Four or more companies could join the list soon
Of the three Minnesota companies that completed initial public offerings in 2017, only ASV Holdings was large enough to make our list. However, three IPOs in 2018, the merger of another into a public shell company and the spinoff of nVent Electric from Pentair might finally mean new competition for our list next year.
So far in 2018, 79 U.S. IPOs have set the price for their IPOs, a 23.4 percent increase over the same period a year ago, according to Renaissance Capital. Of the three Minnesota companies to complete IPOs this year, two could be large enough to make next year’s list.
Ceridian HCM Holding (CDAY) in Bloomington completed the largest-ever IPO in Minnesota on April 25. With a concurrent investment from private-equity owners and an overallotment total, proceeds were $630 million. Ceridian had annual revenue of $750.7 million in 2017, which would have placed it 34th on this year’s list.
Bridgewater Bancshares (BWB), also in Bloomington, completed its IPO on March 21. Its 2017 revenue was $66.3 million, with revenue growing an average of 30 percent the previous two years. Another 30 percent increase this year might edge the company onto the list.
Inspire Medical Systems Inc. (INSP) of Plymouth completed its IPO on May 3 The offering raised $124.2 million, but 2017 revenue was only $28.6 million so it could be a few years before a debut in the top 50.
ConvergeOne (CVON) of Eagan merged with a special-purpose acquisition corporation, Forum Merger Corp., on Feb. 23. Analysts who cover the global IT-services provider expect the company to report 2018 revenue of $1.48 billion.
The spinoff of nVent Electric PLC on May 1 from Pentair gives us another company to add to the list.
NVent could be the biggest addition to next year’s list. Analysts who cover the company expect revenue of $2.2 billion, which would be enough to put it in the top half of the list.
There could be three to four additions next year, but we already know that Mosaic will be moving its headquarters to Florida; no date has been given on the official move. Capella Education Corp. will also be leaving the list when it completes its $1.9 billion merger with Strayer Education. Headquarters of the combined company is expected to be in Herndon, Va., and the deal is expected to close later this year.