So far, 2020 has seen many IPOs. Even amid the ongoing COVID-19 pandemic, companies want to go public in this market. Technology companies have accounted for most of the IPOs this year. However, the StepStone IPO is also going to be interesting. StepStone’s IPO date is Wednesday, Sept. 16. Here are all the details about the company's IPO.
What is StepStone Group?
StepStone Group is a global private market investment firm. The company provides investment solutions and advisory and data services. StepStone partners with its clients to build private market portfolios that meet objectives across asset classes like real estate, private debt and equity, and infrastructure. The company is also one of the world’s biggest investors in alternative assets. StepStone's clients include some of the largest public and private defined benefit and defined contribution pension funds, insurance companies, sovereign wealth funds, and high net-worth individuals.
StepStone has over $296 billion of total capital allocations, including over $67 billion in assets under management. The company uses an active investment approach to serve its clients. Its research platform is comprehensive with more than 190 professionals who analyze investment opportunities. StepStone invests its clients’ funds with fund managers like Blackstone Group, KKR&Co. Inc. In turn, the company gets management fees from its clients.
When is StepStone going public?
StepStone is going public on Sept.16 and the trading will start the same ay. The offering is expected to close on Sept. 18 — subject to meeting customary closing conditions. StepStone is offering 17.5 million of its class A common stock at an IPO price of $18 per share. Also, the company has granted underwriters a 30-day option to purchase an additional 2.625 million shares.
StepStone sold shares to 12 investors in August 2019 and raised about $115 million. At the time, Fidelity and T.Rowe bought shares in the company.
What is StepStone stock's IPO price?
On Sept. 16, StepStone announced the pricing for its IPO. The shares have been priced at $18 per share, which implies a total IPO value of $315 million. The IPO price is above the previously provided range of $15 to $17. As a result, the company will raise 13 percent more proceeds than previously anticipated. StepStone will trade on Nasdaq under the ticker symbol "STEP."
Should you buy the StepStone stock IPO?
StepStone’s listing follows the listing of its peer, Hamilton Lane Inc., which completed its IPO in 2017 and raised $190 million. Since then, Hamilton Lane’s stock price has grown by 232 percent. The stock price surged by 12.6 percent on the first day of trading. According to Reuters, “The management fee revenue the firm generates from allocating investments to private equity funds makes it attractive to stock market investors.”
Going by Hamilton Lane's price performance and IPO investor sentiment, StepStone’s IPO should be a good bet for investors. The company's business is supported by strong fundamentals, a strong client base, and a robust research platform.