IPO Outlook For The Week: Affirm, Petco, Playtika Lead Busy Week

The week of Jan. 11 is shaping up to be a busy one for the initial public offering market. This week’s lineup of IPOs includes fintech, esports, automotive and e-commerce companies offering a diverse range of investment opportunities. 

Affirm Holdings: After delaying its IPO in 2020, Affirm Holdings AFRM is set to go public this week. The company is planning on selling 24.6 million shares in a price range of $30 to $38.

The company had gross merchandise volume of $4.6 billion in fiscal 2020, up 77% year-over-year. Revenue for the first quarter was $174 million, which was up 98% year-over-year.

Affirm has 6.2 million customers and represents over 6,500 merchants. Peloton Interactive Inc. PTON represented 29% of fiscal 2020 and 30% of first-quarter 2021 revenue, respectively. Affirm was founded by Max Levchin, the co-founder of Paypal Holdings Inc. PYPL.

Related Link: 10 IPOs To Watch Out For In 2021

Motorsport Gaming: Esports company Motorsport Gaming MSGM is seeking to sell 3 million shares at a price point of $19 to $20.

The company has exclusive licenses and is the official developer and publisher of certain NASCAR assets. Along with NASCAR, the company has esports competitions for the British Touring Car Championship and Le Mans.

For the first nine months of 2020, the company held 53 esports competitions, compared to 22 in all of 2019. The company had 51 million views in the first nine months of 2020. Revenue for the first nine months of 2020 was $16.11 million compared to $11.9 million in all of fiscal 2019.

Petco Health and Wellness Company: Leading pet retailer Petco Health and Wellness Company WOOF is planning an IPO of 48 million shares in a price range of $14 to $17.

The company has over 1,470 retail locations that are within a 3-mile radius of 54% of customers.

Over the first nine months of 2020, the company had revenue of $3.58 billion, up 9% year-over-year. Comparable sales were up 9.6% in the first nine months. Comp sales were up 2%, 10.5% and 16.3% for the first three quarters, respectively.

The company has pivoted to e-commerce to help grow the business. Growth is expected to come from a further push into pet health care going forward.

Poshmark: Clothing reseller Poshmark POSH is planning to sell 6.6 million shares at a price point of $35 to $39.

Since its inception, the company has had over 70 million users and over 130 million items sold across its platform.

As of Sept. 30, the company had 201 million items on its market and 31.7 million active users.

Revenue for fiscal 2019 was $205.2 million, compared to $148.3 million in the prior year. The first nine months of 2020 had revenue of $192.76 million.

Kuke Music Holding: The leading classical music licensing company in China is set to go public this week with Kuke Music Holding KUKE offering 5 million ADSs at a price point of $10 to $12.

The company holds a 46.6% share for classical music licensing in the country, with a library of more than 1.8 million tracks. Among the company’s customers are 743 institutional subscribers including libraries and universities.

Kuke offers a subscription service and educational services as well. Revenue for the company was $29.7 million in fiscal 2019.

Playtika Holding: Mobile game company Playtika Holding Corp PLTK operates more top 100 grossing mobile games than any other company, with nine placing in the top 100 including “Bingo Blitz.”

The company had revenue of $1.89 billion in fiscal 2019. Revenue for the first nine months of fiscal 2020 was $1.8 billion. The company had 10.2 million DAU in fiscal 2019 and 33.3 million MAU. The first nine months of 2020 had 11.4 million DAUs and 35.2 million MAUs.

The company is planning to sell 69.5 million shares at a price point of $22 to $24.

Driven Brands Holdings: In the highly fragmented automotive services market, Driven Brands Holdings DRVN is the market leader.

The company has over 4,100 locations across 49 states and owns the well-known Maaco and Meineke brands.

In fiscal 2019, the company’s revenue was made up 65% from maintenance, 24% from paint/collison/glass and 11% from platform. The company acquired the world’s largest car wash company ICWG in 2020, which will help diversify the revenue makeup.

Revenue for the company was $936 million in fiscal 2019. Same-store sales have grown at an average of 4% over the last 12 years. The automotive services market is worth $300 billion in the U.S. as of 2019.

The company plans on selling 38 million shares in a price range of $17 to $20.