US IPO market winds down for Thanksgiving, two deals scheduled

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Updated: 26 November 2019

 

  • $235m expected to be raised by LMP Automotive Holdings and Alussa Energy Acquisition.
  • Thanksgiving break on Thursday (28th November).
  • com announced $100m IPO plans last Friday.

 

Thanksgiving holiday week will be a quiet one for the US IPO market with just one holdover from last week and a single SPAC set to debut and raise $235m in proceeds by Friday (22nd November).

Wall Street will be closed for Thanksgiving on Thursday 28th November, but there will still be time for auto e-tailer LMP Automotive Holdings to go public on the Nasdaq with an $11m deal run by ThinkEquity.

The run-up to the big day has not been smooth sailing for LMP after it lowered its proposed share sale, cutting 35% from its valuation and delaying its offering.

Florida-based company, The Plantation now expects the deal to go live sometime this week when 2,090 million shares will be priced at a $5–$6 range for an $11m deal size and a potential new market cap of $45m.

LMP was only founded in 2017 but its e-commerce site, a hub for users to purchase, rent and sell vehicles, has grown from strength to strength in a short time and booked $14m in revenue for the 12 months to November 2019.

Founder and CEO Samer Tawfik has already announced his intention to buy into 24% of the deal, which would equate to around $3m. LMP is set to list under the NASDAQ:LMPX ticker.

Alussa Energy Acquisition also expects to bring in $225m in proceeds this week from a 15 million share sale priced at $10 for a new market valuation of $281m.

Located in the Cayman Islands, Alussa wants to build its portfolio in oil & gas E&Ps through the deal — run by BTIG. It will list under a NASDAQ:ALUS.U ticker.

With just a little over a month left in the calendar year, companies harbouring ambitions to hold IPOs before 2020 will have to submit initial filings in the next week or so.

Payment software company Bill.com (NYSE:BILL) did just that last Friday (22nd November) when it filed with the SEC for a $100m floatation.

While analysts are waiting on the finer details of the deal, there is excitement that Bill.com could be a great long-term prospect in the stock race.

Goldman Sachs (NYSE:SE) and BofA Securities feature in a long lister of underwriters for the IPO.

A press release published earlier in the year put the company’s valuation at more than $1bn, and it has received support from third parties after recently raising $88m in a funding round.

The fintech unicorn’s prospectus is encouraging as its fundamentals are robust, although, in a similar manner to other tech IPOs in 2019, interested commentators are still unsure whether there is a path to profitability.

Bill.com delivered $35.1m revenue for the quarter to 30th September 2018, a 57% increase year-over-year, and more recently logged $108m total revenue for the FY ending 30th June 2019.