U.S. IPO Week Ahead: Dun & Bradstreet Returns To Public Market In Shortened 4 IPO Week

Four IPOs are expected to raise $2 billion before the Fourth of July, led by commercial data analytics provider Dun & Bradstreet (DNB).

Dun & Bradstreet plans to raise $1.3 billion at a market cap of $8 billion. The company was taken private for $6.9 billion including debt in February 2019 by an investor consortium led by Cannae Holdings, Black Knight, and CC Capital, with the goal of remedying “operational and execution issues.” Dun & Bradstreet serves many of the largest enterprises in the world, including roughly 90% of the Fortune 500 and 60% of the Global 500 in 2019. While revenue growth accelerated to 17% in the 1Q20, quarterly growth has been lumpy.

Insurtech startup Lemonade (LMND) plans to raise $270 million at a $1.4 billion market cap. The Millennial-focused company provides an online self-serve renters and homeowners insurance platform and has captured a 7% market share in New York in three and a half years. Fast-growing and highly unprofitable, Lemonade is coming to market at a steep discount to its last private round.

DoubleDown Interactive (DDI), a leading developer and publisher of social casino mobile games, plans to raise $198 million at a $896 million market cap. Acquired by Korea’s DoubleU Games in 2017, Seattle-based DoubleDown has a strong track record of profitability and industry-leading monetization. However, its focus on profitability weighed on revenue growth in 2019, and it relies on a small percentage of players for all revenue.

Benefits management platform Accolade (ACCD) plans to raise $175 million at a market cap of $1.0 billion. The company provides its healthcare benefits management platform primarily for self-insured employers, targeting an estimated $11+ billion market opportunity. The company has demonstrated strong growth and improving margins, though its customer acquisitions have slowed in the year-to-date period.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

DoubleDown Interactive
Seoul, South Korea

$198M
$896M

$17 – $19
11,000,000

JP Morgan
BofA

Leading developer and publisher of mobile- and web-based social casino games.

Dun & Bradstreet
Short Hills, NJ

$1,315M
$8,011M

$19 – $21
65,750,000

Goldman
BofA

Provides commercial data analytics services.

Accolade
Plymouth Meeting, PA

$175M
$1,044M

$19 – $21
8,750,000

Goldman
Morgan Stanley

Provides a healthcare benefits management platform for self-insured employers.

Lemonade
New York, NY

$270M
$1,389M

$23 – $26
11,000,000

Goldman
Morgan Stanley

Provides online self-serve renters and homeowners insurance.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/25/20, the Renaissance IPO Index was up 32.2% year-to-date, while the S&P 500 was down 4.6%. Renaissance Capital’s IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Zoom Video (NASDAQ:ZM) and Uber (NYSE:UBER). The Renaissance International IPO Index was up 18.3% year-to-date, while the ACWX was down 10.3%. Renaissance Capital’s International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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