IPO Preview: Sun Country Airlines, Olo, Tuya Lead Busy Week

The IPO market is heating up this week with offerings from a low- cost airline, online food ordering platform, SaaS company and several small offerings.

Here's a closer look at the large IPOs that are expected to price this week.

Sun Country Airlines: The low-cost airline Sun Country Airlines SNCY is seeking to sell 9.1 million shares at a price point of $21 to $23.

The company has created a hybrid model of low-cost airfare and shared resources for freight services. The company counts Amazon.com AMZN as a freight partner.

Sun Country Airlines entered 64 new markets in 2018 and 2019. The company had a presence at 53 airports in 2020. Growth is expected to come from the expansion of the cargo business, a recovery in air traffic and additional routes.

Olo: The cloud-based, on-demand food ordering partner Olo OLO is going public this week. The company partners with 400 brands, covering over 64,000 restaurants and processing 1.8 million orders per day.

Olo had revenue growth of 94% year-over-year in the last fiscal year, with gross margins of 81% and operating margins of 16%. The company is benefiting from a shift to digital ordering in the $1.6-trillion food industry.

Olo has three product offerings: ordering, dispatch and rails. In 2020, 71% of customers used all three offerings, compared to 44% in the prior year. Ordering operates with a subscription-based model and the other two operate with a transaction-based model.

Olo had revenue of $98.4 million in fiscal 2020. The company initially planned on selling 18 million shares at a price point of $16 to $18. On Monday, the company raised the expected offering price to a range of $20 to $22. 

Related Link: IPO Preview: Roblox, Coupang, Joann Lead Busy Week Of Offerings

Vine Energy: Natural gas exploration company Vine Energy VEI plans to sell 18.75 million shares at a price point of $16 to $19. The company operates in the Haynesville and Mid-Bossier regions in Louisiana.

The company said it is among the most economic natural gas producers in North America. The region in which the company operates is considered one of the highest-quality dry gas resource regions in the U.S., according to The Oil & Gas Journal.

Gain Therapeutics: Developmental biotechnology company Gain Therapeutics GANX is seeking to sell 3.6 million shares at a price point of $10 to $12. The company is targeting lysosomal storage disorders and rare genetic diseases. All of the company's treatments are in the preclinical stage.

The Duckhorn Portfolio: Luxury wine company The Duckhorn Portfolio NAPA is planning to sell 20 million shares at a price point of $14 to $16. The company is the largest pure play luxury wine company in the U.S. and ranked 11th in sales in the U.S. in 2020.

The company had compounded annual sales growth of 18% from 2015 to 2020. The company has posted 11 years of consecutive organic growth. Duckhorn Portfolio's wine offerings have a suggested retail price range of $20 to $200. The company had sales of $270.6 million in fiscal 2020.

Tuya Inc: Internet of things company Tuya Inc TUYA company is seeking to sell 43.6 million ADS at price point of $17 to $20.

The company completes 117 million deployments for over 5,000 customers in 220 countries. Tuya’s offerings can be deployed on Amazon Web Services, Microsoft Azure and Tencent Cloud.

The worldwide IoT software market is expected to grow from $129.2 billion in 2019 to $237 billion in 2024. Tuya grew revenue from $105.8 million in fiscal 2019 to $179.9 million in fiscal 2020.

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