq under the symbol BYND. Goldman Sachs, J.P. Morgan and Credit Suisse are the joint bookrunners on the deal.

SciPlay (SCPL), Scientific Games' social gaming unit offering casino-style mobile games, plans to raise $330 million by offering 22.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, SciPlay would command a market value of $1.9 billion. SciPlay, which was founded in 1997, booked $416 million in sales over the last 12 months. The Las Vegas, NV-based company plans to list on the Nasdaq under the symbol SCPL. BofA Merrill Lynch, J.P. Morgan, Deutsche Bank and Goldman Sachs are the joint bookrunners on the deal.

So-Young International ( SY ), a China-based online marketplace for plastic surgery services, plans to raise $166 million by offering 13.0 million shares at a price range of $11.80 to $13.80. At the midpoint of the proposed range, it would command a market value of $1.4 billion. So-Young, which was founded in 2013, booked $105 million in sales over the last 12 months. The Beijing, China-based company plans to list on the Nasdaq under the symbol SY. Deutsche Bank and CICC are the joint bookrunners on the deal.

TransMedics Group (TMDX), a medical device company that provides a system for organ transplants, plans to raise $75 million by offering 4.7 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, it would command a market value of $331 million. TransMedics Group, which was founded in 1998, booked $13 million in sales over the last 12 months. The Andover, MA-based company plans to list on the Nasdaq under the symbol TMDX. Morgan Stanley and J.P. Morgan are the joint bookrunners on the deal.

Trevi Therapeutics (TRVI), which is developing an extended-release version of an opioid for new indications, plans to raise $70 million by offering 4.7 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Trevi Therapeutics would command a market value of $243 million. Founded in 2011, the New Haven, CT-based company plans to list on the Nasdaq under the symbol TRVI. SVB Leerink, Stifel and BMO Capital Markets are the joint bookrunners on the deal. Insiders intend to purchase $28 million of the IPO (40% of the deal).

Yunji ( YJ ), a Chinese e-commerce site that uses a social platform to promote its products, plans to raise $162 million by offering 13.5 million shares at a price range of $11.00 to $13.00. At the midpoint of the proposed range, Yunji would command a market value of $2.8 billion. Yunji, which was founded in 2015, booked $1.9 billion in sales over the last 12 months. The Hangzhou, China-based company plans to list on the Nasdaq under the symbol YJ. Morgan Stanley, Credit Suisse, J.P. Morgan and CICC are the joint bookrunners on the deal. Insiders Crescent Point and Trustbridge intend to purchase $100 million of the IPO (62% of deal).

Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/25/19, the Renaissance IPO Index was up 32.3% year-to-date, while the S&P 500 had a gain of 17.5%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (VICI). The Renaissance International IPO Index was up 14.2% year-to-date, while the ACWX was up 12.8%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include SoftBank and Xiaomi.

The article US IPO Week Ahead: Plant burgers go public in a 7-IPO week originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

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.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.

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