5 Hot Upcoming IPOs to Watch Heading Into 2021

This week’s upcoming IPOs will be some of tech’s hottest companies. Keep in mind that more than $7 billion is expected to be raised. This compares to about $3.9 billion last week…

The next two weeks will mark the end of this year’s IPOs. Note that things will not get into gear until the middle of January.

But of course, the year has been standout for new offerings. For 2020 so far, the Renaissance IPO Index has logged a sizzling 108.3% return. By comparison, the S&P 500 is up a 13.5%.

The year has also seen the popularity of SPACs (Special-Purpose Acquisition Companies). These are publicly traded companies that merge with operating companies. For the most part, SPACs have proven easier to structure than the traditional IPO.

Let’s take a look at five upcoming IPOs:

  • Certara (CERT)
  • PubMatic (PUBM)
  • DoorDash (DASH)
  • Airbnb (ABNB)
  • C3.ai (AI)

Upcoming IPOs: Certara (CERT)

Certara operates a software platform that uses biosimulation to accelerate the discovery and development of drugs. It is essentially a virtual trial, which involves virtual patients. The technology can help answer important questions like: What will the human response be to a drug? How will other drugs interfere with it? What are safe doses?

The company is the leader in this emerging space. Over 1,600 biopharma companies and academic institutions have used the system across 60 countries. Note that 17 global regulatory agencies license the software for new drug submissions, such as the FDA and Europe’s EMA.

For the first nine months of this year, the revenues reached $179 million, up from $155 million in the same period a year ago. The company also generated $5 million in profits.

The ROI (Return On Investment) for Certara can be significant because of the enormous costs of drug development. For example, one customer for Certara saved more than $500 million over a three year period.

For the IPO, the company plans to issue 24.4 million shares at a range of $19 to $22. The listing will be on the NASDAQ under the ticker of CERT. The lead underwriters include Jefferies, Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Credit Suisse (NYSE:CS), Barclays (NYSE:BCS) and William Blair.

PubMatic (PUBM)

For this week’s upcoming IPOs, PubMatic is one of the smaller ones. The company expects to raise about $100 million.

Founded in 2006, PubMatic operates an ad network that processes about 134 billion impressions daily. The focus has been on creating a system that helps customers make data-driven decisions with their ad campaigns to improve the ROI and marketplace liquidity.

PubMatic is omnichannel, with formats for both the web and mobile devices. There are currently about 1,100 publishers and app developers on the platform, which include biggies like Verizon (NYSE:VZ).

Although, the growth ramp for PubMatic has been moderate. For the first nine months of this year, revenues went from $79.5 million to $92.5 million, up about 16% or so. Yet the company is profitable.

The price range on the IPO is…

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