Kingsoft Cloud IPO Defies Expectation as Vroom angles for debut

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Last Friday something very odd happened: the public debut of Kingsoft Cloud, a company that we’ve covered before. I’m nigh-incredulous about this IPO for the host of issues that we discussed when the company first filed. Since then, IPOs have only gotten only stranger.

Kingsoft is not the only company looking to tap the public markets. Vroom, which has raised over $700 million according to Crunchbase, is looking to go public this summer. The company sells used cars, which makes it going public all the more fun; aren’t car sales in the toilet?

But that IPO filing is still private, pushing Vroom’s debut at least a month into the future. Today, then, let’s work understand why Kingsoft Cloud successfully going public is surprising. And why what happened after it priced is even more of a shock.

This company went public?

When Kingsoft Cloud filed its F-1 to go public, we were in awe of its wild and weird financial results.

Airbnb is buying trust during the COVID-19 travel slowdown

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Airbnb’s recent moves in the wake of a global travel slowdown are interesting and worth understanding in chronological order. What it details is a company spending heavily today to keep up its future health. Demand will return to the world travel market in time — how much, no one knows — and Airbnb wants to be a well-liked participant in the return to form.

Building off our last look at the company, we should understand how Airbnb intends to not only survive, but come out the other side of the pandemic with enough user trust to get back to work

An IPO promise

Unpacking Procore’s S-1 filing

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today we’re in for a treat, as we get to dig into Procore’s S-1 filing. In case you aren’t familiar, Procore sells software that helps manage construction projects, but it offers more than a single app: Procore’s service allows other apps to plug into it, making it a platform of sorts. The company filed to go public last Friday, meaning that we have endless new numbers to delve into.

Even better for us, Procore is a SaaS company, which means we can understand its numbers.

Procore lists $100 million as its IPO placeholder raise, intends to list on the NYSE as PCOR and its debut is being underwritten by Goldman, J.P. Morgan, Barclays and Jefferies.

Why do we care about this particular IPO? A few reasons. First, Procore filed to go public after the worst week in the stock market since the 2008 crash. That’s either calculated bravery, unbridled hubris or accidental folly. We’ll see. And second, the company’s backers are well-known: Bessemer, Greater Pacific Capital, ICONIQ, Dragoneer and Tiger, according to Crunchbase.