IPO Maravai LifeSciences
Revenues in 9M 2019 — 9M 2020
Invest in IPO Maravai LifeSciences
Maravai provides critical products to enable the development of drug therapies, diagnostics, novel vaccines and support research on human diseases. It has three principal businesses: Nucleic Acid Production, Biologics Safety Testing, and Protein Detection.
The Nucleic Acid Production business manufactures and sells products used in the fields of gene therapy, nucleoside chemistry, oligonucleotide therapy and molecular diagnostics, including reagents used in the chemical synthesis, modification, labelling and purification of deoxyribonucleic acid (“DNA”) and ribonucleic acid (“RNA). The Biologics Safety Testing business sells highly specialized analytical products for use in biologic manufacturing process development, including custom product-specific development antibody and assay development services. The Protein Detection business sells innovative labeling and detection reagents for researchers in immunohistochemistry.
More than 5,000 customers include the top 20 global biopharmaceutical companies ranked by research and development expenditures according to industry consultants, and many other emerging biopharmaceutical and life sciences research companies, as well as leading academic research institutions and in vitro diagnostics companies.
Maravai participates in three distinct market segments: nucleic acid production, biologics safety testing and protein detection, which together represented approximately $8.4 billion in annual spending in 2019 and which are expected to grow at a 15% compound annual growth rate (“CAGR”) through 2023.
Until the 2020 fiscal year, Maravai had incurred losses for each fiscal year since inception, it may incur losses in the future and may not be able to generate sufficient revenue to maintain profitability.
The company depends on a limited number of customers for a high percentage of revenue. If it cannot maintain current relationships with customers, fail to sustain recurring sources of revenue with existing customers, or if it fails to enter into new relationships, future operating results will be adversely affected.
Certain Maravai products are used by customers in the production of vaccines and therapies, some of which represent relatively new and still-developing modes of treatment. Unforeseen adverse events, negative clinical outcomes, or increased regulatory scrutiny of these will negatively impact Maravai business reputation and financial results.
Maravai (MRVI) plans to sell 50 million shares at a price range of $24 to $27. The company intends to raise as much as $1.3B in an IPO of its common stock at about $7B valuation.
The company booked $222M in revenue for the last 12 months. Gross margin is around 70%. The company is growing rapidly with revenue growth of 74% YoY in the first 9 months of 2020.
Similar public company is Thermo Fisher Scientific (TMO), which is trading at 7x sales with revenue growth of 36% and gross margin of 47%. Maravai is asking investors to pay 31.5x sales with revenue growth of 74% and gross margin of 70%, which is a higher-than-average valuation. This investment idea has a medium potential return of up to 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.