Just one SPAC priced this past week in the wake of the US presidential election. Despite uncertain results, the IPO market bounced back from the previous week’s downturn, with the IPO Index gaining 12.5%. New filings trickled in, priming the pipeline for post-Thanksgiving IPO listings.
The week’s sole pricing, Roman DBDR Tech Acquisition (DBDRU) raised $220 million to acquire a business in the technology, media, and telecom (TMT) industries. The SPAC is led by Co-CEO and Chairman Donald Basile, an executive officer at Monsoon Blockchain, and Co-CEO Dixon Doll, the CEO of DBM Cloud Systems and Managing Director of Longstreet Ventures.
In non-US news, Ant Group’s IPO was postponed by Shanghai Stock Exchange officials on Tuesday, just days ahead of its expected listing. The dual-listing in Shanghai and Hong Kong was anticipated to be the largest IPO ever, expected to raise $34 billion at a $313 billion valuation. Ant Group’s offering now faces a delay of at least six months and will likely get a valuation haircut.
| 1 IPO During the Week of November 2nd, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 11/06 |
| Roman DBDR Tech Acq. (DBDRU) | $220M | $275M | 0% | +0% | +0% |
| Blank check company targeting the TMT industries. | |||||
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Three IPOs and six SPACs submitted initial filings this past week. Russian e-commerce platform Ozon (OZON.RC) filed for an estimate $500 million US IPO. Consumer lending platform Upstart (UPST) filed to raise $100 million, and financial services provider Midwest Holding (MDWT) filed to raise $50 million.
Mark Ein and Dyson Dryden’s fifth SPAC Capitol Investment V (CAP.U) filed to raise $300 million. Live Oak Merchant Partners’ second SPAC Live Oak Acquisition II (LOKB.U), Tiga Investment’s SPAC Tiga Acquisition (TINVU), and Reid Hoffman and Mark Pincus’ second SPAC Reinvent Technology Partners Z (RTPZ.U) all filed to raise $200 million. Technology SPAC Benessere Capital Acquisition (BENEU) and biopharma SPAC Jiya Acquisition (JYAC) both filed to raise $100 million.
| 9 Filings During the Week of November 2nd, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Upstart (UPST) | $100M | Financials | Goldman |
| Leading cloud-based consumer lending platform. | |||
| Capitol Investment V (CAP.U) | $300M | SPAC | Citi |
| Fifth blank check company formed by Mark Ein and Dyson Dryden. | |||
| Live Oak Acquisition II (LOKB.U) | $200M | SPAC | Jefferies |
| Second blank check company formed by Live Oak Merchant Partners targeting a high-growth business. | |||
| Tiga Acquisition (TINVU) | $200M | SPAC | Credit Suisse |
| Blank check company formed by Tiga Investments. | |||
| Benessere Capital Acq. (BENEU) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting middle market technology businesses in the Americas. | |||
| Midwest Holding (MDWT) | $50M | Financials | Piper Sandler |
| Underwrites and markets life insurance products in the US. | |||
| Jiya Acquisition (JYAC) | $100M | SPAC | Citi |
| Blank check company formed by Samsara BioCapital targeting the biopharmaceutical sector. | |||
| Ozon (OZON.RC) | $500M | Technology | Morgan Stanley |
| Leading Russian e-commerce platform. | |||
| Reinvent Tech Partners Z (RTPZ.U) | $200M | SPAC | Morgan Stanley |
| Second blank check company formed by Reid Hoffman and Mark Pincus targeting the tech sector. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/5/20, the Renaissance IPO Index was up 82.6% year-to-date, while the S&P 500 was up 8.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 40.3% year-to-date, while the ACWX was down 0.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
