Two SPACs entered the public market this past week, raising nearly $320 million. Three companies and one SPAC submitted initial filings.
dMY Technology (DMYTU) raised $200 million at a market cap of $250 million. The blank check company, led by former Glu Mobile CEO Niccolo de Masi, is aiming to acquire a mobile app company in a consumer oriented segment such as gaming or dating.
East Stone Acquisition (ESSCU), a SPAC formed by Chinese private equity firm East Stone Capital, raised $120 million at a market cap of $149 million. The company is targeting the fintech sectors in North America and Asia.
| 2 IPOs During the Week of February 17th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 02/21 |
| East Stone Acquisition (ESSCU) | $120M | $149M | 0% | +0% | +0% |
| Blank check company formed by East Stone Capital to acquire a fintech business. | |||||
| dMY Technology Group (DMYTU) | $200M | $250M | 0% | n/a | +0% |
| Blank check company targeting a consumer internet or mobile app business. | |||||
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Online DTC insurance platform SelectQuote (SLQT) filed to raise up to $100 million on the NYSE, although the deal size is likely a placeholder and we estimate the deal could $250 million. Inari Medical (NARI), a medical device maker for the treatment of venous diseases, filed to raise $100 million on the Nasdaq and Micro-cap video streaming platform FreeCast (FRCT.RC) filed for a $17 million IPO on the Nasdaq. DFP Healthcare Acquisitions (DFPHU), a SPAC formed by Deerfield Management, filed to raise $200 million on the Nasdaq.
| 4 Filings During the Week of February 17th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| DFP Healthcare Acq. (DFPHU) | $200M | SPAC | Deutsche Bank |
| Blank check company formed by Deerfield Management targeting the healthcare industry. | |||
| Inari (NARI) | $100M | Health Care | BofA |
| Medical device company for venous diseases. | |||
| SelectQuote (SLQT) | $250M | Financials | Credit Suisse |
| Provides an online DTC insurance platform. | |||
| FreeCast (FRCT.RC) | $17M | Technology | Alexander Capital |
| Provides an integrated platform for video streaming services. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/20/20, the Renaissance IPO Index was up 12.8% year-to-date, while the S&P 500 had a gain of 4.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was up 5.5% year-to-date, while the ACWX was down 1.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
