IPOs this week : Nov. 8 - 12, 2021 (wk 45)

IPOs expected to price

• Rivian Automotive (RIVN) (see preview below), CI&T (CINT), Expensify (EXFY) and Third Coast Bancshares (TCBX) on November 10
• Weave Communications (WEAV) and Backblaze (NASDAQ:BLZE) on November 11. 

It is also round two for Hertz Global Holdings (OTCPK:HTZZ), with the rental car company having a re-IPO under the old ticker HTZ. Hertz plans to offer 37.1M shares at $25 to $29 each. At the midpoint of the indicated range, Hertz would have a fully diluted market value of $13.9B. As part of the offering, Hertz intends to repurchase between $250M to $500M worth of shares from the underwriters. Knighthead Capital and Certares Management will still own about 37% of Hertz after all the smoke clears. The Hertz offering is expected to attract quite a bit of attention following the high-profile agreements with Tesla (NASDAQ:TSLA) and Uber Technologies (NYSE:UBER), as well as the meme rally explosion of shares of Avis Budget Group (NASDAQ:CAR).

IPO quiet period expirations: Analysts can start posting ratings on Gitlab (NASDAQ:GTLB), AvidXchange (NASDAQ:AVDX), Ihs Holding (NYSE:IHS), Lucid Diagnostics (NASDAQ:LUCD), Healthcare Triangle (NASDAQ:HCTI) and Xortx Therapeutics (NASDAQ:XRTX) on November 8. The quiet periods expire on Paragon 28 (NYSE:FNA) and MiNK Therapeutics (NASDAQ:INKT) on November 9.

IPO lockup expirations

• Global-e Online (NASDAQ:GLBE), IPower (NASDAQ:IPW), SimilarWeb (SMWB)and Flora Growth (NASDAQ:FLGC) on November 8. 

Of the last 20 IPO lockup periods, 16 of the stocks saw a share price decline the day before the lockup period ended. Only 8 stocks saw a decline on the same day as the lockup expiration, but then 12 of the stocks saw a decline on the day after the expiration. The general trend was for more selling pressure in front of the expirations.

Rivian Automotive IPO preview: 

The electric vehicle sector will have another stock generating buzz with Rivian Automotive (RIVN) planning to raise $9.7B in its initial public offering by selling 135M shares at $72 to $74 per share. Including stock options and restricted units, the implied valuation for Rivian is over $62B, which is above the market caps of Honda Motors and Ferrari. In the filing, Rivian (RIVN) says its began making customer deliveries of the R1T pickup truck in September and produced 180 R1Ts and delivered 156 R1Ts by the end of October. Most of the deliveries so far have been to Rivian employees, but the company expects to ramp deliveries to third-party customers as the production rate accelerates. Rivian plans to launch and commence customer deliveries for the R1S SUV in December following the completion of ongoing vehicle validation and testing. By the end of the year, the electric vehicle upstart intends to produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss. Rivian (RIVN) also highlighted its ecosystem in advance of the IPO, which includes vehicle technology, the Rivian Cloud, product development, analytics, accessories and services. The ecosystem is described as competitive in comparison to peers. Important to the upside case, Rivian (RIVN) estimates its total addressable marker at $9T and its serviceable available market at $1T.