So far for the month of July the IPO market can claim success in raising over $180 million. While it doesn't put July on track to break any records, analysts are still optimistic overall. This week investors are getting a little more excited as two large and profitable companies are expected to price their IPO's. If they are successful, that will bring the July total from a small $180 million to over $1.5 billion!
Of the two companies expected to price this week, one is an international company. It's a 5-year old Japanese mobile messaging app with secular growth that plans to dual-list in Tokyo and New York. The other company is almost 100% US. Its a 70-year old company in the defensive space with positive cash flow and a dividend yield. While this may sound attractive we should note that the company has offered very little in the way of growth. .
LINE
The company is set to price on Monday, July 11, however due to listing rules in Tokyo, trading will not begin until Thursday in the US and Friday in Japan. At the current midpoint (the final midpoint will be set on Monday), LINE looks to be the largest tech IPO of 2016 and the largest US-listed tech IPO since Alibaba raised $22 billion in 2014.
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