US IPO Week Ahead: Rocket Companies shoots for the moon in an 8 IPO week

Eight IPOs and one SPAC are scheduled to raise $4.8 billion in the week ahead, with Rocket Mortgage parent Rocket Companies (RKT) slated to complete the year’s largest US IPO to date.

Several companies could join the IPO calendar in the week ahead, including…

net lease REIT NetSTREIT (NTST), oncology biotech Inhibrx (INBX), and insurance software provider Duck Creek Technologies (DCT).

Rocket Companies (RKT) plans to raise $3.2 billion at a $42 billion market cap, with proceeds going to the parent, an affiliate of founder Dan Gilbert. Its flagship business, Rocket Mortgage, is the leading online platform for applying for a mortgage, contributing to the company’s $5.9 billion in annual revenue with $1.3 billion in earnings. Rocket has demonstrated growth and profitability, and its share of US mortgage originations grew to 9% in the 1Q20, though that is expected to fall in the 2Q.

Rackspace Technology (RXT), a leading provider of cloud management services, plans to raise $754 million at a $4.8 billion market cap. Taken private by Apollo Global in 2016, the company served over 120,000 customers across 120 countries in 2018 and 2019, including more than half of the Fortune 100. Rackspace is profitable on an EBIT basis, but quarterly revenue growth has been lumpy, and margins have fluctuated.

Health center chain Oak Street Health (OSH) plans to raise $250 million at a $3.8 billion market cap. Fast-growing and unprofitable, the company has demonstrated the ability to scale its business model with positive contribution margins and 90% patient satisfaction. It operates 54 sites in the greater Midwest and plans to open 25 new sites a year, though expansion in new markets like Dallas and New York City (where One Medical (ONEM) operates) may be challenging.

E-commerce platform BigCommerce (BIGC) plans to raise $130 million at a $1.4 billion market cap. The company serves approximately 60,000 online stores in 120 countries, while increasing its share of enterprise customers. BigCommerce is coming to market at a discount to close peer Shopify (SHOP; +5,924% from 2015 IPO), which has higher revenue, growth, and profitability.

Medical device maker Acutus Medical (AFIB) plans to raise $125 million at a $457 million market cap. The company’s AcQMap imaging and mapping system offers a new approach to mapping the drivers and maintainers of cardiac arrhythmias and was made available in the US in May 2018. In the 1Q20, there were 31 customer sites with AcQMap consoles and workstations, expected to increase to 38 in the 2Q.

Gene therapy biotech Freeline Therapeutics (FRLN) plans to raise $125 million at a $574 million market cap. The company’s lead candidate, FLT180a, an investigational gene therapy medicinal product candidate for the treatment of hemophilia B, is currently in a Phase 1/2 trial and has dosed 10 patients as of June 15, 2020.

In its second IPO attempt, customer support services provider IBEX (IBEX) plans to raise $100 million at a $397 million market cap. The company’s customers include large telecoms, and it is expanding its client base into the “new economy” with customers like Amazon and Lyft. However, its revenue is still highly concentrated, and largest customer Frontier Communications recently filed for Chapter 11.

Solid tumor biotech Checkmate Pharmaceuticals (CMPI) plans to raise…

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