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IPO Update: 2019

IPO Update: 2019

We’re only halfway through the year, but it’s already been a big IPO year for unicorns. With just two quarters left, we’re checking in on the companies that have already gone public this year, ones that are queued up, and the ones who are still up in the air.

* = MV Portfolio Company

Launched IPOs

Lyft*

Category: Consumer Services

Date: March 29, 2019

IPO Price: $72

Opening: $87.33

High: $88.60

Closing: $78.29

After months of speculation about which ridesharing company would IPO first, Lyft beat out Uber to make their public market debut in late March at $24 billion valuation. While the stock opened above the company’s set IPO price, it’s since trended down. Lyft announced strong earnings results, a clearer path to profitability, and moved the lockup expiration of nearly 260 million insider shares from September 24th to August 19th of this year. Now that both companies have gone public, there is speculation that the price war could be over, which could mean higher revenue for both companies.

Zoom

Category: SaaS

Date: April 18, 2019

IPO Price: $36

Opening: $65

High: $66

Closing: $62

While Zoom’s public offering received less hype than many others in this year’s cohort, it came out of the gate strong. Not only did its IPO price of $36 give a $9.2 billion valuation – nine times that of its preceding private valuation – but it opened 80% higher than the set IPO price. Stocks have continued to perform well above the IPO price since.

Pinterest*

Category: Social Network

Date: April 18, 2019

IPO Price: $19

Opening: $23.75

High: $25.18

Closing: $24.40

Pinterest, dubbed the “anti-social” social media platform, made its market debut in April, opening at 25% higher than the IPO price. After a dip in price in May, the company exceeded expectations in their recent Q2 earnings report, reaching $261 million in revenue, $25 more than expected, and incurring $26 million in losses, $13 million less than expected.

Beyond Meat

Category: Meat Alternatives

Date: May 2, 2019

IPO Price: $25

Opening: $46

High: $72.95

Closing: $65.75

If Beyond Meat’s IPO is any indication, meat-alternatives are having a major moment. The company’s stock jumped 163% from $25 to $65 in its May IPO. Since then, their shares have continued to climb as more chains have begun adding their alternative meat products to their menus.

Uber*

Category: Consumer Services

Date: May 10, 2019

IPO Price: $45

Opening: $42

High: $45

Closing: $41.57

At a staggering $82 billion valuation, Uber was expected to have one of the largest IPOs ever for a tech company. Unfortunately, Lyft’s less than stellar IPO may have cast a shadow on their fellow ridesharing company. Despite their massive valuation, Uber opened under their IPO price, and has generally traded below that since then. Most recently, the company reported losses exceeding $5 billion in Q2 2019, with revenue coming in at just above $3 billion. If Lyft continues to perform well, these results suggest that Lyft may beat Uber to profitability.

IPO Lock-Up Period: What is it, and Why Does it Matter?

CrowdStrike

Industry: Cybersecurity

Date: June 12, 2019

IPO Price: $34

Opening: $63.50

High: $67

Closing: $58

CrowdStrike, provider of cloud-based cybersecurity software, was another strong IPO this year, opening 87% higher than their IPO price of $34. Since the unicorn’s June listing, share prices have trended upwards, and are currently trading ~150% higher than their IPO price.

Fiverr

Category: Freelance Services Platform

Date: June 13, 2019

IPO Price: $21

Opening: $26

High: $41.68

Close: $39.90

After a slow start for gig-economy companies in the 2019 IPO landscape, Israel-based Fiverr, a marketplace that links up freelancers with gigs, made a promising market debut. Opening at almost 24% above their IPO price, Fiverr shares popped as much as 90% on opening day. Since launching, prices have dropped, but have not closed below the IPO price.

Chewy

Category: E-commerce

Date: June 14, 2019

IPO Price: $22

Opening: $36

High: $41.34

Closing: $34.99

An independent subsidiary of PetSmart, Chewy is an online retailer offering pet food and supplies. Pricing above range at $22, Chewy closed at $34.99, raising $1 billion in the process. Notably, PetSmart will remain the majority owner of Chewy, with a 70% stake. And 77% controlling interest. Since going public, Chewy shares have remained above their IPO price.

Slack*

Category: SaaS

Date: June 20, 2019

IPO Price: $26

Opening: $38.50

High: $42

Closing: $38.62

Following in Spotify’s footsteps, Slack went the direct listing route, rather than pursuing a traditional IPO. While a direct listing can be a riskier bet, in Slack’s case, it paid off for pre-IPO shareholders. With a reference price of $26, Slack shares opened $38.50. Considering that shares closed at nearly the same amount, that’s a pretty efficient market.

What’s the Difference Between an IPO and a Direct Listing?

Speculated IPOs

Peloton

Category: FitTech

Most Recent Valuation: $4 billion

FitTech unicorn maker of fancy fitness equipment, Peloton, reportedly filed confidentially for an IPO in June. The company’s last round of funding was a $550 million Series F that pushed the company to a reported  $4 billion valuation. At present, there has been no date set for an IPO and no public filing.

The We Company (WeWork)

Category: Co-working

Most Recent Valuation: $47 billion

The We Company (previously known as WeWork), submitted a confidential S-1 filing in December 2018, and is reportedly targeting an IPO date in September. Most recently, it was reported that JPMorgan is teed up to lead the IPO.

Airbnb*

Category: Consumer Services

Most Recent Valuation: $31 billion

Another sharing economy OG, Airbnb has been making moves to ready the company for an IPO this year. Although, according to co-founder Nathan Blecharczyk, that doesn’t necessarily mean the company will go public this year. Most recently, the company acquired Urbandoor, a platform focused on extended stays for corporate clients

Postmates*

Category: Consumer Services

Most Recent Valuation: $2 billion

While Postmates did file confidentially for an IPO in February, the company has also explored alternative options. In July, it was reported that the company had considered a sale to Uber or DoorDash, two food-delivery competitors. Currently, there has been no public S-1 filing.

Robinhood*

Category: FinTech

Most Recent Valuation: $7.6 billion

After $323 million Series E round, free stock-trading startup, Robinhood, is now valued at more than $7 billion. Last September, Robinhood CEO, Baiji Bhatt announced at TechCrunch Disrupt SF that that company was in search of a CFO in preparation for an eventual public listing. Since then, the company has hired a CFO, but there has been no word on a confidential IPO filing or target listing date.

Palantir*

Category: Information Technology

Most Recent Valuation: Unknown

While Palantir’s public debut has been highly anticipated, it doesn’t look like the stealthy data-mining company will be making it to the public market this year. According to reporting by Bloomberg in May, while the company is doing very well, it still has work to do in building out their sales and finance teams to handle the IPO. While the company doesn’t seem to be in any hurry, when it does go public, there’s no doubt that it will be a major event.

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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.