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US IPO Week Ahead: McAfee returns to the public market in a 3 IPO week

Three IPOs and one SPAC are expected to raise $1.6 billion in the week ahead, led by leading cybersecurity brand McAfee (MCFE).

Taken private by Intel in 2011, McAfee (MCFE) plans to raise $759 million at a $9.6 billion market cap in its return to the public market. McAfee provides integrated security solutions against cyberattacks to consumers, enterprises, and governments. Its consumer-focused products protected over 600 million devices and its enterprise customers included 86% of the Fortune 100. The company is profitable and plans to offer a 1.7% yield at the midpoint. Despite using the IPO proceeds to pay down debt, McAfee will be highly leveraged post-offering.
 
IT infrastructure platform Datto (MSP) plans to raise $561 million at a $4.2 billion market cap. The Vista-backed company provides a family of integrated tools that enable managed service providers (MSPs) to provide security and continuity services to their SMB customers. Although the company is profitable and generated positive free cash flow in the 1H20, revenue growth has been weighed down by declining device revenue.
 
Mortgage servicer and lender Guild Holdings (GHLD) plans to raise $153 million at a $1.1 billion market cap. The company provides loan sourcing and mortgage services, and it is among the longest operating seller-servicers in the US. The company is profitable, and revenue growth accelerated in the 1H20.

Cormorant Asset Management’s SPAC Helix Acquisition (HLXA) plans to raise $100 million to acquire business in the healthcare industry. The company is led by Cormorant founder Bihau Chen, who serves as CEO and Chairman.

U.S. IPO Calendar
Issuer
Business
Deal Size
Market Cap
Price Range
Shares Filed
Top
Bookrunners
Helix Acquisition (HLXA)
Boston, MA
$100M
$129M
$10
10,000,000
Jefferies
Blank check company formed by Cormorant Asset Management targeting healthcare.
Datto (MSP)
Norwalk, CT
$561M
$4,182M
$24 – $27
22,000,000
Morgan Stanley
BofA
Sells a hybrid IT infrastructure platform to managed service providers.
Guild Holdings (GHLD)
San Diego, CA
$153M
$1,102M
$17 – $19
8,500,000
Wells Fargo
BofA
Provides personalized mortgage services and loan origination.
McAfee (MCFE)
San Jose, CA
$759M
$9,621M
$19 – $22
37,000,000
Morgan Stanley
Goldman
Leading provider of antivirus and endpoint security software.

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Street research is expected for 11 companies and lock-up periods will be expiring for two companies in the week ahead. For access to Street research and lock-up expiration dates, sign up for a free trial of IPO Pro.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/16/20, the Renaissance IPO Index was up 81.6% year-to-date, while the S&P 500 was up 7.8%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 37.8% year-to-date, while the ACWX was down 3.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianpin and SoftBank.

The article US IPO Week Ahead: McAfee returns to the public market in a 3 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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