IPO Outlook: Insurance Cos., Mortgage Providers, Leslie's Pool Supplies Highlight This Week's Offerings

The week of Oct. 25 has 11 companies that are currently listed to IPO for the week. Here is a brief look at each of the company's planning to go public this week. Detailed articles to come on some of the larger names later in the week.

Leslie’s Inc.: Pool and spa care industry leader Leslie’s LESL plans on selling 40 million shares at a price point of $14 to $16.

The company is the largest direct-to-consumer brand in the $11 billion pool and spa care industry. Leslie’s has a physical network larger than the sum of its 20 largest competitors. The company’s digital sales are 5x its next largest competitor.

Gatos Silver: Silver producer, Gatos Silver GATO plans on selling 18.8 million shares at a price point of $7 to $9.

The company owns the majority of the Cerro Los Gatos Mine in Mexico through a joint venture with Dowa. Gatos plans on purchasing an additional 18.5% stake in the joint venture and retiring debt with proceeds from the IPO.

Biodesix Inc.: Diagnostic solutions company Biodesix Inc. BDSX plans on going public with a 4.2 million share offering at a price point of $17 to $19.

The company gets revenue from diagnostic tests and services for biopharmaceutical companies.

Biodesix had revenue of $24.6 million in fiscal 2019 and reported a net loss of $30.7 million.

Preliminary revenue for the third quarter of 2020 forecasts revenue to come in a range of $8.7 million to $9.2 million, versus $3.9 million in the same period last year. Covid-19 test revenue is $5.3 million to $5.6 million for the third quarter.

Biodesix is a partner with Bio-Rad Laboratories BIO on a Covid-19 diagnostic test. Bio-Rad shares are up 56% in 2020.

Root Inc.: Hoping to revolutionize the $266 million personal insurance market, Root Inc ROOT is mobile first today.

Root is licensed in 36 states and hopes to be licensed in all 50 states by early 2021.
In 2019, Root Inc reported revenue of $290.2 million, a large increase from the $43.3 million the prior year.

Revenue in the first six months of 2020 was $245.4 million.

Root plans on selling 24.1 million shares in a range of $22 to $25 in one of the week’s potential largest IPOs.

MediaAlpha Inc.: White Mountain Insurance Group WTM backed MediaAlpha MAX plans on going public with a 9.25 million share offering. The company plans on offering shares at a price range of $18 to $20 with White Mountain selling 2.99 million shares.

The company helps insurance carriers and distributors target potential customers. The direct to consumer market is the fastest growing in the insurance distribution channel worth $2 trillion. Insurance customers spent $144 billion on acquisition spending in 2019.

Revenue was $408 million in fiscal 2019, a 37.4% year-over-year increase. Net income was $17.8 million for fiscal 2019.

Six month revenue in 2020 was $243.1 million, a 41.8% year-over-year increase.
MediaAlpha has 15 of the 20 largest auto insurance carriers on its platform. Property and casualty insurance represented 60% of 2019 revenue.

Allegro Microsystems Inc.: Integrated circuit manufacturer Allegro Microsystems ALGM is the number one supplier for ICs in the automotive market.

The company believes its total addressable market size is $14.7 billion and could be worth $20 billion by 2024.

Allegro Microsystems reported revenue of $650.1 million fiscal 2020 and $724.3 million in fiscal 2019. Net income was $37.1 million in fiscal 2020.

Allegro Microsystems recently acquired Voxtel, a LiDAR company. The automotive LiDAR market is expected to grow from $139 million in 2020 to $6.8 billion in 2032.

The company plans on selling 25 million shares at a price point of $12 to $14.

Mavenir: Mobile network software provider Mavenir MVNR is going public and hoping to capitalize on the growth of 5G networks.

The company counts 250 global wireless service providers as customers, powering over 4 billion subscribers in 120 countries.

Mavenir powers 17 of the top 20 global Tier 1 wireless service providers, including 100% of the Tier 1 providers in the U.S.

Estimates call for 5G accounting for 45% of total mobile data in 20215. Estimates expect 5G connected devices to rise from 11 billion in 2018 to 21 billion in 2023.

In 2019, Mavenir reported revenue of $427.4 million, a year-over-year increase of 8.7%. The net loss was $81.0 million in 2019.

The company plans on selling 13.6 million shares at a range of $20 to $24.

AmeriHome Inc.: The third largest correspondent mortgage lender AmeriHome AHM plans on selling 14.7 million shares at a price point of $16 to $18.

The company has grown in the highly fragmented market, ending the first six months of 2020 with an 8% market share.

AmeriHome sources residential mortgage loans and sells them to third party investors. The company is an approved seller for Fannie Mae and Freddie Mac. AmeriHome is licensed to originate loans in 46 states and Washington D.C.

Over the last 12 months, AmeriHome had volume of $54 billion in loan originations.

AmeriHome has posted 21 consecutive quarters of profitability.

Caliber Home Loans: According to the IMF, Caliber Home Loans HOMS is the only mortgage originator that has a top three position in retail, wholesale and correspondent.

The company is the second largest independent mortgage originator by purchase volume since 2016.

Caliber Home Loans has grown its origination volume at an annual growth rate of 39% from 2013 through 2019.

In 2019, the company had revenue of $1.09 billion. Revenue was $1.09 billion for the first six months of 2020.

Galecto Inc.: Clinical stage biotech company Galecto Inc GLTO is planning a 5.7 million share offering at an expected price point of $14 to $16.

The key area of focus for Galecto is fibrosis. The company’s lead candidate is in Phase 2b trials for idiopathic pulmonary fibrosis.

Galecto has readouts expected on four different product candidates in 2022.

On Amazon.com AMZN, Leslie’s accounts for 40% of pool and spa care category sales over the last 12 months.

Leslie’s has 57 consecutive years of growth and is on pace to have more than $1 billion in revenue for fiscal 2020.

In the first nine months of fiscal 2020, Leslie’s had sales of $730.9 million, compared to $630 million in the prior year’s period.

Courtesy image, Leslie's Inc.

Posted In: 5GAllegro MicroSystemsAmeriHomeBiodesixCaliber Home LoansCovid-19GalectoGatos SilverLeslie'slidarMavenirMediaAlphaRoot IncVoxtelNewsIPOs