US IPO Weekly Recap: Playtika and Affirm’s billion-dollar deals headline an 8 IPO week

In another busy week for the IPO market, eight IPOs and 24 SPACs went public, headlined by two billion-dollar deals. Activity shows no sign of letting up as 18 IPOs and 23 SPACs submitted initial filings.

Casino game developer Playtika Holding (PLTK) priced above the range to raise $1.9 billion at an $11.4 billion market cap. The company is a leading developer of social casino and other casual mobile games, and its portfolio contains nine of the top 100 grossing mobile games in the US. The company has demonstrated growth and strong margins, though relies on a small percentage of players for revenue. Playtika finished up 17%.

Affirm Holdings (AFRM), which offers “buy now pay later” loans for online purchases, priced above the upwardly revised range to raise $1.2 billion at a $14.8 billion market cap. Unprofitable and fast growing, the company is a leading player in the space, facilitating over $10.7 billion in GMV from 6.2 million customers over the last four years. Affirm finished up 139%.

Multi-channel pet care retailer Petco Health and Wellness (WOOF) priced above the range to raise $864 million at a $4.6 billion. The company has focused on growing its mix of owned brands and increased its e-commerce penetration. While its growth track record has been inconsistent, the company has seen a dramatic pick up in growth due to increased pet ownership during COVID-19. Petco finished up 54%.

Auto service group Driven Brands Holdings (DRVN) priced above the range to raise $700 million at a $3.6 billion market cap. A leading franchiser in North America, Driven Brands has over 4,100 locations across various services. Its franchised model supports strong margins and cash flow, though it is highly leveraged post-IPO. Driven Brands finished up 21%.

Fashion e-commerce platform Poshmark (POSH) raised $277 million at a $3.5 billion market cap and popped 142%, the best first-day performance of the week. With growing demand for secondhand apparel, gross merchandise value has grown 25%+ in six of the last seven quarters, though it operates in a highly competitive market and could face pressure on its take rate. Poshmark finished up 98%.

Motorspork Network spin-off Motorsport Games (MSGM) priced at the high end of the upwardly revised range to raise $60 million at a $340 million market cap. The company develops and publishes multi-platform racing video games and is currently the official developer and publisher of the NASCAR video game franchise. Motorsport Games finished up 50%.

Chinese classical music platform Kuke Music Holding (KUKE) priced at the low end to raise $50 million at a $308 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 growth has been lumpy, and revenue declined in both the FY 19 and 9mo20. Kuke finished up 1%.

Chinese chemicals maker Qilian International (QLI) priced at the low end to raise $25 million at a $175 million market cap. The company focuses on the development, manufacture, marketing, and sale of various products, including heparin and traditional Chinese medicine derivatives. The company is profitable but saw revenue decline in the FY19. Qilian finished up 75%.

In another busy week for blank check IPOs, 24 SPACs raised $6.8 billion, led by Thoma Bravo’s software-focused Thoma Bravo Advantage (TBA), which raised $900 million, and industrial tech SPAC Pontem Corp. (PNTM.U), which raised $600 million.

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18 IPOs submitted initial filings. Online mortgage lender loanDepot (LDI) and dating app unicorn Bumble (BMBL) filed for $1.5 billion and $900 million estimated IPOs, respectively. Home healthcare equipment provider Apria (APR) filed for an estimated $800 million IPO. Preclinical cell therapy biotech Sana Biotechnology (SANA), advertising software maker Viant Technology (DSP), and cell therapy biotech Vor Biopharma (VOR) all filed to raise $150 million. Chinese e-commerce services provider WeTrade Group (WETG) filed for a $121 million Nasdaq uplisting and COVID-19 test kit maker Lucira Health (LHDX) filed to raise $115 million. Chinese education provider First High-School Education Group (FHS), autoimmune biotech Landos Biopharma (LABP), solid tumor biotech Bolt Biotherapeutics (BOLT), cancer biotech Immunocore Holdings (IMCR), COVID-19 test maker LumiraDx (LMDX), rare disease biotech Pharvaris (PHVS), cleaning product maker PurposeBuilt Brands (PBLT), cancer biotech Sensei Biotherapeutics (SNSE), and NASH biotech Terns Pharmaceuticals (TERN) all filed to raise $100 million. Phase 3 biotech Angion Biomedica (ANGN) filed to raise $75 million.

23 SPACs submitted initial filings, led by Michael Klein’s sixth and seventh SPACs Churchill Capital Corp. VI (CCVI.U) and Churchill Capital Corp. VII (CVIIU.RC), which filed to raise $400 million and $300 million, respectively.


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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/14/2021, the Renaissance IPO Index was up 7.9% year-to-date, while the S&P 500 was up 1.1%. 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 1.6% year-to-date, while the ACWX was up 4.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.