U.S. Stocks: IPO busy season arrives as Snowflake, JFrog boost listing plans

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September 15, 2020 10:40 AM

While investors will focus on traditional IPOs this week, from next Wednesday all eyes will be on two direct listings.

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Bloomberg: Software companies Snowflake Inc. and JFrog Ltd. increased the size of their U.S. initial public offerings on Monday, setting the scene for several busy weeks ahead for new technology listings.

Cloud-data company Snowflake bumped its IPO price range to $100 to $110 a share from $75 to $85, bringing the amount it’s aiming to raise to as much as $3.08 billion. The offering could value Snowflake, which was last privately valued at about $12.5 billion, at more than $30 billion, based on the number of shares outstanding after the offering.

JFrog, which makes tools for software developers, raised its price target to $39 to $41 per share from $33 to $37, an amended prospectus shows. Existing shareholders are selling 3.57 million shares in addition to the 8 million shares offered by the company. At the top end of the new range, the IPO could raise $474 million.

With less that 50 days to go until the U.S. Presidential election, companies are rushing to complete their listings before investors hunker down to avoid potential volatility. A total of 15 companies, including blank-check firms, are set to price IPOs on U.S. exchanges this week and could raise a combined $8.3 billion, according to data compiled by Bloomberg.

While investors will focus on traditional IPOs this week, from next Wednesday all eyes will be on two direct listings — an alternative route to market that’s been untested since Slack Technologies Inc. made its debut in June 2019. Palantir Technologies Inc. and Asana Inc. are pursuing direct listings that don’t raise capital, and are planning to list on or about Sept. 23 and Sept. 30 respectively.

There are more IPOs to come. GoodRx Holdings Inc. and its stockholders set terms on Monday for a Nasdaq listing that could raise as much as $969 million. The online marketplace for prescription drugs will offer 23.4 million shares while its shareholders plan to sell 11.2 million, a filing shows. The shares are offered at $24 to 28 apiece.

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