JAMF IPO Could Spur Further Interest In Renaissance ETF | ETF Trends

The U.S. initial public offering market has been heating up once again, with eight deals in the works recently, making the start of June one of the most hectic weeks of the year thus far.

Now, JAMF, which produces a device management system that has been focused on Apple mobile security since 2002 is set to release its IPO.

JAMF’s IPO prospectus lists Apple’s name a whopping 533 times. The company states that its mission is to “help organizations succeed with Apple.” One of its key risk factors is that customers become dissatisfied with Apple products, which is where it steps in to help.

In the device management company’s prospectus, which was released on Tuesday, the JAMF feels comfortable about attaching its success to the iPhone-maker that continues to notch fresh highs and is valued by investors at over $1.5 trillion.

 “Apple is ubiquitous,” JAMF says in the industry background section of its filing. “It has transformed the technology landscape by placing the user first and designing everything around maximizing the Apple user experience.”

JAMF assists companies in safely carrying out Apple products, and has exploded recently as apple devices have gained popularity in business situations, uniting them and providing IT teams with the tools to manage them. In the first quarter, revenue powered up 37% from a year ago, to $60.4 million, and the company’s gross margin rose to 75% from 70%, as more customers subscribed to its offering. However, JAMF is still losing money, though its net loss is fell by $0.7 million. The device company’s competitors include VMware, Microsoft, and IBM.

There could be a slight issue for JAMF however, as just last week Apple said they were acquiring, Fleetsmith, a four-year-old company, whose software makes it easier to remotely configure, wipe and deploy devices.

“Apple could leverage this platform, whether through additional investment or the consolidation of other competitors of ours, to compete more directly with the scale and breadth of product offerings we provide,” the JAMF filing warns.

JAMF’ prospectus seems to leverage the fact that the coronavirus trends in remote working are likely to remain long after the virus is contained.

“The COVID-19 pandemic has accelerated the need for solutions to empower remote work, distance learning, and telehealth,” the prospectus says. “While these trends were gaining mind share prior to the pandemic, recent challenges have added momentum to these digital transformation changes that will last long after the struggles related to COVID-19 have passed.”

As IPO activity rebounds, ETF investors could continue to take advantage of the potential growth opportunity in companies like JAMF through a targeted IPO-related ETF like the  Renaissance IPO ETF (IPO).

IPO has been robust in 2020, gaining nearly 23% so far in 2020, largely due to the inclusion of recent IPOs of digital companies and others that investors are favoriting as shelter-in-place restrictions have handicapped workers, leading them to favor working-from-home products and services, such as Zoom and Slack. IPO also added biotech Moderna, which is developing a COVID-19 vaccine, and had a dramatic boost due to favorable trial news.

Experts like Stacy Cunningham, president of Intercontinental Exchange Inc’s New York Stock Exchange, also feel that initial public offerings have gained steam since the beginning of the coronavirus pandemic and the pipeline going forward looks strong, Reuters reported.

“It looks like it’s shaping up to be a very strong second half of the year,” Cunningham told CNBC.

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