US IPO Week Ahead: GAN bets on itself in a 1 IPO week

IPO

Just one IPO is scheduled for the week ahead, though there are a handful of deals in the IPO pipeline that are primed for May public offerings.

Internet gambling software provider GAN Limited (GAN) plans to raise $48 million at a $224 million fully diluted market cap after upsizing its deal by 57%. The London-based company has been focusing its efforts on US expansion, capitalizing on the country’s legalization of sports betting in 2018, and its largest customer is fantasy sports site FanDuel (46% of 2019 revenue). While larger than GAN, sports betting platform DraftKings (DKNG) recently went public via SPAC merger and is currently up 101%. GAN Limited is currently listed on London’s AIM exchange under the symbol GAN. Adjusting for a four-for-one share exchange prior to the closing of its US IPO, GAN‘s as-converted last close was $11.49, above the proposed midpoint.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
GAN (GAN)
London, United Kingdom
$48M
$224M
$6.50 – $8.50
6,380,000
B. Riley FBR
UK-based provider of internet gambling software.

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Following the IPO market’s slowest March and April in a decade, an uptick in activity in May is promising. Grocery giant Albertsons (ACI) had its earnings call on April 30 and noted a 34% increase in identical store sales during the first eight weeks of its FY20. Other “pandemic-proof” companies including Chinese cloud services provider Kingsoft Cloud (KC) and Bitcoin mining play Ebang International (EBON) are on file for potential May IPOs. Following a string of successful biotech IPOs, oncology biotechs Lantern Pharma (LTRN) and Ayala Pharmaceuticals (AYLA) are also in a good position to attempt offerings.

Street research is expected for Keros Therapeutics (KROS) on Sunday, 5/3.

Lock-up periods will be expiring for eight companies. On Sunday, 5/3: Q&K International Group (QK). On Tuesday, 5/5: Centogene (CNTG), Galera Therapeutics (GRTX), and Silvergate Capital (SI). On Wednesday, 5/6: CNS Pharmaceuticals (CNSP) and TELA Bio (TELA). On Thursday, 5/7: 36KR Holdings (KRKR) and ECMOHO (MOHO).


IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/30/20, the Renaissance IPO Index was down 0.2% year-to-date, while the S&P 500 was down 9.3%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was down 2.4% year-to-date, while the ACWX was down 18.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.The article US IPO Week Ahead: GAN bets on itself in a 1 IPO week originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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