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U.S. IPO market braces for 17 deals and at least two worth more than $1 billion

The U.S. initial public offering is gearing up for another busy week with 17 deals on tap and at least two expected to raise more than $1 billion.

The biggest deal is that of Chinese logistics company Full Truck Alliance
YMM,
which priced early Tuesday and raised $1.56 billion. The company sold 82.5 million American depositary shares in the IPO, which priced at $19 per ADS, the top of the expected range of between $17 and $19.

Each ADS represented 20 ordinary shares. With 21.73 billion ordinary shares outstanding, the IPO pricing values the company at about $20.64 billion. The stock is expected to start trading Tuesday on the NYSE under the ticker symbol “YMM.” Morgan Stanley, CICC and Goldman Sachs are the lead underwriters.

For the quarter to March 31, the company recorded a net loss of RMB197.0 million ($30.2 million) on revenue of RMB867.2 million ($132.9 million), after a loss of RMB63.3 million on revenue of RMB438.6 million in the same period a year ago. 

“It’s a very fast-growing business, almost like an Uber for trucks,” said Dr. Josef Schuster, founder of IPOX Schuster LLC and chief architect of the IPOX Indexes.

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The company has institutional investor backing from the Ontario Teachers’ Pension Plan Board and an entity affiliated with Mubadala Investment Company PJSC, an Abu Dhabi-based sovereign investor, which have agreed to act as anchor investors, he added.

“That’s always good for initial sentiment,” said Schuster. “It’s not cheap — all logistics companies trade at 10 to 20 times sales so investor need to pay up but it’s top of our list.”

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The second biggest deal of the week is that of healthcare manager Bright Health Group
BHG,
,
which is aiming to raise $1.38 billion at the top of its price range. The company has applied to list on the NYSE under the ticker “BHG.”

Data software company Confluent Inc.
CFLT,

is aiming to raise up to $759 million at the top of its price range. The company has applied to list on Nasdaq under the ticker “CFLT.”

“We have pioneered a new category of data infrastructure designed to connect all the applications, systems, and data layers of a company around a real-time central nervous system,” the company says in its IPO filing documents. “This new data infrastructure software has emerged as one of the most strategic parts of the next-generation technology stack, and using this stack to harness data in motion is critical to the success of modern companies as they strive to compete and win in the digital-first world.”

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Mister Car Wash
MCW,
,
the biggest car wash brand in the U.S., is aiming to raise $600 million at a market cap of $5.3 billion, according to Renaissance Capital, a provider of institutional research and IPO ETFs. The company has 344 locations across 21 states. It has applied to list on the NYSE under the ticker “MCW.”

Digital doctors network Doximity
DOCS,

is planning to raise $501 million at a $4.5 billion valuation. It has applied to list on the New York Stock Exchange under the ticker “DOCS.” There are nine banks underwriting the deal, led by Morgan Stanley and Goldman Sachs. Proceeds of the deal will be used for working capital and other general corporate purposes.

“We are the leading digital platform for U.S. medical professionals, as measured by the number of U.S. physician members, with over 1.8 million medical professional members as of March 31, 2021,” the company says in its IPO filing documents. “Our members include more than 80% of physicians across all 50 states and every medical specialty.”

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“It’s more like a seasoned private-equity deal,” said Schuster. “I think it will be well received given its growth rates. Again, it’s not cheap, at the midpoint of its price range it’s about 19 times sales in valuation, so there is no room for error once they report.”

Two California wine companies are going public this spring, the first major wineries to do so since the late 1990s. Winemakers explain the lessons of past stock offerings from wineries like Mondavi and Ravenswood and why they think the time is now right to join the IPO fray. Photo: Sean Havey for The Wall Street Journal

Rounding out the list are: customer experience software maker Sprinklr
CXM,

is aiming to raise $361 million at a $5.5 billion valuation; human resources platform First Advantage
FA,
,
which is aiming to raise $298 million at a $2.1 billion valuation, according to Renaissance; Graphite Bio
GRPH,
,
a gene editing biotech aiming to raise $200 million at a $915 million valuation; Chinese social networking platform Soulgate
SSR,
,
aiming to raise $185 million at a $1.8 billion valuation; biotech Monte Rosa Therapeutics
GLUE,
,
aiming to raise $176 million; Irish biotech GH Research
GHRS,
,
aiming to raise $125 million; AMTD Digital
HKD,
,
a Hong Kong-based digital financial services company seeking to raise $120 million Elevation Oncology,
ELEV,

aiming to raise $100 million; biopharma Alpha Teknova
TKNO,
,
aiming to raise $75 million; bioengineering company Miromatrix Medical, aiming to raise $32 million; kidney disease biotech Unicycive Therapeutics, aiming to raise $25 million; and Acurx Pharmaceuticals, aiming to raise $15 million.

The Renaissance IPO ETF
IPO,
-0.25%

is flat in the year to date, but up 56% from 12 months ago, while the S&P 500
SPX,
+1.40%

has gained 12.5% in the year so far and is up 35.5% over the last year.

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