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IPO Preview: Honest Company, Chinese Lifestyle Brand Onion Global, Hydroponic iPower Lead Group

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IPO Preview: Honest Company, Chinese Lifestyle Brand Onion Global, Hydroponic iPower Lead Group

The week of May 3 has several IPOs on the docket spread across sectors like consumer products, fashion, banking, vaccines and hydroponics. Here is a look at this week’s top offerings and details investors should know.

Waterdrop: Working with insurance companies, Waterdrop (NYSE: WDH) seeks to have a positive social impact with its technology platform. Waterdrop has over 79.4 million cumulative customers and over 340 million donors to its crowdfunding platform, which is the largest medical crowdfunding platform in China.

Waterdrop works with 62 insurance carriers and offers over 200 products to help customers and those seeking help with medical bills. The company had revenue of $464.1 million in fiscal 2020. The company plans on offering 30 million American depositary shares at a price point of $10 to $12.

Five Star Bancorp: With branches in California, Five Star Bancorp (NASDAQ: FSBC) is a regional bank company focused on the Sacramento market. The company ended 2020 with $1.8 billion in deposits and $1.5 billion in loans.

From 2016 to 2020, the company saw compounded annual growth of 23.5% for assets, 23.8% for loans and 23.7% for deposits. First quarter preliminary numbers saw deposits grow 11.2% from the fourth quarter and loans grow 2.6% from the fourth quarter. The company plans on selling 5.265 million shares at a price point of $18 to $20.

The Honest Company: Clean lifestyle product company The Honest Company (NASDAQ: HNST) could be the most-watched IPO this week. The company was founded by actress Jessica Alba in 2012 in response to finding clean products and non-allergic reactions from products after giving birth.

The Honest Company prides itself in being “a conscious living company for today and tomorrow.” The company has grown from being a diapers-and-wipes company to covering every age and every life stage of its customers.

The Honest Company had revenue of $235.6 million in fiscal 2020, up 27.6% year-over-year. Diapers and wipes made up 63% of 2020 revenue, up 16.4% year-over-year. Skin and personal care product revenue represented 26% of sales in 2020 and were up 55% year-over-year. Household and wellness sales made up 11% of sales and had year-over-year growth of 116.5% in 2020. The Honest Company products can be purchased online from the company or sites like Amazon.com (NASDAQ: AMZN) and in physical stores like Costco Wholesale Corporation (NASDAQ: COST) and Target Corporation (NYSE: TGT).

Founder Alba will not sell any shares in the IPO and will own an estimated 6.1% of the company after the offering. The company is seeking to sell 25.8 million shares at a price point of $14 to $17.

Related Link: 10 IPOs To Watch Out For In 2021

Bowman Consulting Group: Professional services company Bowman Consulting Group (NASDAQ: BWMN) offers engineering solutions to customers. Bowman Consulting has over 2,200 customers who count on the company for services like planning, engineering, construction management, commissioning, geomatics, survey, land procurement and environmental consulting. The company had revenue of $122 million in the last fiscal year, up from $113.7 million in the prior year. Bowman Consulting plans to offer 3.1 million shares at a price point of $12 to $14.

Valneva: Vaccine company Valneva (NASDAQ: VLA) plans to sell 7.1 million ordinary shares (3.55 million ADSs) at a price of $28.24. The company is focused on vaccine development in infectious diseases. Target areas include Lyme disease, the Chikungunya virus and COVID-19. The company’s lead program VLA15 is in Phase 2 trials to treat Lyme disease and is partnered with Pfizer Corporation (NYSE: PFE). Other clinical trials include VLA1553 to treat Chikungunya virus and VLA2001 to treat COVID-19. The company’s VLA1553 is the only known Phase 3 trial vaccine to treat Chikungunya, which could put it in the spotlight with spread to over 100 countries. Several of the company’s products have received Fast Track designation by the FDA.

Onion Global: Lifestyle brand company Onion Global (NYSE: OG) plans on selling 12.5 million ADS at a price point of $7.25 to $9.25. The company targets fresh, fashionable and future brands, which it refers to as the 3Fs across China and parts of Asia. The company has over 4,000 brands in 23 categories sold in 43 countries. Onion Global is a top ten global lifestyle company in China. The company uses an omnichannel approach with its self operated ecommerce platform O’Mall, live streaming sales, third party sellers and offline sales. The company has 2.1 million active buyers and 15.5 million registered users.

iPower: Online hydroponic equipment seller iPower Inc (NASDAQ: IPW) plans to offer 5 million shares at a price point of $9 to $11. The company offers its own brands and partnered brands through its website www.zenhydro.com. iPower-owned brands represented 76% of company sales in the six month period ending December 31, 2020. The company had sales of $26.2 million in the six month period ending December 31, 2020. Preliminary first-quarter revenue is expected to be in a range of $11.75 million to $12.75 million compared to $9.4 million in the prior year.

 

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