MYT Netherlands Parent B.V. (MYTE proposed) – the parent of Mytheresa.com, the German luxury fashion online retailer – leads a $2.3 billion IPO Calendar in a holiday-shortened week that includes the U.S. presidential inauguration. On Monday, the U.S. stock markets were closed for Martin Luther King Jr. Day, the federal holiday that honors the slain civil rights leader on his birthday. So Wall Street is facing a four-day work week. No doubt, though, some IPO bankers were working behind the scenes over the long holiday weekend on this week’s eight deals – five traditional IPOs and three SPAC offerings. (Editor’s Note: This column was updated Wednesday morning, Jan. 20, 2021.)
Worth noting: Four of this week’s five traditional IPOs are by profitable companies.
U.S. stock futures rose on Tuesday before a flood of earnings reports and testimony by Janet Yellen at her Senate confirmation hearing as President-elect Joe Biden’s nominee for U.S. Treasury secretary, The Wall Street Journal reported. Yellen, who was the Federal Reserve chair in President Barack Obama’s administration, is expected to support higher spending for coronavirus relief.
Wall Street will keep its eyes on Washington, where the inauguration is scheduled on Wednesday for Biden, who will be sworn in as the 46th president of the United States, and Vice President-elect Kamala Harris, who will make history as the first woman, the first African-American and the first South Asian-American, to hold the office. The National Guard is out in force with 25,000 troops after a violent mob of Trump supporters stormed the U.S. Capitol on Jan. 6th.
IPO investors are circling MYTE as “the deal of the week,” inspired by the POSH moonshot last week.
“After POSH, my guys want this,” one Wall Street veteran said, when asked about MYTE.
Poshmark, Inc. (POSH), a popular social platform for selling gently used and new designer clothing, shoes, accessories and home décor, priced its IPO on Wednesday night, Jan. 13th. The IPO of just 6.6 million shares was priced above range at $42. On Thursday, Jan. 14th, POSH jumped nearly 142 percent on its first day of trading to close at $101.50 on the NASDAQ. The stock ended the week at $83.01, up 98 percent from its IPO price. (A moonshot occurs when a stock doubles its IPO price on the first day of trading.)
A Fashion Fix in Many Languages
Alexander McQueen, Gucci and Prada are among more than 200 designer brands available online at Mytheresa.com – often in exclusive collections for women, men and children. Its mobile-first app and personalized service in multiple languages helped to drive online sales during the COVID-19 pandemic. Mytheresa.com represented 97 percent of net sales in fiscal 2020, the prospectus says. The company’s roots as a global luxury fashion retailer go back more than 30 years to the opening of Theresa, its flagship women’s wear store in Munich. The company also has a men’s store.
MYT Parent Netherlands N.V. (MYTE proposed), also known as Mytheresa, reported revenue of $582.5 million and net income of $24.8 million for the last 12 months, according to financial statements in the prospectus.
The company, based in Munich, increased the price range of its IPO by 47 percent early Tuesday to $24 to $26, up from $16 to $18, on the same number of shares: 15.7 million American Depositary Shares (ADS). Mytheresa plans to price its IPO on Wednesday night, Jan. 20th, to trade Thursday, Jan. 21st. This is a New York Stock Exchange listing. Morgan Stanley and J.P. Morgan are the joint book-runners.
If priced at the mid-point of its new range, the MYTE IPO would raise $391.25 million. About $206 million of the IPO proceeds will be used to pay off debt, according to the prospectus.
The market valuation is $2.1 billion, assuming the IPO is priced at $25, the mid-point of its newly increased range.
The Week Ahead
In addition to the MYTE IPO, this week’s calendar includes a Florida home builder, a Chinese e-vaping cigarette company, a Brazilian investment company, a small indoor-farming products company, and a handful of blank-check companies or SPACs. Let’s take a look at these deals, organized by pricing and trading dates.
Tuesday night pricing for Wednesday trading:
FoxWayne Enterprises Acquisition (FOXWU proposed) is a healthcare-focused SPAC that intends to search for targets in the biotech and telemedicine areas. The company is based in New York.
This is a SPAC IPO of 5 million units at $10 each to trade on the NASDAQ. Kingswood Capital Markets, a division of Benchmark Investments, is the sole book-runner. (Update: FoxWayne Enterprises Acquisition priced its IPO according to the terms in its prospectus on Tuesday night, Jan. 19th, to start trading Wednesday, Jan. 20th. Three other SPACs were also priced Tuesday night to start trading Wednesday, Jan. 20th: Legato Merger (LEGOU), Queen’s Gambit Growth Capital (GMBTU) and TZP Strategies Acquisition (TZPSU). See our IPO Calendar and the company profiles in our IPO Index for details.)
Wednesday night pricing for Thursday trading:
Dream Finders Homes (DFH proposed), based in Jacksonville, Florida, is one of the nation’s fastest-growing private homebuilders, in terms of revenue and home closings since 2014. The company designs, builds and sells homes in high-growth markets, including Jacksonville; Orlando, Denver, the Washington, D.C., metro area, Austin, Texas, and Charlotte and Raleigh in North Carolina.
This IPO is attracting healthy interest from veteran IPO investors, who cite the excellent growth this year of the home-building sector.
Dream Finders Homes is profitable. The company reported revenue of $926.1 million and $57.2 million in net income for the last 12 months, according to the prospectus.
This is an IPO of 9.6 million shares at $12 to $15 each to trade on the NASDAQ. BofA Securities, RBC Capital Markets, BTIG, Builder Advisor Group and Zelman Partners are the joint book-runners.
MYT Netherlands Parent B.V. (MYTE proposed) – The Munich-based retailer, whose parent is registered in the Netherlands, is owned by Ares Management, a private equity firm, and the Canada Pension Plan Investment Board. They bought Neiman Marcus in 2013 and then spun off Mytheresa for themselves in a move contested by debtholders, WWD reported. Ares Management and the Canada Pension Plan Investment Board will still control about 80 percent of the company after the IPO.
Mytheresa.com was described as the “billion-dollar crown-jewel asset” of Neiman Marcus in a bond trustee’s lawsuit filed in 2019, according to Retail Dive.
RLX Technology (RLX proposed), based in Beijing, says it is the No. 1 branded e-vapor company in China. The company develops e-vapor products and sells them in its retail stores. RLX Technology reported revenue of $400 million and net income of $9 million for the last 12 months, according to the prospectus.
This is an IPO of 116.5 million American Depositary Shares (ADS) at $8 to $10 each to trade on the NYSE. Citigroup is the book-runner.
Thursday night pricing for Friday trading:
Patria Investments (PAX proposed) was formed in 1988 as an M&A and financial advisory firm in Brazil in partnership with Salomon Brothers. Since 2010, Patria Investments has been engaged in a partnership with Blackstone, according to the prospectus. Patria Investments reported $118.5 million in revenue and $65 million in net income for the past 12 months, according to the prospectus.
This is an IPO of 26.7 million shares at $14 to $16 each to trade on the NASDAQ. J.P. Morgan, BofA Securities, Credit Suisse and Goldman Sachs are the joint book-runners.
Week of Jan. 18 Pricing
Agrify (AGFY proposed), an indoor farming equipment and supplies company, is tentatively scheduled to price its IPO of 2.6 million shares at $8 to $10 each during the week of Jan. 18th. This is a NASDAQ listing. Maxim Group LLC and Roth Capital Partners are the joint book-runners. (Update: On Tuesday afternoon, the pricing date for Agrify was confirmed for next week – pricing on Monday, Jan. 25th, to trade Tuesday, Jan. 26th. Please see the updated trade date on the IPO Calendar.)
Two SPACs are also listed as scheduled to price sometime this week:
* Growth Capital Acquisition (GCACU proposed) intends to search for target companies with global growth and enterprise values ranging from $300 million to $1.5 billion. This is an offering of 12.5 million units at $10 each to trade on the NASDAQ. Maxim Group is the sole book-runner. This SPAC is based in New York.
* TZP Strategies Acquisition (TZPSU proposed) is focused on targets in three sectors: technology services, business services, and consumer products and services. This is an offering of 25 million units at $10 each to trade on the NASDAQ. Credit Suisse is the sole book-runner. This SPAC is based in New York. (Update: TZP Strategies Acquisition priced its IPO according to the terms in the prospectus on Tuesday night, Jan. 19th, to start trading Wednesday, Jan. 20th.)
Last Call
Three IPOs have been scheduled so far for the final week of January. But more names are likely to climb onto the IPO Calendar for this week and next as the filings continue to flow in over the transom of the U.S. Securities and Exchange Commission.
Stay tuned.
(For more information on these companies, please see the IPO profiles on IPOScoop.com.)
(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.