Updated Monday, 12/7.
The unicorn IPO parade is set to begin in the week ahead, with DoorDash (DASH) and Airbnb (ABNB) leading the way. A total of nine IPOs and two SPACs are scheduled to raise $7.8 billion.
Delivery service giant DoorDash (DASH) plans to raise $3.1 billion at a $34.7 billion market cap. With a 50% share of the US market, DoorDash is North America’s largest delivery service, facilitating over 900 million orders to date. The company turned profitable on an EBITDA basis and posted positive free cash flow in the 9mo20. However, it has invested heavily in S&M, causing losses to spike in 2019, and it faces significant competition. DoorDash had planned to raise $2.6 billion before increasing the range on Friday.
Home-sharing startup Airbnb (ABNB) plans to raise $2.4 billion at a $31.8 billion market cap. A clear leader in the short-term rental space, Airbnb supported over 327 million nights booked in 2019. Thanks to its asset-light model and global network, Airbnb has been the fastest hospitality company to rebound from COVID-19, despite monthly bookings still not reaching pre-shutdown levels. While unprofitable, the company has posted positive free cash flow since 2016.
C3.ai (AI) plans to raise $504 million at a $4.3 billion market cap. Led by an experienced management team, C3 has developed a suite of low- and no-code software tools to design, develop, and operate a variety of enterprise-scale applications. Unprofitable, the company’s revenue growth slowed sharply in the MRQ and sales have been lumpy.
Certara (CERT) plans to raise $500 million at a $3.1 billion market cap. Profitable with decent growth, the company offers an integrated, end-to-end platform to conduct virtual trials using virtual patients to predict how drugs behave in different individuals. Its software is used by more than 1,600 biopharmas and academic institutions across 60 countries, including the top 35 biopharmas by R&D spend in 2019.
AI drug discovery platform AbCellera (ABCL) plans to raise $357 million at a $4.9 billion market cap. The company offers a full-stack, artificial intelligence-powered drug discovery platform that searches and analyzes a database of natural immune systems to find antibodies that can be developed as drugs. As of September 30, 2020, the company had 94 discovery programs that are either completed, in progress, or under contract with 26 partners.
Hydroponics supplier Hydrofarm Holdings Group (HYFM) plans to raise $130 million at a $520 million market cap. A pick-and-shovel cannabis play, Hydrofarm distributes and manufactures controlled environment agriculture equipment and supplies, primarily serving the US and Canadian markets. The company turned profitable in the 9mo20, and growth accelerated.
AdTech platform PubMatic (PUBM) plans to raise $100 million at a $953 million market cap. Profitable with decent growth, the company provides a specialized cloud infrastructure platform that enables real-time programmatic advertising transactions. Several insiders are selling on the IPO.
In its second attempt to go public, gene therapy developer 4D Molecular Therapeutics (FDMT) plans to raise $100 million at a $491 million market cap. 4D is developing product candidates using its targeted and evolved AAV vectors, initially focusing on ophthalmology, cardiology, and pulmonology. It has three candidates in Phase 1 or 1/2 trials, and two additional candidates for which it expects to file INDs in the 2H21.
Late-stage French biotech Nanobiotix (NBTX) plans to raise $95 million at a $537 million market cap. The company completed the regulatory process for the CE mark of lead candidate NBTXR3 in April 2019, allowing the product to be commercialized in the EU for the treatment of locally advanced soft tissue sarcoma under the brand name Hensify.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Concord Acquisition (CND.U) New York, NY |
$200M $256M |
$10 20,000,000 |
Cowen |
| Blank check company formed by Atlas Merchant Capital targeting financial services and FinTech. | |||
| Mudrick Capital Acq. II (MUDSU) New York, NY |
$250M $313M |
$10 25,000,000 |
Jefferies |
| Second blank check company formed by distressed debt investor Jason Mudrick to acquire a post-bankruptcy business. | |||
| C3.ai (AI) Redwood City, CA |
$574M $4,910M |
$36 - $38 15,500,000 |
Morgan Stanley JP Morgan |
| Provides a SaaS platform for deploying enterprise AI applications. | |||
| DoorDash (DASH) San Francisco, CA |
$3,053M $34,693M |
$90 - $95 33,000,000 |
Goldman JP Morgan |
| North America's largest online restaurant delivery service. | |||
| PubMatic (PUBM) Redwood City, CA |
$100M $953M |
$16 - $18 5,900,000 |
Jefferies RBC |
| Provides a cloud infrastructure platform that enables advertising transactions. | |||
| Airbnb (ABNB) San Francisco, CA |
$2,440M $31,771M |
$44 - $50 51,914,896 |
Morgan Stanley Goldman |
| Provides a platform for booking short-term stays from a global network of locals. | |||
| Hydrofarm Holdings (HYFM) Petaluma, CA |
$130M $520M |
$14 - $16 8,666,667 |
JP Morgan Stifel |
| Sells hydroponics and specialty indoor gardening supplies. | |||
| 4D Molecular Therapeutics (FDMT) Emeryville, CA |
$100M $491M |
$20 - $22 4,761,904 |
Goldman BofA |
| Developing targeted gene therapies for multiple diseases. | |||
| AbCellera (ABCL) Vancouver, Canada |
$357M $4,923M |
$14 - $17 23,000,000 |
Credit Suisse Stifel |
| Provides an AI powered drug discovery platform for antibody therapies. | |||
| Certara (CERT) Princeton, NJ |
$500M $3,131M |
$19 - $22 24,390,000 |
Jefferies Morgan Stanley |
| Provides biosimulation software and services used for drug development. | |||
| Nanobiotix (NBTX) Paris, France |
$95M $537M |
$14.69 6,500,000 |
Jefferies Evercore ISI |
| Late-stage French developer of nanoparticle drugs that improve cancer radiotherapy. |
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Lock-up periods will be expiring for nine companies. On Sunday, 12/6: Abcam (ABCM) and Vroom (VRM). On Monday, 12/7: uCloudlink (UCL). On Tuesday, 12/8: Lantern Pharma (LTRN). On Wednesday, 12/9: Avidity Biosciences (RNA), Burning Rock Biotech (BNR), Generation Bio (GBIO), AZEK (AZEK), and Vaxcyte (PCVX).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/3/20, the Renaissance IPO Index was up 108.3% year-to-date, while the S&P 500 was up 13.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Moderna (MRNA) and Uber (UBER). The Renaissance International IPO Index was up 40.7% year-to-date, while the ACWX was up 7.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
