Cybersecurity Software Provider Evvolutions LeadTech Targets $11 Million U.S. IPO
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Donovan JonesInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryEvvolutions LeadTech Inc seeks $11.25 million in a U.S. IPO, targeting growth and working capital amid deteriorating financials.EVVO’s recent revenue growth lags the sector at 6% - 7.2%, with volatile margins, recent operating losses, and negative free cash flow.Valuation expectations are excessive: EV/EBITDA of 116x despite lumpy, project-centric unit economics and significant customer concentration risks.My recommendation is to sell (avoid) EVVO’s IPO, given worsening results, unpredictable cash flows, and a high-risk, low-float structure. NAJAnaja/iStock via Getty Images Evvolutions Is Growing Slowly, And Recent Results Are Deteriorating Evvolutions LeadTech Inc (EVVO) has filed to raise growth and working capital in an IPO of its Class A ordinary shares, according to SEC F-1 This article was written byDonovan Jones21.46K FollowersFollowDonovan Jones is an IPO research specialist with 15 years of experience identifying opportunities for high quality IPOs.He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Learn moreAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.