There are seven upcoming IPOs this week, and the most anticipated launch is the Etsy IPO. Etsy will be the first online marketplace to go public since Alibaba Group Holding Ltd. (NYSE: BABA) - the largest U.S. IPO ever.
This is a huge week in terms of valuable firms hitting the market. The deals are expected to raise a combined $1.2 billion.
According to Renaissance Capital, a manager of IPO-focused ETFs, four of the seven offerings this week have a market cap over $1 billion. There have only been eight companies that large to go public this year.
Here's a look at the Etsy IPO and the rest of this week's upcoming IPOs...
Etsy Inc. (Nasdaq: ETSY) is an e-commerce company that operates an online marketplace for handmade and vintage items. The firm is set to be the largest New York tech IPO in over 15 years. Etsy is looking to raise $250 million by selling 16.7 million shares in a $14 to $16 price range. It commands a market value of $1.8 billion and will begin trading on Thursday, April 16.
Investors hope the Etsy IPO jump-starts a slow year of tech IPOs so far. Only three tech companies went public in the first quarter. These included Inovalon Holdings Inc. (Nasdaq: INOV), GoDaddy Inc. (NYSE: GDDY), and Box Inc. (NYSE: BOX). Etsy has the third-largest pre-IPO valuation behind Inovalon's $3.4 billion and GoDaddy's $3 billion.
Party City Holdco Inc. (NYSE: PRTY) is a party supplies retail chain with about 900 locations across the United States. Party City underwent a leveraged buyout (LBO) in 2012 and is returning to the market thanks to increasingly strong sales. It posted $2.3 billion in sales last year - higher than any other IPO in 2015. The Party City IPO is the largest deal this week and hopes to raise $350 million by offering 21.9 million shares in a $15 to $17 price range. The company is valued at $2 billion and will hit the market on Thursday, April 16.
Money Morning Members, continue reading for four more IPOs this week. For those new to Money Morning, sign up to get full access to this article as well as other content, including a breakdown of the Etsy IPO...
Virtu Financial Inc. (Nasdaq: VIRT) is a high-frequency electronic trading firm and market maker on many exchanges. The New York-based company provides liquidity on 225 exchanges across 34 countries and offers quotes on over 5 million transactions a day. Virtu posted $723 million in 2014 sales. The trading firm is set for a $298 million deal and plans to sell 16.5 million shares in a price range of $17 to $19. VIRT has a $2.5 billion valuation and will start trading on Thursday, April 16.
Xbiotech Inc. (Nasdaq: XBIT) is developing antibody therapies for colorectal cancer and other related diseases. The company recently started two Phase Three trials for its leading antibody treatments. Xbiotech is being treated as a best efforts offering - an agreement made where the underwriter doesn't guarantee that all shares will be sold. The firm plans to raise $76 million by selling 4 million shares in an $18 to $20 price range. Xbiotech is valued at $603 million and is expected to price on Wednesday, April 15.
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Aduro Biotech Inc. (Nasdaq: ADRO) develops immunotherapies primarily for pancreatic cancer. The biotech firm's treatments had successful Phase Two trials and have since been designated as breakthrough therapies. Aduro will be this year's second-largest, non-best efforts biotech deal behind Cellectis SA (Nasdaq: CLLS). The California-based company hopes to raise $75 million by selling 5 million shares in a $14 to $16 price range. ADRO has a valuation of $1 billion and will hit the market on Thursday, April 16.
Cidara Therapeutics Inc. (Nasdaq: CDTX) plans to generate $60 million by selling 4 million shares in a price range of $14 to $16. CDTX stock will begin trading on Wednesday, April 15.
KemPharm Inc. (Nasdaq: KMPH) is set for a $52 million deal by offering 4 million shares at a $12 to $14 price range. KemPharm will hit the market on Thursday, April 16.
More on the Etsy IPO: The deal has become one of the most talked-about tech offerings in 2015. But should you buy ETSY stock when it starts trading? Here's a breakdown of the Etsy IPO - and why it's a strange company to go public...
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