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IPO Preview for June 28 – July 2, 2021

June 28th, 2021

WE’VE GOT A FULL LINEUP OF IPOS THIS WEEK, SO I’M JUST GONNA JUMP RIGHT IN…

Dingdong Maicai (DDL) – June 29, 2021 | 14M Shares
Here we have another grocery delivery app, which is likely to perform more strongly than MissFressh (MF) from last week, with a smaller float, and stronger numbers, this IPO has still be scaled down and the company is unprofitable, so given the poor performance we saw out of MF, I will probably watch this one. Frankly, we haven’t seen much strength out of any of the recent mid-cap Chinese IPOs since Kanzhun (BZ), as RERE, YMM, and MF all performed rather poorly off their debuts. We have a few more Chinese IPOs this week, but many non-Chinese IPOs, so until we see this trend reverse, I’ll be watching these from the sidelines.

Xometry (XMTR) – June 30, 2021 | 6.85M Shares
This company provides an online marketplace for on-demand manufacturing and prototyping. This fits into the ‘gross profits and revenue but operating at a loss’ category, which has been performing alright, but not nearly as strong as ‘gross profits and revenue, AND operating with positive cashflow’. The low float makes this a possible target or trading groups, so if there’s social media chatter preceding the debut, this might become one to play, but if it’s crickets leading up to the launch, I’ll won’t be adding any noise to this one. Just like last week, there are so many strong IPOs on Wednesday that I’ll inevitably have to miss some winners while opting to focus on plays that provide stronger conviction.

SentinelOne (S) – June 30, 2021 | 32M Shares
So here’s one that will be front and center on Wednesday, and while also falling into the ‘Growing revenue and gross profits, but operating at loss’ category:
(GRAPBOL ?), this is a leading cybersecurity company with AI-driven cloud based security that guards against cyber attacks. I have a hard time fitting more buzz-words into a company description without getting ridiculous, and the float is a moderate 32M shares. I sort of expect similar performance as CFLT last week, perhaps a bit sideways and up on Day 1, with stronger performance on Days 2 and 3. Don’t love leaving my funds tied up for so long, with so many other plays on deck this week, but might be time to dump some non-performers to free up capital for these plays.

Intapp (INTA) – June 30, 2021 | 10.5M Shares
Intapp is a SaaS serving specialized industry verticals including Law Firms, Accounting Firms, Investment Banks, and other industries. Based on reading through their website, it seems they are the go-to resource for companies in their vertical that need a website, digital marketing, a CRM, and other web based services, and don’t mind paying a premium to get this all from one trusted source. They claim to provide AI, automation, and cloud security, but they do not appear to be leaders in any of these categories, which is fine, but comes across as buzzword stuffing in their prospectus. Growth is slowing and they are not profitable, and while 10M shares is rather small, I’m not sure this IPO will get much attention given the crowded lineup for Wednesday. It would surprise me if this moved heavily in either direction, but probably won’t play it simply because there are other, more exciting plays.

LegalZoom (LZ) – June 30, 2021 | 19M Shares
Having used LegalZoom to file an LLC in the past, and knowing plenty of other entrepreneurs who regularly use their services, LegalZoom brings a familiar name with a high level of brand recognition to Wednesday’s lineup. Plus they check all the boxes on the ‘Growing Revenue and Gross Profits AND Cash-flow Positive’ trifecta (don’t have a nice acronym for that one yet). With a modest float of just 19M shares, this one will have my attention and I plan on playing this one unless something unexpected comes to my attention mid-week.

CVRx (CVRX) – June 30, 2021 | 6.25M Shares
Ok, so now we’re getting into the debuts that are gonna force me to make decisions on what I want to play for quick scalps… CVRx manufactures a ‘neurostimulation device’ that protects patients against heart failure, and they already have FDA approval, so they’re just raising money for sales & marketing, and to discover new applications for their technology. A rather small 6.25M share float makes this one especially interesting, so if there’s any kind of social media hype circling this one, it might be worth jumping into.

Clear Secure (YOU) – June 30, 2021 | 13.2M Shares
This company has a checkered history as a biometric identification system used to expedite airport security checks (also being deployed in entertainment venues) – Clear Secure went bankrupt in 2009 and has since made a comeback. This one is also being offered to RobinHood users, who will be subject to a 30 day lockup period, so if they get large allocations, there could be even fewer shares available on the debut, of course, that MIGHT also mean there wasn’t very strong institutional interest. I dunno, this is a pretty niche market: but perhaps it’s perfectly positioned to cash in on post-pandemic travel and events where proof-of-vaccine could be something they facilitate at a faster rate than other services. They do compete with TSA Pre-Check, and apparently are faster, but on a pretty crowded day of IPOs, I’m not gonna waive this one though.

Integral Ad Science (IAS) – June 30, 2021 | 15M Shares
IAS provides an online digital advertising monitoring and verification platform, that sounds a lot like what DoubleVerify (DV) does for video ads. DV did surprisingly well on it’s IPO day through Day 2, and IAS boasts solid growth and breakeven operating costs, with a 15M share float. Digging a little deeper, and it appears that IAS works very closely with companies like Microsoft, Google, YouTube, and others to develop methods for accurately tracking digital ad verification. This one might take a few days to lift off, but seems like a strong candidate for a 2-3 day run with little downside, as I don’t expect it to debut at a strong premium.

Krispy Kreme (DNUT) – June 30, 2021 | 26M Shares
For those who don’t know what Krispy Kreme is, you’re missing out on a great donut… or you’re a health nut who doesn’t eat sugar. Anyway, the point is that Krispy Kreme is super popular, has enormous brand recognition, incredible growth, and has just restructured their company to be more profitable in the future, but incurred a lot of debut to make that transition: hence the IPO. This company actually was formerly a public company that went private in 2016, after going through a retail-driven short squeeze before WallStreetBets was a thing. Now it’s come back for a second helping, and my guess is that the public demand for DNUT will far outpace the 26M shares being offered. As long as the debut price isn’t too crazy, this one should be a strong play, and I’d expect the overnight media cycle to run through the week on DNUT.

DiDi Chuxing (DIDI) – June 30, 2021 | 288M Shares
No, that 288M share float is not a typo – this IPO will be huge, and as the leading rideshare platform in China, DiDi is far more ubiquitous in the daily life of Chinese than Uber, yet is still unprofitable and fraught with regulatory and public image issues (a woman was raped and killed by her Didi driver in 2018 and the tragic event is still regularly mentioned in Chinese news). They also operate services in South America. There’s a chance that the Chinese market goes nuts for this one and mops up the exorbitant share offering, but if Uber’s IPO serves as any benchmark for high-float ride-sharing platforms, DiDi investors may be in for a rude surprise. If I miss this one, I’m okay – as I see the other plays on Wednesday as having more upside. I may change my mind at th last minute, but this one is also likely to take all day to pair up sellers and buyers, so don’t expect this one to debut until late in the afternoon.

AMTD Digital (HKD) – June 30, 2021 | 16M Shares
Digital bank in Hong Kong – this one’s been rescheduled twice, and sentiment on Chinese stocks, especially those with any exposure to financial regulation, has soured. And really, there are much more interesting plays on the calendar, so I’m gonna pass on this one.

Aerovate Therapeutics (AVTE) – June 30, 2021 | 7.15M Shares
Cardiopulminary disease medicine delivered in an inhaled dry powder directly into the lungs. Which doesn’t sound very fun (breathing in dust), but they have completed Phase I and the float is just 7.15M shares. I dunno, a lot going on to distract the low-float-IPO crowd from ganging up on this one, so think I’ll pass on this one.

Acument Pharmaceuticals (ABOS) – July 1, 2021 | 8.3M Shares
Phase I Alzheimer’s candidate – Phase II in 2023. Very early stage biotech, but the market has been super hot on anything Alz-related since Biogen’s recent FDA approval was apparently fast-tracked despite lackluster results (surged 60% on the announcement). Probably not a play for me, but one to keep an eye on.

Atour Lifestyle Holdings (ATAT) – July 1, 2021 | 19.7M Shares
Chinese hotel operator with over 70k rooms in 608 hotels across 131 cities, and an additional 575 hotels participate in its ‘managed franchise’ (they call them “manchised” hotels)… they sell products in the rooms, which is somewhat innovative, with impressive revenue of over 100% for the 3 months ending March 31, 2021. As stated earlier, until the trend of Chinese IPOs tanking unless they are ultra-low float stealth plays is broken, I’m gonna focus on other plays.

D-Market Electronic Services & Trading (HEPS) – July 1, 2021 | 56M Shares
Turkish ecommerce company that also claims to provide an online platform for in-game item trading and monetization that includes de-fi (blockchain) aspects and has grown revenue an impressive 145% in 2020 vs 2019. Regional ecommerce plays have had a checkered past: with Coupang dropping like a rock and Ozon dipping for a week and then trading sideways for a month before finally breaking out. I’m gonna sit out on these ‘Amazon of {another country}’ plays, thanks.

EverCommerce (EVCM) – July 1, 2021 | 19M Shares
Profitable + revenue growth, 500,000 customers, and a SaaS for small/mid sized service businesses. This one has the traits of many of the recent less-heralded hidden gems that have posted steady climbs off their IPOs despite failing to produce immediate fireworks. I’m tempted to take a position in this one and give it a couple weeks to play out, and may be enticing enough to encourage me to drop out of older positions that have been trading sideways for a while. It’s not particularly sexy – but profits are always attractive, so there’s reason to be confident that this one performs well without a ridiculous debut premium, so if you can afford to be patient, then EVCM is a good looking play.

Torrid Holdings (CURV) – July 1, 2021 | 8M Shares
Apparel and intimates for plus sized women. I’m gonna avoid trying to be humorous on this one in an effort to keep myself out of trouble with the ‘cancel culture’, but according to the prospectus, the market for plus sized garments is “large and growing”, so if you’re looking for a niche ecommerce play, this one could be for you. But with declining net income during the pandemic, and an industry that I am not very familiar with, I’m gonna pass on this one, despite an attractive float of just 8M shares.

Nyxoah (NYXK) – July 1, 2021 | 2.76M Shares
Medical device for sleep apnea – this is an uplisting from the Belgium Exchange, and though the original IPO was very successful, the majority of uplistings we’ve seen recently have been complete duds.There have been some opportunities to play the initial dip, once existing shareholders are finished initially dumping their shares, but I will be focusing on other trades and this just has too much unpredictability in it.

Moving iMage Technologies (MITQ) – July 1, 2021 | 3.5M Shares
This company sells digital cinemas for small venues and private use, alongside a wide range of drink caddies (those plastic structures between stadium seats that hold you drinks while you watch a baseball game). Nothing too interesting, except that this is a Boustead Securities IPO, and some of those have inspired wild speculation of shadowy shenanigans due to their unreasonable spikes through multiple halts. I’ll be keeping an eye on this one, and likely will put at least something into play, on the chance that it goes parabolic.

Regencell Biosciences (RGCB) – July ?, 2021 | 2.3M Shares
This one is not yet officially on the calendar, but rumors are that it will debut later this week, with a float of just 2.3M shares. That is is a Chinese drug developer focusing on traditional Chinese medicine treatments for ADHD and Autism Spectrum Disorder makes it an enticing Stealth IPO candidate. Stay tuned for mid-week updates – if this one goes live on short notice, watch for explosive halts out of the gate. Exact IPO date pending.

The Glimpse Group (VRAR) – July ?, 2021 | 1.75M Shares
A holding company that operates a handful of loosely related companies in the VR/AR field, including applications for virtual reality and augmented reality training, education, data analysis, co-working, healthcare, presentations, and 3D modeling. With growing revenue and gross profits, this is one of those 2-out-of-3 GRAPBOLs with operating losses. But with just 1.75M shares being floated, and operating in a buzz-worthy industry, this one could be an interesting play. Exact IPO date pending.

Twin Vee Powercats (VEEE) – July ?, 2021 | 2.8M Shares
No, this is not a reboot of the mid-80s TunderCats Cartoon classic, unfortunately, but with a profitable business, experiencing moderate revenue growth, and cashflow positive, this recreational powerboat manufacturer could make a splash with its announced intentions of developing a line of EV catamarans with the IPO cash infusion. Paired with a low-float of just 2.8M shares, it wouldn’t take much social media buzz to make this one cruise to a nice win opportunity off the debut. Exact IPO date pending.

I will send out a mid-week update with exact dates and any other rescheduled IPOs or developments, including any stealth IPO announcements… so stay tuned!

NOTE: This is not financial advice. I am not a financial advisor. I do like to share this information and if you enjoy reading it, make of it what you will and I sincerely hope you are able to use what I’ve shared with you to profit from trades that you yourself make and for which you are 100% responsible.

OH AND ONE MORE THING:
I am trading these IPOs live everyday on this Reddit Thread:

https://www.reddit.com/r/ipowarriors/comments/llrsg2/new_lounge_zone/

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