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The IPO Week Ahead

This week, five IPOs are scheduled to raise $4.5 billion in the week ahead, led by the largest U.S. cryptocurrency exchange Coinbase's (NASDAQ: COIN) widely anticipated direct listing.

05/11/2021 13:56

This week, five IPOs are scheduled to raise $4.5 billion in the week ahead, led by the largest U.S. cryptocurrency exchange Coinbase's (NASDAQ:COIN) widely anticipated direct listing. But "the largest IPO of the week" title will go to AppLovin (NYSE:APP) that plans to raise $2.0 billion at a $30.7 billion market cap. Here's a glimpse of this week's IPO market which will host various industries.

Crypto Banking

Digital banking platform Coinbase will be the Nasdaq's first major direct listing, with an estimated market value at listing of more than $50 billion. This platform allows individuals and institutions to trade Bitcoin and over 45 other crypto assets. While the company saw explosive growth in the fourth quarter of 2020, its revenue is directly tied to cryptocurrency transactions which have fluctuation with their DNA.

Software For Mobile-Game Developers

AppLovin provides a platform that enables mobile app developers to market and monetize their apps. In simple words, it provides software used by mobile-game developers to help them grow their businesses. It is fast-growing and profitable on an EBITDA basis. Since it was founded in 2012, it has driven over six billion mobile app installs for developers. It is offering 25 million shares at $75 to $85 each, which means it could raise as much as $2.13 billion if the stock sells at the high end of that range. Eighteen underwriters are listed in its prospectus, including Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), KKR & Co Inc (NYSE:KKR), Bank of America Corp's (NYSE:BAC) BofA Securities, and Citigroup Inc (NYSE:C). The company reported that approximately 410 million people a day open apps that contain Applovin software and that it has a portfolio of more than 200 free-to-play mobile games with 32 million daily users.

Related content: Benzinga's Full Upcoming and Recent IPOs Calendar

Autonomous Driving Technology

The self-driving technology company TuSimple (NASDAQ:TSP) also set terms for its IPO. It could raise as much as $1.3 billion at an $8.5 billion market cap as it is offering nearly 34 million shares priced from $35 to $39. Autonomous trucking startup is developing autonomous driving technology for semi-trucks in order to build the first Autonomous Freight Network (AFN). Although it is highly unprofitable with explosive growth, itbegan generating revenue in 2019.

Healthcare Platform

Senior-focused healthcare platform agilon health (NYSE:AGL) plans to raise $1.0 billion at a $9.0 billion market cap. This company provides a healthcare platform that is focused on senior care for primary care physicians. The company has posted strong growth and was profitable on an EBITDA basis in 2020. Insiders and new investors have indicated an interest in purchasing up to 50% of the deal.

Cloud-Based Digital Banking

Texas-based cloud-based digital banking company Alkami Technology (NASDAQ:ALKT) initially planned to raise $141 million at a $2.2 billion market cap. But on Monday, the bank software upgraded its pricing range between $26 and $28 a share from the prior $22 and $25 a share so it could now raise up to $168 million. Alkami provides a digital banking platform to community, regional, and superregional financial institutions. Although it is unprofitable, it has been growing in double-digits over the past two years, steadily increasing gross and EBITDA margins.

Environmentally-Friendly Disposable Food Packaging

In its second IPO attempt, Karat Packaging (NASDAQ:KRT) plans to raise $75 million at a $368 million market cap. Fast-growing and profitable, this company manufactures and distributes environmentally-friendly disposable food packaging to many fast casual and fast food chains, such as Applebee's, Chipotle Mexican Grill, Inc. (NYSE:CMG), and In-N-Out.

By the looks of it, the second week of April is shaping up to be a relatively good time on the IPO front.

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