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IPO Roundup: Uber in driver’s seat as IPO market heats up with a slew of companies going public this week

Over a dozen IPOs are expected to price, including six biotech firms and a Russian job site

A driver looking at the Uber app
There were 1.5 billion trips logged on the Uber technology platform for the fourth quarter

A burst of successful IPOs is inspiring private companies to tap the capital markets, with at least 15 deals expected to be priced this week, including Uber Technologies Inc (NYSE:UBER), the biggest IPO since Alibaba Group Holding Ltd (NYSE:BABA) in 2014.

Uber is expected to price its much anticipated offering on Thursday, just weeks after its ride-sharing rival Lyft Inc (NASDAQ:LYFT), had a rough start as a public company.

Just ahead of Uber’s IPO, drivers for the ride-hailing company and its top rival, Lyft, will stage a walkout over working conditions and wages. Drivers in at least eight US cities — including Washington, New York, Los Angeles — are planning to strike Wednesday, according to the New York Taxi Workers Alliance.

READ: Uber Technologies files for IPO

“Wall Street investors are telling Uber and Lyft to cut down on driver income, stop incentives, and go faster to Driverless Cars,” said Bhairavi Desai, executive director of the taxi alliance. “With the IPO, Uber’s corporate owners are set to make billions, all while drivers are left in poverty and go bankrupt.”

Drivers have earned more than $78.2 billion on Uber since 2015, as well as $1.2 billion in tips.

The ride-hailing company set a target price range of $44 to $50 per share in a regulatory filing. It plans to sell 180 million shares to raise up to $9 billion. Existing investors will sell a further 28 million shares for up to $1.35 billion.

In the regulatory filing, Uber reported a net loss for the first quarter of about $1 billion, on sales of about $3 billion.

Uber is listing under the New York Stock Exchange under the symbol “UBER.”

Milestone Pharmaceuticals Inc

Milestone Pharmaceuticals Inc (NASDAQ:MIST) will issue 5 million shares between $14 and $16 Wednesday to raise around $92 million. The Charlotte, North Carolina, clinical-stage biotech company was founded in 2003 to develop etripamil for the treatment of various cardiovascular diseases.

The compnay has shown promising Phase 2 trial results for its primary compound and has several related programs in earlier stages of development. The company plans to list on the Nasdaq and trade under the ticker symbol “MIST.”

HeadHunter Group Plc

HeadHunter Group PLC (NASDAQ:HHR), Russia’s largest online-recruitment firm, will offer up to 18.75 million American Depository Receipts on Nasdaq at between $11 and $13.50 a share Thursday to raise around $253.13 million. The online job site connects Russian companies with prospective employees.

HeadHunter postponed plans for a US offering last April following a new wave of sanctions that pummeled Russian markets. The shares will be sold by Goldman Sachs Group Inc and Elbrus Capital, which acquired the company from Mail.ru Group Ltd. in 2016.

Applied Therapeutics Inc

Applied Therapeutics Inc (NASDAQ:APLT) will issue 4 million shares between $14 and $16 Thursday to raise about $73.6 million. Based in New York City, the pharmaceutical company develops drugs  targeting galactosemia, a genetic disorder that impacts a person's ability ability to process sugar and T-cell lymphoma.

Applied Therapeutics was founded in 2016 and plans to list on the Nasdaq under the symbol “APLT.” Citi, Cowen and UBS Investment Bank are the joint bookrunners on the deal.

Axcella Health Inc 

Axcella Health Inc (NASDAQ: AXLA) will issue more than 3.57 million shares between $20 and $22 Thursday to raise about $90.4 million. The Massachusetts biotech develops therapies for liver realted diseases including non-alcoholic fatty liver disease.

The Cambridge, Masachusettes-based company was founded in 2008 and plans to list on Nasdaq under the symbol “AXLA.” Goldman Sachs, JP Morgan and SVB Leerink are the joint bookrunners on the deal. 

Cortexyme Inc

Cortexyme Inc (NASDAQ:CRTX) will issue more than 4.4 million shares between $16 and $18 Thursday to raise about $91.33 million. Cortexyme targets neurodegenerative diseases such as Alzheimer’s disease.

Cortexyme was founded in 2012 and plans to list on the Nasdaq under the symbol “CRTX.” BofA Merrill Lynch and Credit Suisse are the joint bookrunners on the deal.

Mayville Engineering Company

Mayville Engineering Company (NYSE:MEC) will issue 6.25 million shares between $19 and $21 Thursday to raise about $150.9 million. With 17 manufacturing facilities, the company provides fabrication, prototyping and coating services to industrial firms.

Mayville Engineering was founded in 1945 and booked $524 million in sales for the 12 months ended December 31, 2018. It plans to list on the NYSE under the symbol "MEC." Baird, Citi and Jefferies are the joint bookrunners on the deal.

Nextcure Inc

Nextcure Inc (NASDAQ:NXTC) will issue 5 million shares between $14 and $16 Thursday to raise about $92 million. Headquartered in Maryland, the clinical-stage biotech develops immunotherapies targeting tumor environments.

NextCure was founded in 2015 and plans to list on the Nasdaq under the symbol “NXTC.” Morgan Stanley, BofA Merrill Lynch and Piper Jaffray are the joint bookrunners on the deal. 

Postal Realty Trust

Postal Realty Trust (NASDAQ:PSTL), which owns and manages property leased to the United States Postal Service, hopes to raise $100 million on Friday by selling 5 million shares at a price between $19 and $21 per share.

The Cedarhurst, New York-based company will act as a Rest Estate Investment Trust (RETI) and begin operations as soon as the IPO takes effect. The territory under its umbrella includes 271 postal facilities in 40 states. Last year, the company posted a net loss of $1.1 million on revenue of $7.7 million.

Sonim Technologies

Sonim Technologies (NASDAQ:SONM), a provider of “ultra-rugged” cell phones and accessories, plans to offer 3.6 million shares Thursday at a price between $13 and $15 to raise approximately $58 million, according to Renaissance Capital.

Founded in 2018, the San Mateo, California company develops mobile technology meant for first responders, police, firefighters and others who face extreme environmental challenges. It posted a net loss of $8.9 million in 2018 on revenue of nearly $136 million.

--Andrew Kessel contributed to this report

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive  

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