This week marks an eventful week for initial-public-offerings (IPO) with companies such as Thoughtworks (TWKS) and On Holding (ONON) gearing up for their launch on the New YorkStock Exchange (NYSE).
Thoughtworks is a Chicago-based technology consultancy company expected to be valued upwards of $6 billion. Thoughtworks’ business model includes Digital Product DevelopmentServices, Digital Experience and Distributed Agile software development. The company was founded by Neville Roy Singham and currently the CEO of the company is Guo Xiao.
Thoughtworks is expected to offer 36.8 million shares split between the company and selling shareholders. TWKS will trade on the Nasdaq and is reported to trade between $18 to $20 a share at launch but that number can change as investors have seen in the past. The company reported a revenue of $803 million in 2020, of which $79 million was net income.
Another formidable deal expected this week is the Swiss athletic-footwear manufacturer OnHolding. ONON is expected to be valued at $6 billion and is reported to offer 31.1 million shares also priced between $18 to $20. The company also is in collaboration with Roger Federer who also holds shares of the company. Underwriters of the offering include Goldman Sachs, MorganStanley, JPMorgan Chase, UBS Group, and Credit Suisse.
According to the IPO documents the company reported a net income of 3.8 million Swiss Francs($4.1 million) through June 30 of this year after reporting a loss of 33 million francs the prior year. Their revenue is 315 million francs ($342 million) through June 30 which is a far improvement from 170.9 million francs last year.
Assuming everything stands as is, 2021 will become the biggest year for IPO proceeds ever, beating the record of $97 billion in 2000 during the dot-com boom by raising an expected $125billion this year.
“After the long summer break, this week is a litmus test for upcoming tech, biotech, and consumer IPOs,” says Bill Smith, founder and CEO of Renaissance Capital, an investment research firm focusing on IPOs.Other IPOs this week include Sportrade Group AG, Dutch Bros Inc., Definitive Healthcare Corp., Enact Holdings Inc., and plenty more.