US IPO Week: PE and HR hit the market in IPO 2 week
Private equity and outsourced human resources are entering the IPO market in the coming week, with two IPOs expected to raise a total of $ 1.2 billion.
TPG (TPG) plans to raise $ 1.0 billion at a market cap of $ 9.3 billion. TPG is among the world’s top five private equity firms in terms of capital raised from 2015 to 2020, closing the most recent quarter with $ 109 billion in assets under management across 17 active products. Its investment approach is built around five platforms: Capital, Growth, Impact, Real Estate and Market Solutions. The majority of the company’s assets are illiquid and require fair value estimates, which could result in losses.
Justworks (JW) plans to raise $ 214 million for a market cap of $ 2.2 billion. The company, led by its founder, provides an outsourced human resources platform to more than 8,000 small and medium-sized businesses. Its clientele is geographically concentrated, with more than half of the employees on its sites located in New York. Justworks has an established history of growth and has recently become profitable.
|Calendar of IPOs in the United States|
|Issuer Company||Size of business Market capacity||Price range Registered parts||Top Bookrunners|
|Justworks (JW) New York, NY||$ 214M $ 2,210M||$ 29 – $ 327,000,000||GoldmanJP Morgan|
|Provides an outsourced payroll and human resources software platform to SMEs.|
|TPG (TPG) Fort Worth, Texas||$ 1,000 million $ 9,329 million||$ 28 – $ 3,133,900,000||JP MorganGoldman|
|Global alternative asset manager.|
Street searches are expected for six companies and blocking periods will expire for up to 14 companies.
Overview of the IPO market
Renaissance IPO indices are market capitalization weighted baskets of newly opened companies. As of 1/6/22, the Renaissance IPO was down 10.1% year-to-date, while the S&P 500 was down 1.4%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and major ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO index was down 4.9% year-to-date, while the ACWX was down 0.8%. Renaissance Capital’s international IPO ETF (IPOS) tracks the index, and major ETF holdings include Volvo Car Group and EQT Partners.
Editor’s Note: The bullet points for this article were chosen by the editors of Seeking Alpha.