IPOs + SPACs of Interest

[gfp927z]

>>> It Was a Crazy Week for IPOs. Here Are 9 Things Investors Need to Know.


Barron's

By Eric J. Savitz

Dec. 11, 2020


https://www.barrons.com/articles/ipos-had-a-crazy-week-9-things-investors-need-to-know-51607729309?siteid=yhoof2


It was already a great year for IPOs, but this past week took things to an entirely new level.

DoorDash (ticker: DASH) and Airbnb (ABNB) started the week as private companies last valued at a combined $34 billion. They ended the week as public companies together worth nearly $170 billion. The initial public offerings capture how Covid-19 has fundamentally shifted the economy—and the financial markets.

Here’s what we learned from the historic week.

Growth Is the New Value: Investors are desperate for growth, and they don’t care what it costs. Snowflake (SNOW) is growing 100% a year, a level it can’t possibly sustain. The data warehousing stock has tripled since its own IPO in September, and it’s trading at 100 times next year’s projected revenue, a figure that’s tough to justify.

I recently asked Snowflake CEO Frank Slootman about the inflated valuation. “A stock is worth exactly what somebody wants to pay for it,” he said. “Everything else is just entertainment and conjecture.”

It’s All Guesswork: Wall Street still has no great ability—or desire—to price new issues, which means that IPOs remain a wealth transfer from issuers to institutions. For DoorDash, the original price talk was pegged at $75 to $85 a share. The IPO priced at $102 and opened at $182. That gave DoorDash a value of $70 billion, generating $30 billion for IPO investors—not bad for an overnight gain.

For Airbnb, the original range was $44 to $50 a share. The stock priced at $68 and opened at $142. Airbnb finished its first trading day at $144.71, valuing the company at $100 billion—this time generating more than $50 billion in insta-profits for the IPO buyers.

Smaller, but no less remarkable was the IPO for C3.ai (AI), an artificial-intelligence software company built by Tom Siebel, famous for Siebel Systems, which Oracle acquired in 2006 for $5.6 billion. C3.ai initially expected to price its IPO around $30 to $34. Instead, the stock priced at $42, opened at $100, and closed the week around $120, giving the AI firm a market value of $13 billion. That’s like selling your house for $1 million, and discovering that the buyer flipped it one day later for $3 million.

DoorDash and Airbnb used a new modified auction process intended to eliminate big first-day stock pops. It failed. Jay Ritter, a University of Florida professor who studies the IPO market, says that DoorDash and Airbnb rank among the top five IPOs in terms of dollars left on the table. Also in the top five: the recent IPO for Snowflake.

A Good Week for SoftBank… The SoftBank Vision Fund invested $2 billion in DoorDash, a stake now worth $12 billion; parent SoftBank Group (SFTBY) is trading at a 20-year high. Just over a year ago, SoftBank was reeling from its role as the lead investor in WeWork, which pulled its IPO after a disastrous set of public disclosures. The WeWork moment all but shut down the IPO market in 2019. What a difference a year makes.

...and for Sequoia: Sequoia Capital is the largest investor in Airbnb—with a stake now worth $11.7 billion—and the second-largest investor in DoorDash, with a $9.6 billion stake. Sequoia partner Alfred Lin sits on the boards of both companies. In an interview with Barron’s, Lin said that Sequoia actually passed on a seed investment in DoorDash in 2013. “But we stayed in touch” with CEO Tony Xu, he adds. Sequoia invested in the DoorDash Series A round, and every round after. For now, Sequoia is holding on to all that stock.

The Bulls Don’t Care About Valuation: “I don’t think about valuation on any given day,” Lin told me. “I don’t think the founders of these companies think about valuation…We think about, where are the vectors of growth. How do we continue to win, how do we continue to build increasing advantages for our customers...”

The Case for DoorDash: “Yes, DoorDash is a dominant leader, with 50% market share in food delivery,” Lin says, “but they have only a small fraction of what is spent on restaurant services....And then if they achieve their vision, which is to empower local economies and local merchants, that’s an amazing potential [addressable market].”

The Case for Airbnb: “The travel industry is huge,” Lin says. “There’s travel, and experiences, or you can look at it as unlocking real estate, which is another huge total addressable market. The notion that we can now work from anywhere, study from anywhere. I complain about the small office in my house, and I’m tired of being in front of the same screen, [so] maybe I want to move to a different location....And as I get comfortable with the model, maybe I’ll let someone else rent my house when I’m gone.”

And the Case for C3.ai: “The investment community recognizes there is a huge market in commercial and industrial AI applications,” CEO Tom Siebel told me about his stock’s debut: “We’re looking at a $250 billion addressable software market—that’s bigger than a breadbox.”

There’s More to Come: Even after this year’s IPO wave, there are still more than 500 unicorns—venture-backed companies worth at least $1 billion—in the private market, according to CB Insights. That list includes potential blockbusters like payment platform Stripe, grocery delivery service Instacart, Korean e-commerce giant Coupang, and stock trading platform Robinhood, which has reportedly hired Goldman Sachs to lead its IPO. “We’re in the golden age of venture-capital exits,” says Sandy Miller, general partner at Institutional Venture Partners. “We have a very healthy IPO market and a massive M&A market...there is big supply, and big demand, because the deals have been working.”

But even a big week for IPO’s can’t change one reality: DoorDash and Airbnb were pricey before their IPOs. Now, price isn’t even part of the equation. As we wrote last week: buyers beware.

<<<

[JohnCM]

DoorDash DASH

EXPECTED OPEN $190 to $195

Sell short one and a half-hour after open.

[gfp927z]

>>> Siebel-Led C3.ai Exceeds IPO Target to Raise $651 Million


Bloomberg

Katie Roof and Crystal Tse

December 8, 2020


https://finance.yahoo.com/news/siebel-led-c3-ai-exceeds-005254137.html


(Bloomberg) -- C3.ai Inc., the software maker founded by former Oracle Corp. executive Tom Siebel, has priced its initial public offering above the marketed range to to raise $651 million, according to a people familiar with the matter.

The Redwood City, California-based company sold 15.5 million shares Tuesday for $42 apiece after marketing them for $36 to $38, said the people, who asked not to be identified because the information wasn’t public yet. Based on the outstanding shares listed in its filings, the company will have a market value of about $4 billion at $42 a share.

A representative for C3.ai didn’t immediately respond to a request for comment.

C3.ai has said that big name backers including one of its partners, Microsoft Corp., would acquire shares in a private placement as part of the listing.

Spring Creek Capital, an affiliate of Koch Industries, planned to buy $100 million in common stock while Microsoft would buy $50 million of them at the IPO price, according to an earlier filing.

Earlier this year, C3.ai formed a partnership with Microsoft and Adobe Inc. for a new customer-relationship management software seeking to combat Salesforce.com Inc.

C3.ai’s offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. The company’s shares are expected to begin trading Wednesday on the the New York Stock Exchange under the symbol AI.

<<<

[JohnCM]

Home > Boards > US Listed > Food - Beverages > DoorDash IPO (DASHIPO)
After opening pop from $102 to $120, short
Public Reply | Private Reply | Keep | Last Read Post New Msg Edit Msg (15 min left) | Previous | Next
DASHIPO
Current Price
Volume:
Bid Ask Day's Range
DASHIPO Detailed Quote


JohnCM Member Level Wednesday, 12/09/20 12:09:03 AM
Re: None
Post #
1 of 1
After opening pop from $102 to $120, short down to $97

[JohnCM]

Price per share please. Don't care about market cap.

[gfp927z]

>>> C3.ai - >>> In 2009, Siebel founded C3.ai, originally to provide enterprise software for energy management.[21] C3.ai currently provides an enterprise AI software platform and applications for multiple commercial uses, including energy management, predictive maintenance, fraud detection, anti-money laundering, inventory optimization, and predictive CRM.[22] Its customers include 3M, Royal Dutch Shell, the US Air Force, and New York Power Authority.[23][24] C3.ai was included in the 2019 “CNBC Disruptor 50” list, with a valuation of $2.1 billion.[25]

Enterprise AI software applies artificial intelligence methods, such as machine learning and neural networks, to solve complex analytical problems in commerce, industry, and government.[26] Organizations use enterprise AI software to increase efficiencies, reduce costs, and improve operations.[27] The US Air Force, for example, uses AI to predict engine failure in aircraft before a failure occurs in order to improve maintenance and increase aircraft readiness.[24]


https://en.wikipedia.org/wiki/Thomas_Siebel#Siebel_Systems

<<<

[gfp927z]

C3.ai - >>> Airbnb, DoorDash Boost Price Ranges Ahead of Mega IPO Week


Bloomberg

By Crystal Tse

December 7, 2020


https://www.bloomberg.com/news/articles/2020-12-07/airbnb-doordash-boost-price-ranges-ahead-of-mega-week-for-ipos


Airbnb valuation may hit $42 billion after pandemic bounceback

Record-setting end to 2020 with U.S. IPOs at December high

Airbnb, DoorDash Headline a Week and Month of Big IPOs


December is set to be the busiest year-end on record for initial public offerings in the U.S., with DoorDash Inc. and Airbnb Inc. ready to start trading this week in long-awaited listings.

The two startups, which are aiming to raise a combined $6.2 billion at the top of their price ranges, will propel the month’s IPO volume to all-time high, surpassing the $8.3 billion mark set in December of both 2001 and 2003, according to data compiled by Bloomberg. IPOs on U.S. exchanges have already raised a record $156 billion this year, the data show.

Both listings got an additional boost as the companies headed into the final stretch of marketing their shares. Airbnb increased the price range of its IPO in an updated prospectus on Monday, after DoorDash upped its own price range in a Friday filing. Airbnb will be valued at as much as $42 billion at the top end of the revised range. The elevated price targets put both companies among the five biggest U.S. IPOs of 2020.

Increasing the price range usually implies that the offering is being well-received among investors and demand is high. Companies are allowed to price their IPO shares up to 20% above the revised range without having to refile with the Securities and Exchange Commission.

Private companies that sat out the market chaos in the early days of the Covid-19 pandemic -- and were awaiting a final outcome in the U.S. election -- are now rushing to go public. Airbnb and DoorDash will quickly be followed by three other mega-listings that could add billions of dollars to the IPO tally.

Also on deck to go public this month are Affirm Holdings Inc., which lets online shoppers pay for purchases such as Peloton bikes in installments and online video-game company Roblox Corp. Both are likely to attain a valuation of tens of billions of dollars in its listing.

ContextLogic Inc., the parent of online retailer Wish, launched its share sale on Monday. It’s aiming to raise as much as $1.1 billion at a fully diluted valuation of $17 billion, its amended prospectus shows.

“This group of companies that you have coming out now maybe weren’t thought of initially as benefiting, but they’ve been able to show very strong results despite the coronavirus,” said Karen Snow, head of East Coast listings at Nasdaq Inc.

Airbnb is aiming to be valued at as much as $42 billion in its IPO, while DoorDash could hit a valuation of about $35 billion, based on their updated price ranges. For DoorDash, that’s more than double the private valuation it hit in a June fundraising round, after it seized on the pandemic-fueled boom in demand for meals brought to your door. Airbnb had been valued at $18 billion in April after raising additional debt to shore up its finances. The company, which was initially hit hard by global travel restrictions, has more recently seen a boom in customers seeking longer-term, domestic rentals.

COMPANY FUNDRAISING AT TOP END IPO VALUATION STATUS


DoorDash $3.1 billion $35 billion at top of range
Pricing Dec. 8,

Trading Dec. 9

Airbnb $3.1 billion $42 billion at top of range
Pricing Dec. 9,

Trading Dec. 10

C3.ai $527 million $3.29 billion (appx.)
Pricing Dec. 8,

Trading Dec. 9

ContextLogic (Wish) $1.1 billion $17 billion at top of range
Pricing Dec. 15,

Trading Dec 16,

Affirm TBD TBD Filed publicly

Roblox TBD TBD Filed publicly


Airbnb’s IPO will also be a lucrative event for many of its employees. The company has offered billions of dollars worth of stock compensation to staff, similar to Uber Technologies Inc. and other large venture-backed companies that have gone public. The IPO will make some of its longtime employees millionaires on paper.

Time and Cash

Earlier this year, technology IPOs were dominated by enterprise software companies such as Snowflake Inc., which has soared more than 200% since its listing to a $110 billion public market valuation. This month’s cluster of soon-to-be public entities -- all based in the San Francisco Bay Area -- cater to consumers stuck at home with extra time and cash on their hands.

Should the listings go well, it could signal investors are optimistic about an economic rebound after the dark days of the pandemic.

“There’s a lot of support and interest from institutional investors for companies that are impacted by Covid because the feeling is that they will recover,” said Neil Kell, Bank of America Corp.’s vice chairman of global equity capital markets.

“The mindset is not that we’re in December of 2020,” he said. “The mindset is how is it going to look a year from now.”

One enterprise software listing is also planned for this week. C3.ai Inc., founded by former Oracle Corp. executive Tom Siebel, is expected to raise as much as $527 million in its IPO.

Gauging Demand

Bankers are using new methods to execute these large share sales, incorporating technology under development for years that was well-timed for use during the pandemic, when potential buyers can’t meet the company executives and advisers in person.

Airbnb, DoorDash and Roblox have asked prospective IPO investors to fill in their deal orders via an online portal, indicating their level of interest at any desired price, according to people with knowledge of the matter, who asked not to be identified because the details are private.

The new process is aimed at helping issuers and their advisers gauge demand, especially for high-growth companies subject to wide differences in valuation among investors, the people said. The final price and share allocation are still determined by the seller.

Representatives for the companies declined to comment.

Unity Software Inc., used the same system in its September IPO. Unity sold its shares for $52 each and ended its first day of trading at $68.35. The shares closed Friday at $150.94 apiece.

<<<

[BettyCCC]

Is Figs headed for an IPO and will their legal issues be a problem?
Medical scrubs startup Figs gears up for $4B IPO amid legal battle: Sources

[gfp927z]

>>> China Halts Ant’s Record IPO, Throwing Ma’s Empire Into Turmoil


Bloomberg

By Lulu Yilun Chen and Richard Frost

November 3, 2020


https://www.bloomberg.com/news/articles/2020-11-03/ant-group-says-hong-kong-ipo-also-suspended


Shanghai exchange cites ‘major issues’ when suspending debut

Ma was called into a meeting with top regulators on Monday

China Stops Jack Ma’s $35 Billion Ant IPO From Going Forward


It was heralded as China’s answer to JPMorgan -- a homegrown financial giant on the cusp of the biggest stock-market debut the world has ever seen.

Instead, with billions on the line and an initial public offering all but sealed, Chinese authorities have abruptly thrown into doubt the future of Ant Group Co. and its celebrated founder, the billionaire Jack Ma.

Only days before the financial-technology juggernaut was to go public in Shanghai and Hong Kong -- a coup for China’s financial markets that once would have been unimaginable -- the $35 billion IPO was halted on Tuesday after Ma, China’s richest man, was summoned by regulators. In an extraordinary turn of events, authorities announced that they had belatedly discovered an array of shortcomings that, by some accounts, might require the sprawling Ant to be overhauled.

The move upends what had been one of China’s biggest business success stories, as well as what was to be a pivotal step in the development of the nation’s fast-growing capital markets.

“It’s definitely surprising,” said Mike Bailey, director of research at FBB Capital Partners. “If there is something strange going on on the macro side for China’s financial markets or in the company, that would be worrisome.”

In just a decade, Ant, an affiliate of Ma’s Alibaba Group Holding Ltd., has exploded into the world’s largest financial technology company, reshaping the lives of many ordinary Chinese. But its ascendance -- and Ma’s growing global reputation -- has also posed a threat to China’s state-run lenders and their political benefactors.

Tuesday’s developments left bankers and global investors groping for answers. The immediate fate of the many billions already tied up in the IPO is for now uncertain. Reaction in the financial market was swift, with Alibaba’s U.S.-listed shares falling and futures on Hong Kong’s benchmark also declining.

Changes Needed

Chinese authorities didn’t give much detail about the issues behind the suspension, beyond saying that the much-anticipated debut couldn’t go ahead because there had been “significant change” in the regulatory environment.

The company will have to make changes that include capital increases at its lucrative micro-lending units, according to people familiar with the matter. It will also have to reapply for licenses for the units to operate nationwide, the people added, asking not to be identified discussing a private matter.

Ant, which spun out of Alibaba in 2010, has long been seen as a champion of China’s economy and an example of how the Communist Party has allowed entrepreneurs -- especially in the technology sector -- to flourish within its top-down political system. Tuesday’s setback may cast a pall over the country’s financial markets, even as President Xi Jinping tries to create stock exchanges that can rival the U.S.

“Ant Group sincerely apologizes to you for any inconvenience caused by this development,” the company said in a message to investors. “We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges.”

There were warning signs on Monday when Ma was summoned to a rare joint meeting with the People’s Bank of China and three other top financial regulators and told his firm would face increased scrutiny and be subject to the same restrictions on capital and leverage similar to banks.

“This further reinforces the regulatory pressures building on tech giants,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. in Sydney. “It’s good news for banks, bad news for Jack Ma,” he said, referring to the competitive threat Ant poses for traditional lenders.

The company’s debut was expected for Thursday. Alibaba, which owns about a third of Ant and is listed in the U.S., tumbled 6.8% at 12:44 p.m. in New York.

Record IPO

The IPO was on pace to break records. It had attracted at least $3 trillion of orders from individual investors for its dual listing in Hong Kong and Shanghai, and in the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offering tranche.

Chinese fintech giant could have set IPO record

The fintech company’s IPO would have given it a market value of about $315 billion based on filings, bigger than JPMorgan Chase & Co. and four times larger than Goldman Sachs Group Inc.

But Ant has faced scrutiny in Chinese state media in recent days after Ma criticized local and global regulators for stifling innovation and not paying sufficient heed to development and opportunities for the young. At a Shanghai conference late last month, he compared the Basel Accords, which set out capital requirements for banks, to a club for the elderly.

And over the weekend, at a meeting of the Financial Stability and Development Committee led by Vice Premier Liu He, officials stressed the need for fintech firms to be regulated.

Ant dominates China’s payments market via the Alipay app. It also runs the giant Yu’ebao money-market fund and the country’s largest online consumer-lending platform. Other businesses include a credit-scoring unit and an insurance marketplace.

<<<

[gfp927z]

>>> Datto Stock Jumps 20% in Market Debut Before Falling Back


Barron's

By Luisa Beltram

Oct. 21, 2020


https://www.barrons.com/articles/software-stock-set-to-trade-after-the-ipo-prices-at-the-top-of-the-range-51603291999?siteid=yhoof2


Datto provides business-continuity software, including backup and disaster recovery.

Shares of Datto Holding rose as much as 20% in its first day of trading.

The stock opened at $32 Wednesday and hit a high of $32.36. Shares recently changed hands at $28.05, up 3.9%, in afternoon trading.

Datto’s (ticker: MSP) decent performance comes after the backup-software company collected roughly $550 million late Tuesday. The company sold 22 million shares at $27 each, the top of its $24-$27 price range.

Morgan Stanley, BofA Securities, Barclays, and Credit Suisse are underwriters on the deal.

Datto is the latest software company to go public. Both Asana (ASAN), which offers cloud-based project-management software, and Snowflake (SNOW), a cloud software company, made their debuts in late September. McAfee, the cybersecurity company, is expected to price its offering Wednesday night and begin trading on Thursday.

Founded in 2007, Datto provides business-continuity software, including backup and disaster recovery, that helps companies secure their data. Datto’s software is delivered through a managed-service-provider, or MSP, channel to small and medium-size businesses. The company had 17,000 MSP partners as of June 30, according to its prospectus. Datto said it helped restore more than 200 million software as a service objects in 2020, the prospectus said.

The company reported $10.1 million in profit for the six months ended June 30 on $249.1 million in revenue. This compares with $25.7 million in losses a year earlier on $215 million in revenue. Long-term debt stood at $577 million as of June 30. It has 1,653 employees as of June 30.

With 157,548,740 shares outstanding, Datto has a roughly $4.3 billion market cap, at $27 a share.

Vista Equity Partners acquired Datto in 2017 for $1.3 billion and merged the company with Autotask. Vista will own 70.7% of Datto after the IPO, while Austin McChord, Datto’s founder, will have 13%.

The Datto IPO comes just days since Robert Smith, Vista’s CEO, reached a $140 million settlement with the Justice Department, The Wall Street Journal reported. The nonprosecution agreement ends a yearslong U.S. tax investigation and calls for Smith to admit tax fraud as well as not properly filing foreign bank account reports, according to the Journal.

No Vista entity is part of Smith’s settlement with the DOJ, which is considered a personal tax matter, Barron’s has learned. Neither Vista, nor any of its funds or portfolio companies, were involved or of interest or under investigation by the DOJ, Barron’s has learned.

Brian Sheth, Vista’s president and co-founder, is now looking to leave the firm, Barron’s has learned. The executive has been with Vista since he was 23 years old. Sheth has wanted to retire for some time but had to wait until Smith signed the nonprosecution agreement with the DOJ, Barron’s has learned. The timing of Sheth’s departure is unclear. He has noncompete and nonsolicitation agreements with Vista and with Dyal Capital Partners, which owns a minority of Vista, Barron’s has learned.

<<<

[gfp927z]

Datto Holding (MSP) - >>> Could This IPO Be the Next Shopify?

Datto is on a mission to bring big IT to small and medium businesses. Here's what investors should look for.


Motley Fool

by PT Lathrop

Oct 30, 2020


https://www.fool.com/investing/2020/10/30/could-this-ipo-be-the-next-shopify/


Investors have seen time and again how some platforms can turn small businesses into big profits. Shopify (NYSE:SHOP) was a pioneer in helping small businesses establish themselves online, and its stock has soared more than 3,000% over the last five years. Square (NYSE:SQ) cut its teeth by empowering small business with payment systems and services. Now meet Datto (NYSE:MSP), which went public on Oct. 21 with a mission to bring big IT solutions to small and medium businesses (SMBs). Unlike many recent IPOs, the company just turned profitable . Here are three key indicators that could give investors confidence that Datto's story and stock has a bright future.


1. Landing more MSPs

Datto's ticker, MSP, is an homage to its unique strategy. SMBs often can't manage their own information technology needs. Imagine you own a local chain of bakeries, or a dentistry practice. You want to access and protect your and your customers' data easily, but you didn't acquire networking and cybersecurity skills at culinary or dental school. Additionally, your business may not be big enough to invest in your own IT department, with multiple contracts from multiple vendors.

For these reasons, many small businesses turn to "managed service providers," or MSPs, essentially one-stop shops that provide IT solutions. The total addressable market here is very big and growing. According to Datto's S-1 filing, SMBs spend $159 billion on IT annually. We can reasonably expect that figure to keep growing, since all businesses need software, data storage, and security. 125,000 MSPs currently manage about 10% of that market .

Datto offers a data storage and security platform to MSPs, which they in turn can offer their customers. This model allows Datto's customers more efficiency, since they can consolidate much of their work onto Datto's platform. It also allows MSPs to focus more of their time on growing their business relationships, rather than getting bogged down troubleshooting: They have Datto for that. Essentially, Datto is the MSP for MSPs.

This strategy seems to be paying off. Datto currently has 17,000 MSP customers. That's a nice diverse customer base and healthy 14% of the market. A growing market also invites growing competition. If Datto is going to be a multibagger from its current $4.4 billion market cap, it needs to not only keep market share, but also grow its market share


2. Expanding with MSPs

Datto has shown its ability to grow relationships so far. Its S-1 filing shows a dollar-based net retention rate of 115% for the 12 months ending June 30, 2020 and 119% in the previous fiscal year. For comparison, the more enterprise-focused cloud storage company, Box, recently reported a 106% net retention rate for the year ending July 31, 2020. . Datto has a three-pronged approach to growing revenues with existing MSP partners.

The first involves helping MSPs get Datto services to even more SMB customers. Datto invests heavily into this initiative. If offers a wide variety of tools, from books to videos, that help MSPs with marketing, pricing, customer service, and even hiring. Datto prices its technology to MSPs in tiers, and as the MSPs expand or bring new business into the Datto ecosystem, it can push them into higher pricing tiers . More on this later.

The second opportunity is to offer more solutions to the MSP business. One key product here is Datto's "Autotask Professional Services Automation," (PSA) -- essentially, software that helps MSPs triage, assign, and track workflow. There is plenty of competition in this arena as well. Datto has a bit of network effect going for it: If an MSP is already tied into the Datto platform for its customers, it might be more likely to use Datto's PSA software as well.

The third growth driver lies in expanding Datto's solutions for SMBs. The company's current focus is backup and recovery service, helping that imaginary dental office access your records even when their systems crash. That's a smart place to start, since different businesses all share that same need. For Datto to grow into a megacap cloud king, investors should look for new successful products and services for SMBs, additional business solutions for MSPs, and that net retention rate to stay above 100% for the foreseeable future.


3. Top line, bottom line

Since 94% of Datto's revenue comes from subscriptions, the company tends to highlight its annual run-rate revenue, the yearly value of all its current subscriptions . Whether investors chose to use that metric or the slightly more inclusive net revenue, they should hope for some acceleration in top-line growth. Datto grew its year-over-year subscription revenue nearly 20% for the six months ending June 30.

That kind of revenue growth is great ... unless you're a cloud software company. Other companies in the broader industry are posting revenue growth rates of 65% and even 121% . Granted, those companies, JFrog and Snowflake, come at much higher premiums. Nonetheless, if Datto is going to grow to be the dominant cloud services provider for SMBs through their network of MSPs, it may need get those network effects compounding and grow revenue above 19%.

Datto has not garnered as much media attention as other IPOs. That might work in investors' favor. Small companies will continue to need more and more technology solutions to compete. Most small businesses will look to their local MSP partners. If Datto emerges as the top dog in this space in the long term, its potential could easily turn this $4 billion company into a 10-bagger.

<<<

[gfp927z]

>>> Datto Holding Corp. (MSP) provides cloud-based software and technology solutions for delivery through the managed service provider (MSP) channel to small and medium businesses in the United States and internationally. Its Unified Continuity products include Business Continuity and Disaster Recovery that protects servers and workstations, and minimize downtime; Cloud Continuity, an image-based continuity solution for Windows-based laptops and desktops; SaaS Protection, an automated and secure backup and restoration product; Workplace, a cloud-hosted file sync and share solution, which enable end-users to synchronize files across platforms, including mobile devices; and File Protection, an MSP-managed secure and scalable backup product that enables MSPs to protect and recover files and folders on workstations and laptops. The company's networking Products comprise access points, switches, edge routers, and managed power devices. Its business management products that consists of Autotask Professional Services Automation, an IT business management product; and remote monitoring and management. The company was formerly known as Merritt Topco, Inc. and changed its name to Datto Holding Corp. in January 2020. Datto Holding Corp. was incorporated on 2017 and is headquartered in Norwalk, Connecticut.

<<<

[JohnCM]

For the six months ended June 30, the company recorded net income of $76.1 million on revenue of $552.6 million, after a net loss of $5.2 million on revenue of $255.4 million in the same period a year ago.

[gfp927z]

>>> Array Technologies (ARRY) stock surges in public debut, as solar company is valued at $2.8 billion at IPO price


MarketWatch

Oct. 15, 2020

By Tomi Kilgore


https://www.marketwatch.com/story/array-technologies-stock-surges-in-public-debut-as-solar-company-is-valued-at-28-billion-at-ipo-price-2020-10-15?siteid=yhoof2&yptr=yahoo


Shares of Array Technologies Inc. ARRY, 7.26% charged out of the gate, as the first trade was 34% above where the upsized initial public offering priced. A total of 47.5 million shares were sold in the IPO, as the New Mexico-based maker of ground-mounting systems used in solar energy projects sold 7 million shares to raise $154 million and a selling shareholder sold 40.5 million shares. The IPO priced at $22, above the top of the expected range of $19 to $21. With about 127.0 million shares outstanding, the IPO pricing valued the company at about $2.79 billion. The selling shareholder, a parent entity of the company controlled by Oaktree Capital, has increased the amount it planned to sell a number of times, starting at 26.75 million shares on Oct. 7, to 38.00 million shares on Oct. 13 and to 40.50 million shares late Wednesday. For the six months ended June 30, the company recorded net income of $76.1 million on revenue of $552.6 million, after a net loss of $5.2 million on revenue of $255.4 million in the same period a year ago. Goldman Sachs, J.P. Morgan, Guggenheim Securities and Morgan Stanley were the lead underwriters. The company went public at a time of good demand for IPOs, as the Renaissance IPO ETF IPO, 0.61% has rallied 28.7% over the past three months while the S&P 500 SPX, 0.55% has gained 7.3%.

<<<


>>> Array Technologies, Inc. (ARRY) provides solar tracking solutions and services for utility-scale projects. Its products include DuraTrack HZ v3, a single-axis solar tracking system; and SmarTrack, a machine learning software that automatically adjusts module angles in response to weather and site conditions. The company was founded in 1989 and is based in Albuquerque, New Mexico with additional offices in Europe, Central America, and Australia. <<<

[JohnCM]

If you see any activity please post on the SPAC board.

Quote:
The Forest Road Company's SPAC Forest Road Acquisition files for a $250 million IPO

Shaquille O'Neal, former Disney executives, and Martin Luther King Jr.'s son target $250 million SPAC launch

October 8, 2020
FRX.U

Forest Road Acquisition, a blank check company formed by Forest Road targeting TMT businesses, filed on Thursday with the SEC to raise up to $250 million in an initial public offering.

The New York, NY-based company plans to raise $250 million by offering 25 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable $11.50. At the proposed price, Forest Road Acquisition would command a market value of $313 million.

The company is led by CEO and Director Keith Horn, founder and managing member of investment advisory firm Loring Capital Advisors, and Chairman and CIO Zachary Tarica, founder and CEO of specialty financing firm Forest Road. Forest Road Acquisition plans to target the TMT industry, with specific focus on the new audience aggregation platforms transforming the TMT landscape, premium intellectual property driving significant value expansion, and other broad themes.

Forest Road Acquisition was founded in 2020 and plans to list on the NYSE under the symbol FRX.U. Cantor Fitzgerald is the sole bookrunner on the deal.

Forest Road Acquisition Filed Terms, NYSE: FRX.U
Blank check company formed by Forest Road targeting TMT businesses.

Industry: SPAC
FRX.U

We are a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. We currently intend to concentrate our efforts on identifying businesses in the technology, media, and telecommunications (“TMT”) space that align with the following macro themes: new audience aggregation platforms transforming the TMT landscape; premium intellectual property (“IP”) driving significant value expansion; consumer behavior fundamentally changing; cutting-edge technologies facilitating new offerings; evolving ecosystem reshaping traditional business models; and companies in need of capital due to idiosyncratic market conditions. We will seek to capitalize on the significant experience, relationships, and contacts of our officers and directors, The Forest Road Company, the managing member of our Sponsor (“Forest Road”), and strategic advisors to complete our initial business combination. We believe that our team’s distinguished and long-term track record of sourcing, acquiring, and building next-generation media and entertainment platforms, along with other investments and operational experience in consumer-facing industries, will provide us with differentiated consumer insights and sourcing opportunities.

IPO News for Forest Road Acquisition
The Forest Road Company's SPAC Forest Road Acquisition files for a $250 million IPO 10/08/20

IPO Data
IPO File Date 10/08/2020
Price Range $10.00 - $10.00
Offer Shares (mm) 25.0
Deal Size $mm) $250
Lock-Up Date IPO Pro Only
Street Research IPO Pro Only
Underwriters
Cantor Fitzgerald
Guggenheim Securities
Company Data
Headquarters New York, NY
Founded 2020
Employees 4
Websitewww.forestroadco.com
IPO Market Benchmark (IPOUSA)

[JohnCM]

It's official. Airbnb IPO.

[JohnCM]

pretty cool.

[gfp927z]

>>> Defiance ETFs Launches First SPAC ETF


Yahoo Finance

October 1, 2020


https://finance.yahoo.com/news/defiance-etfs-launches-first-spac-170000991.html


SPACs give emerging companies both flexibility and control, while investors finally have open access to some of the biggest investment deals in the market. Expanding on this concept, Defiance ETFs has announced the launch of the first SPAC ETF, the Defiance Next Gen SPAC Derived ETF (SPAK), which is now available for trading. SPAK tracks the Indxx SPAC & NextGen IPO Index.

SPACs are companies with no commercial operations that are established solely to raise capital from investors for the purpose of acquiring one or more operating businesses. SPAK joins Defiance’s growing suite of first-mover thematic ETFs, including (FIVG) (5G ETF) and (IBBJ) (Junior Biotech ETF).

“The Defiance team is excited to bring to market the first SPAC ETF (NYSE: SPAK). Picking the winners of individual SPACs can be very difficult, however, the ETF structure allows investors to access the most liquid SPAC IPOs in a diversified basket. SPAK allows both financial advisors and retail investors to participate in an IPO private equity style of investing, which until now, was only available to large financial institutions,” a statement issued by Defiance ETFs earlier this morning.

Regarding the index, the Indxx SPAC & NextGen IPO Index is a passive rules-based index that tracks the performance of the common stock of newly listed Special Purpose Acquisitions Corporations (“SPACs”), ex-warrants, and initial public offerings (“IPOs”) derived from Special Purpose Acquisitions Corporations.

Why Invest in SPACS?

Elaborating more on why investors can look to SPACS, the IPO process is institutionalized, cumbersome, and inflexible, especially in adapting to the Covid-19 reality where virtual roadshows are less effective, and uncertainty is rife. With SPAC, there’s an alternative route for a company to go public, which can be cheaper, quicker, more transparent, and involves agreements and processes more within the purview and control of the company.

SPACs have grown in popularity as they increasingly attract high-worth, credible sponsors. As the quality of their founders and the success of their merger companies grow, so does their integrity in the wider investment community. So far in 2020, SPACs have raised $22.5 billion to spend on deals, exceeding the record $13.6 billion raised in 2019.

Delving deeper into the SPAK ETF, picking the winners of individual SPACs can be very difficult, however, the ETF structure allows investors to access the most liquid SPAC IPOs in a diversified basket. SPAK allows both financial advisors and retail investors to participate in an IPO private equity style of investing which is usually only available to large financial institutions. The ETF currently has 29 holdings, rebalanced on a quarterly basis. An 80% weighting is applied to IPO companies derived from SPACs and 20% is allocated to common stock of newly listed Special Purpose Acquisition Companies (“SPACs”), ex-warrants. Newly IPO companies derived from SPACs will be screened monthly and SPACs quarterly.

SPAK is distributed by Foreside Fund Services, LLC. For more information, visit https://www.defianceetfs.com/

This article originally appeared on ETFTrends.com.

<<<