After a barrage of successful IPOs hit the market last week, action is set to come to a screeching halt this week. There is not a single IPO expected to price this week, which isn't uncommon for the week of 4th of July. As the week progresses, we would expect more IPOs to land on the calendar -- especially considering how hot the IPO market has been.
As it currently stands, the only IPO slated to price next week is Pivotal Investment Corp (PICU), a blank check company focused on acquiring assets in the logistics industry. Its 20 mln share IPO is expected to price at $10 on Friday, July 12.
While many of the highly-anticipated "headliner" IPOs for the year have already launched -- including Uber (UBER), Lyft (LYFT), Pinterest (PINS), and Slack (WORK) -- there are still a number of intriguing deals in the pipeline.
One such deal is Health Catalyst (HCAT), which filed paperwork for an IPO on June 27. There isn't an expected price range and the company hasn't reported how many shares it will be offering yet. Once a firm IPO date is set, more specifics regarding the deal will be released.
As a provider of data and analytics to healthcare providers, it operates at the cross-roads of the two strongest areas within the IPO market: healthcare and technology.
Specifically, its cloud-based platform provides a comprehensive environment to integrate and organize data from various applications and software. As the data is housed under one common platform, analytics can then be applied to improve customers' clinical, financial, and operational performance.
HCAT's growth has been strong with revenue up 71% yr/yr to 35.2 mln for the three months ended March 31, 2019. Its losses are also manageable compared to many tech IPOs. For the period, its operating loss was ($11.1) mln compared to ($11.9) mln in the year ago period.
Additionally, there are tier one underwriters behind the deal, including Goldman Sachs, JP Morgan, and William Blair, which speaks to the higher-quality of the IPO. In short, HCAT is an upcoming IPO to keep on the radar and one that we'd expect to perform very well.
To conclude, the climate remains very favorable for new issues with the stock market trading near all-time high levels. The lack of deals this week is solely related to the 4th of July holiday, rather than any chance in the underlying dynamics. Assuming volatility remains in check, the IPO market should pick up where it left off last week.