Olaplex and On: Recent IPOs Pull Back After Their Debut Quarterly Reports

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The IPO market is setting new records as 2021 nears and end. Today we’ll review some recent deals, including three companies that issued results for the first time.

On Holding (ONON) is one of the biggest movers in recent weeks. The Zurich-based sneaker company went public on September 14 for $24 a share. That was the above the $20-22 range, which had been increased from the initial $18-20 price talk.

ONON jumped toward $40 after its initial public offering (IPO) before pulling back. Its big move came on November 16 after earnings, revenue and guidance surprised to the upside. Management predicted “hyper-growth” as coronavirus disruptions ease at its Vietnamese suppliers.

“We have significant pricing power,” co-founder Caspar Coppetti said on the conference call. “We are planning selective price increases” in 2022, affecting 40 percent of its North American business.

Founded in 2010, ONON has benefited from relationships with professional athletes like Roger Federer. Its Cloudtec cushioning system is one of the company’s big selling points.

See also: Rivian Goes Public in Hotly Anticipated Electric Truck IPO

Thoughtworks and Olaplex

Thoughtworks (TWKS) is an IT-consultancy that went public on September 14 for $21, above the $18-20 range. It traded above $34 in its first week before pulling back.

TWKS reported better-than-expected earnings and revenue on November 15. The shares have drifted since.

On Holding (ONON), daily chart, showing rally after quarterly results.

Olaplex (OLPX) is the youngest firm covered today, being founded in 2014. The maker of beauty products went public for $21 on September 29, above its $17-19 range. It pushed toward $30 before pulling back to $25.72 yesterday.

OLPX says its patented Bis-Aminopropyl Diglycol Dimaleate rebuilds hair at the molecular level. The company has focused marketing via three channels: beauticians, specialty retailers and direct consumer sales. Revenue increased 81 percent to $161.6 million last quarter, more than 10 percent above the consensus estimate.

Gitlab (GTLB) is the most recent IPO. It went public for $77 on October 13, above the $66-69 range. The stock traded as high as $137 on November 9 before pulling back toward $100 this week.

GTLB’s platform lets software developers and organizations share and manage their computer code. It competes with GitHub, the larger system owned by Microsoft (MSFT).

GTLB is the only company on today’s list that hasn’t announced earnings yet. Its inaugural quarterly report is due after the closing bell on Monday, December 6.

CompanyBusinessMarket CapRevenue
Growth
Olaplex (OLPX)Hair products$18 billion81%
On Holdings (ONON)Athletic Apparel$17.2 billion68%
Gitlab (GTLB)Software$17 billion69%
Thoughtworks (TWKS)IT services$10 billion45%
Source: Yahoo Finance, SEC filings
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