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SDC & WE

Among the bigger deals on tap, teeth-straightening startup SmileDirectClub Inc. said early Tuesday that it is aiming to raise up to $1.29 billion in its IPO by selling 58.5 million shares priced at $19 to $22 a pop. The Nashville-based company will use the proceeds of the deal to pay bonuses, redeem LLC units from pre-IPO investors and to fund a dividend to those investors, with the rest to be spent on general corporate purposes, according to the company’s prospectus. The company is planning to list on Nasdaq under the ticker symbol “SDC.”

SmileDirect’s model involves shipping clear aligners directly to customers, whose progress is then monitored remotely by licensed dentists or orthodontists. Customers either go to a so-called SmileShop and get a free 3-D image taken of their teeth or buy a kit online to make an impression of their teeth to mail to SmileDirectClub. A dental professional then reviews the information and prescribes aligners if appropriate.

That deal is expected to land next week, which may put it ahead of the IPO of WeWork’s parent, The We Co. WE, +0.00%, which will be at least a billion dollars, according to its last filing with the SEC. That sum is likely a placeholder until the company sets terms. The office-space-sharing company is planning to list three classes of stock that carry different voting rights, ensuring that co-Founder and Chief Executive Adam Neumann will control most of the voting power once the deal is closed.

Among the risk factors for that company are its long-term lease commitments of nearly $50 billion and the fact it is still posting significant losses.

Note: I'm wondering if SDC is the reason ALGN has been looking anemic this year?



PTON

Peloton Interactive Inc. PTON, +0.00%, the provider of interactive exercise machines and fitness classes, has said it aims to raise at least $500 million in its IPO. The company sells exercise bikes and treadmills and streams fitness classes to those devices through a touch screen included with the machines. It commands a premium price of thousands of dollars for its fitness bikes and $40 a month for a subscription to its classes, over 40% more than it costs to produce both the hardware and content.

Peloton has more than half a billion dollars in losses since it was formed in 2012, although revenue has doubled to more than $900 million in its fiscal year to end June.


EDR

Meanwhile, Endeavor Group Holdings Inc. is expected to pursue its planned IPO sometime in the fall, according to Smith. That deal was pushed back after Wanda Sports Group Co.’s WSG, -6.30% July IPO flopped, with the stock down 34% from its issue price.

Endeavor combines a talent agency with the world’s biggest mixed-martial-arts organization, UFC, and a range of other assets. The company is planning to list on the New York Stock Exchange, under the ticker symbol “EDR.” The company has long-term debt of $4.6 billion and total liabilities of $7 billion, according to its prospectus.

“Wanda Sports is its closest peer with a similar business model of owning sports events and media rights,” Smith said. “Endeavor is a challenge for some people. It is a complicated business and highly leveraged.”



NET

Separately, Cloudflare, a cloud-based network platform that promises security, enhanced performance of business-critical applications, and “eliminating the cost and complexity of managing individual network hardware,” said it plans to offer 35 million shares priced at $10 to $12 each, raising $420 million at the top of that range.

The company is planning to list on the NYSE, under the ticker symbol “NET.”



Rounding out the coming parade of IPOs are 10x Genomics, IGM Biosciences, and Satsuma Pharmaceuticals Inc.

TXG, IGMS, STSA

10x Genomics said it plans to offer 9 million shares priced at $31 to $35 each, raising $315 million at the top of that range. The life science technology company is planning to list on Nasdaq under the ticker symbol “TXG.” IGM Biosciences IGMS, +0.00% is planning to offer 7.8 million shares in its IPO, priced at $15 to $17 each. The company would raise $132.6 million at the top of that range. IGM is planning to list on Nasdaq, under the ticker symbol “IGMS.” Satsuma STSA, +0.00%, which specializes in migraine treatments, said it will offer 5 million shares in its IPO priced at $14 to $16 each, raising up to $80 million. The San Francisco-based startup is planning to list on Nasdaq, under the ticker symbol “STSA.”
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