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US IPO Week Ahead: Games, loans, pet care, and more in a diverse 8 IPO week

January 8, 2021
Week Ahead

Eight IPOs are scheduled to raise $4.3 billion in the week ahead, featuring the year’s first billion-dollar offering from mobile game developer Playtika (PLTK).

Playtika Holding (PLTK) plans to raise $1.6 billion at a $9.7 billion market cap. The company is a leading developer of mostly casino-based mobile games, producing nine of the top 100 highest grossing games in the US. The company primarily grows its game portfolio through acquisitions. Playtika is profitable with strong cash flow generation, though its two top titles accounted for half of FY19 revenue.

Affirm Holdings (AFRM) plans to raise $873 million at a $10.6 billion market cap. Fast growing and unprofitable, the company offers “buy now pay later” loans for online purchases. As of September 30, 2020, more than 6.2 million consumers have completed approximately 17.3 million transactions with over 6,500 merchants on Affirm's platform.

Pet care retailer Petco Health and Wellness (WOOF) plans to raise $744 million at a $4.0 billion market cap. The company previously filed for an IPO in 2015, but withdrew the deal following its acquisition by CVC Capital Partners and Canada Pension Plan Investment Board for about $4.6 billion. After flat or negative comparable store sales growth in recent years, comp growth rose in both the latest FY and YTD periods, driven by its online segment.

Driven Brands Holdings (DRVN), North America’s largest auto services company, plans to raise $703 million at a $3.1 billion market cap. The company’s portfolio includes highly-recognized brands Maaco and Meineke, and it has more than 4,100 locations across 49 states in the US and 14 countries. While profitable with strong growth, Driven Brands will be highly leveraged post-IPO at 7.9x net debt/LTM EBITDA.

Fashion e-commerce platform Poshmark (POSH) plans to raise $244 million at a $3.1 billion market cap. With growing demand for secondhand apparel, gross merchandise value has grown 25% or more in six of the last seven quarters, and the company achieved profitability in 2020. However, the company operates in a highly competitive market and could face pressure on its take rate.
Kuke Music Holding (KUKE) plans to raise $55 million at a $339 million market cap. Kuke was China’s largest classical music licensing service provider and the second largest online classical music subscription service provider in 2019. The company’s quarterly sales growth has been lumpy, and revenue declined in both the FY 19 and 9mo20. Insiders have indicated on $26 million worth of ADSs in the offering.

Racing game developer Motorsport Games (MSGM) plans to raise $40 million at a $278 million market cap. Being spun out of Motorsport Network, the company develops and publishes multi-platform racing video games and is currently the official developer and publisher of the NASCAR video game racing franchise. While revenue declined in 2019, growth accelerated in the 9mo20.

Chinese chemicals maker Qilian International Holding (QLI) plans to raise $30 million at a $210 million market cap. The company focuses on the development, manufacture, marketing, and sale of licorice products, oxytetracycline products, traditional Chinese medicine derivatives, heparin, sausage casings, and fertilizers. The company is profitable but saw revenue decline in the FY19.

U.S. IPO Calendar
Deal Size
Market Cap
Price Range
Shares Filed
Big Cypress Acquisition (BCYPU)
Miami Beach, FL
Blank check company targeting life science businesses in the US and Israel.
Kuke Music (KUKE)
Beijing, China
$10 - $12
Deutsche Bank
Tiger Brokers
Provides classical music licensing, subscription, and education services in China.
Qilian International (QLI)
Jiuquan, China
$5 - $7
Univest Sec.
Loop Capital
Chinese producer of traditional medicines, chemicals, and fertilizers.
Affirm (AFRM)
San Francisco, CA
$33 - $38
Morgan Stanley
Offers "buy now pay later" loans for online purchases.
Motorsport Games (MSGM)
Miami, FL
$16 - $18
Leading developer of racing games being spun out of Motorsport Network.
Petco (WOOF)
San Diego, CA
$14 - $17
Multi-channel pet care retailer with about 1,500 locations across North America.
Poshmark (POSH)
Redwood City, CA
$35 - $39
Morgan Stanley
Peer-to-peer fashion e-commerce site.
Driven Brands (DRVN)
Charlotte, NC
$17 - $20
Morgan Stanley
North America's largest automotive services company with more than 4,100 locations.
Playtika (PLTK)
Herzliya, Israel
$22 - $24
Morgan Stanley
Credit Suisse
Leading developer of casino and other mobile games.
Leo Holdings II (LHC.U)
London, United Kingdom
Deutsche Bank
Credit Suisse
Second blank check company formed by Lion Capital executives targeting consumer businesses.

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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/7/2021, the Renaissance IPO Index was up 3.2% year-to-date, while the S&P 500 was up 1.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Peloton Interactive (PTON). The Renaissance International IPO Index was up 0.4% year-to-date, while the ACWX was up 3.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.