Shares of Cloudflare surged 20% in its first trading day, closing Friday at $18 after being priced at $15 the day before. Meanwhile, SmileDirectClub’s stock tumbled 28% on Thursday.
Cloudflare (NET) opened on September 13 at $18 per share. The company had priced 35M shares at $15.00, above its target $12.00-$14.00 range. Cloudflare is a cloud-security company, competing with cloud providers such as Amazon (AMZN) and Microsoft (MSFT). The company has faced some criticism recently for providing services to sites like 8chan.
In a research note ahead of the company's IPO, MKM Partners analyst Rohit Kulkarni said that while he was not making a recommendation or initiating coverage on the stock, he is impressed by Cloudflare's recently reported accelerating top-line growth and potential to land-and-expand at large Fortune 1000 customers.
Satsuma Pharmaceuticals (STSA) opened on September 13 at $19.00 per share. The company had priced 5.5M shares at $15.00. The deal size was increased from 5.0M shares and priced at the mid-point of target $14.00-$16.00 range. Satsuma is a biopharmaceutical company developing migraine treatments.
Springworks Therapeutics (SWTX) opened on September 13 at $24.50 per share. The company had priced 9M shares at $18.00, at the top of its $16.00-$18.00 target range. The clinical-stage biopharmaceutical company said it will use the proceeds of its IPO to fund studies of nirogacestat, its most advanced product candidate, which is initially in development for the treatment of desmoid tumors, and of mirdametinib, its second product candidate in development to treat a rare tumor of the peripheral nerve sheath.
SmileDirectClub (SDC) opened on September 12 at $20.55 per share. The company had priced 58.54M shares at $23.00, above the $19.00-$22.00 target range. JPMorgan and Citi acted as joint book running managers for the offering. SmileDirectClub is an online dentistry company that sells teeth aligners directly to consumers on its website and in its "SmileShops" starting at $1,895 for a two-year plan.
10x Genomics (TXG) opened on September 12 at $54.00 per share. The company had priced 10M shares at $39.00. The deal size was increased from 9M shares and priced above the $36.00-$38.00 target range. JPMorgan, Goldman Sachs and BofA/Merrill acted as joint book running managers for the offering. 10x Genomics is a single-cell sequencing company.
- In its first trading day, CloudFlare ended at $18.
- Satsuma finished Friday at $16.90, after pricing shares at $15.
- Springworks ended the week at $22.63.
- SmileDirectClub tumbled 28% on its first day of trading Thursday.
- Off to an impressive start, 10x opened at $54, well above its IPO price.
UPCOMING IPOS: Among the upcoming IPOs are Peloton (PTON), We Company (WE), Envista Holdings (NVST), Exagen (XGN) and Datadog (DDOG).
Peloton is best known for at-home fitness equipment and accompanying streaming fitness services. In a research note ahead of the company's IPO, DA Davidson analyst Michael Kawamoto initiated coverage of Peloton with a Neutral rating and $29 price target, stating that the company has "impressive" topline growth, but market saturation and its ability to scale remain questions. Recent investments, along with "very robust marketing spend," will keep profitability "muted" for at least the next few years, the analyst added.
We Company, previously We Work, rents out co-working spaces to start-ups, freelancers and enterprises. SoftBank (SFTBY) is one of WeWork's biggest backers.
On September 13, in an amended initial public offering filing, the We Company said it will list its shares on the Nasdaq (NDAQ). Further, the company is making a number of changes to its proposed governance structure "in response to market feedback." We's board of directors and Adam Neumann have agreed to implement the following changes to its governance structure: The company will appoint a lead independent director by the end of the year; Its high-vote stock will decrease from 20 votes per share to 10 votes per share; The voting power of its high-vote stock will sunset and automatically decrease to one vote per share in the event that Neumann becomes permanently incapacitated or dies; No member of Neumann's family will sit on the board; Any chief executive officer who succeeds Neumann will be selected by the board of directors, acting as a group; Neumann will give to the company any profits he receives from the real estate transactions he has entered into with the company.
Also on Friday, The Wall Street Journal's Maureen Farrell and Corrie Driebusch reported that SoftBank intends to purchase at least $750M of the shares in We's upcoming IPO. The Japanese conglomerate, already the largest investor in WeWork's parent, would end up with 25% or more of the shares sold in an IPO that is expected to raise no less than $3B and value the company at $15B-$20B, the authors said, citing people familiar with the matter.
Envista Holdings sells dental products to practitioners worldwide and it aims to separate from parent company Danaher (DHR) in a $602M IPO.
Exagen sells blood tests that can diagnose, prognose, or monitor autoimmune diseases.
Datadog sells IT infrastructure monitoring and analytics software and is aiming to raise $492M from the sale of its Class A common stock in its IPO.
"Opening Day" is The Fly's recurring series of stories on the latest initial public offerings, their performance, analyst commentary and upcoming IPOs.