5 IPO stocks to watch in October

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An IPO boom that began in 2020 accelerated in 2021, thanks in large part to a record …

An IPO boom that began in 2020 accelerated in 2021, in large part thanks to record stock prices. Traditional IPOs have raised $ 155 billion since the start of the year, up 184.7% from a year ago.

So far, 417 IPOs have been filed in 2021, an increase of 106.4% over the same period in 2020 months, according to Renaissance Capital.

One of the most publicized IPOs in September was restaurant-focused software company Toast Inc. (ticker: TOST). Toast valued its $ 870 million IPO at $ 40 per share on September 22, but its stock is already trading in the low end of $ 50 per share within three weeks of its first day of listing.

While more IPOs are expected to take place in October, recent market concerns over China’s real estate sector, rising energy costs and inflation have made some companies more cautious about new listings. Here are five IPOs to watch out for:

– iFit Health & Fitness Inc. (IFIT)

– Authentic Brands Group LLC (AUTH)

– Fresh Market Holdings Inc. (TFM)

– Stronghold Digital Mining Inc. (SDIG)

– Allbirds Inc. (BIRD)

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iFit Health & Fitness Inc. (IFIT)

iFit Health & Fitness is a connected home fitness equipment and interactive subscription platform. The Company is the largest selling fitness equipment supplier in the United States and the owner of popular fitness brands iFit, NordicTrack, and ProForm.

The company plans to raise $ 600 million when it goes public, offering 30.8 million shares at a target price range of between $ 18 and $ 21 per share. The target price range suggests a company valuation of around $ 6.4 billion.

The company claims to have 6.1 million members and 1.5 million fitness subscribers. In its IPO documents, iFit said it had revenue of $ 1.7 billion for the 12 months ending May 31, 2021.

While the company is still considering listing on the Nasdaq under the ticker IFIT, it postponed its IPO on October 7, accusing unfavorable conditions due to market volatility.

Authentic Brands Group LLC (AUTH)

Authentic Brands is a brand management company that has partnered with mall operators to acquire distressed retailers on the verge of bankruptcy, including Aeropostale, Brooks Brothers and Forever 21. Authentic also owns Juicy Couture, Sports Illustrated and the trademark rights of Marilyn Monroe and Elvis Presley.

Other brand owners have sold assets over the past two years, but Authentic has bought them aggressively. Its most recent acquisition is the $ 2.5 billion buyout of Reebok from Adidas ADR (ADDYY) in August.

Authentic Brands filed its IPO documents with regulators on July 6. The company reported net profit of $ 211 million in 2020, up from $ 72.4 million in 2019. From 2016 to 2020, Authentic’s revenue grew from $ 165 million to $ 489 million. The company is reportedly looking for a valuation of $ 10 billion on the IPO.

Authentic has not announced an official IPO date. Given its July filing date, however, the stock could certainly start trading on the NYSE under the symbol AUTH before the end of October.

[See: 7 Retail Stocks to Buy Ahead of a Summer Shopping Boom.]

Fresh Market Holdings Inc. (TFM)

Gourmet grocery chain The Fresh Market first went public in 2010, but has struggled to compete with Kroger Co. (KR), Whole Foods and other high-growth grocery companies.

Apollo Global Management Inc. (APO) privatized Fresh Market in a $ 1.4 billion transaction in 2016. The repurchase price represented a premium of approximately 30% over its IPO price in scholarship six years earlier.

After five years of restructuring Fresh Market’s business, Apollo looks set to reopen the company on the stock exchange. Fresh Market Holdings officially filed its IPO documents on July 16. The company said it was looking to raise up to $ 100 million in capital, but Renaissance Capital said it expects Fresh Market’s IPO to raise up to $ 250 million. dollars.

The company reported revenue of $ 1.9 billion for the 12 months ending April 2021. Fresh Market has yet to announce an official IPO date, but stock may start trade on the Nasdaq under the ticker TFM in October.

Stronghold Digital Mining Inc. (SDIG)

Stronghold Digital Mining is a Bitcoin-focused cryptocurrency mining company. The company owns and 100% operates approximately 1,800 crypto asset mining machines.

Cryptocurrency prices have skyrocketed since early 2020 as a younger generation of investors flocked to the asset, seeing it as a hedge against inflation and a modern alternative to gold.

Stronghold recorded just $ 7 million in revenue in the 12 months ending March 31, 2021. However, the company said it has made deals to acquire another 27,300 mining machines, which could potentially increase its total number. of mining machines by more than 1,500%.

Stronghold even recently acquired the Scrubgrass power plant in Venango County, Pa., For $ 105 million to power its mining computers.

Stronghold filed IPO documents on July 27, but has yet to announce an official listing date. The company plans to trade on the Nasdaq under the symbol SDIG.

[Read: How to Invest in Cryptocurrency.]

Allbirds Inc. (BIRD)

Allbirds is a manufacturer of sustainable footwear. To produce its shoes, the company only uses materials of natural origin, such as fibers, sugar cane and crab shells.

Allbirds seeks to capitalize on the growing demand for sustainable products, particularly among the younger generation of buyers. The company operates only 27 physical stores, but its warehouse footprint has the potential to reach up to 2.5 billion consumers in 35 different countries. Allbirds reported $ 194.6 million in digital sales in 2020, which represented 89% of total revenue.

The company was founded in 2015 and reported revenue of $ 244 million for the 12 months ending June 30, 2021. Allbirds generated a net loss of $ 25.9 million in 2020, compared to a loss net of $ 14.5 million in 2019.

A fundraiser in 2020 valued Allbirds at around $ 1.7 billion. The company filed for its IPO on August 31, suggesting it could list its shares on the Nasdaq under the symbol BIRD as early as October.

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5 IPO stocks to watch in October originally appeared on usnews.com


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