Intriguing IPOs: KinderCare Learning Centers (KLC)

Some companies make you ask really hard questions. For me, KinderCare is one such company.

Caring for Children at the Orphanage in Haarlem: three Acts of Mercy, Jan de Bray, 1663, oil on canvas, (Frans Halls Museum)

How do you value a business with an existential threat?

I know it is a bit of a strange question, but I'm pondering it as I look at the about KinderCare Learning Companies (NYSE: KLC) IPO.

Quite a few companies piqued my interest lately, but most quickly moved to the “too hard” pile. I wish I were better at analyzing biotech and medical device companies. A couple of companies going public recently could be attractive — Upstream Bio (NASDAQ: UPB) is developing a biologic to treat Chronic Obstructive Pulmonary Disease (COPD), and CeriBell (NASDAQ: CBLL) is a commercial-stage medical device company with a monitoring headband used to detect non-convulsive seizures.

Also, Chain Bridge Bancorp (NYSE: CBNA) is a nanocap bank with a unique niche (it caters to campaign committees, party committees, and political action committees) and has grown its deposit rate by 18% annually for the past decade. After a cursory glance at the prospectus, I realized there were too many moving parts for me to wrap my head around it.

KinderCare is in an industry we all hope can improve (child care), and Kinder is one of a few corporate entities that may have a solution.

Let’s dig in.

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