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US IPO Weekly Recap: The IPO market has no time to RLX in a 6 IPO week

January 22, 2021
Weekly Recap

The 2021 IPO market continued gaining momentum this past week as six IPOs and 14 SPACs raised $6.2 billion. The IPO pipeline remained active as well, with 36 new filings from IPOs and SPACs combined.

China’s leading e-cigarette brand RLX Technology (RLX) priced above the range to raise $1.4 billion at an $18.6 billion market cap. RLX Technology produces e-vapor products under the brand RELX and sells these products in over 250 cities across China. With a 63% market share in closed-system e-vapor products in China, RLX has seen explosive revenue growth. RLX finished up 146%.

Brazilian private equity firm Patria Investments (PAX) priced above the range to raise $512 million at a $2.3 billion market cap. Patria Investments is a leading alternative asset manager in Brazil with $14.4 billion in AUM at the end of 2020. Although the firm is exposed to highly volatile FX, it has industry-leading margins and is benefiting from historically low interest rates. The company plans to pay out 85% of distributable earnings. Patria finished up 17%. 

Mytheresa Group (MYTE) upsized and priced at the high end to raise $407 million at a $2.2 billion market cap. This global e-commerce platform operates in the luxury fashion space, offering products from 200 brands, which include some of the biggest names in fashion. Despite operating in a highly competitive market, the company has seen stable growth with a double-digit sales CAGR since the FY16. Mytheresa finished up 30%. 

Dream Finders Homes (DFH) priced below the midpoint to raise $125 million at a $1.2 billion market cap. This Florida-based homebuilder designs, builds, and sells single-family, first-time and second-time move-up homes in high growth markets. Led by an experienced management team, the company has seen strong growth and expanded its EBITDA margin in the 9mo20. Dream Finders finished up 65%. 

Renewable energy firm Montauk Renewables (MNTK) priced above the range to raise $26 million at a $1.2 billion market cap. This energy company specializes in recovering and processing biogas from landfills and other non-fossil fuel sources for use in the transportation industry. Montauk Renewables finished up 38%.

Chinese steel manufacturer Huadi International (HUDI) priced at the high end to raise $25 million at a $106 million market cap. Huadi manufactures industrial stainless steel seamless pipes and tube products with extensive distribution facilities spread throughout twenty provinces in China. Huadi International finished down 11%.

14 blank check companies raised $3.7 billion this past week. The group was led by Liberty Media’s SPAC Liberty Media Acquisition (LMACU), which raised $500 million to acquire a business in the TMT and entertainment industries.

20 IPOs During the Week of January 18th, 2021
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 01/22
RLX Technology (RLX) $1,398M $18,640M 33% +146% +146%
Leading e-cigarette brand in China.
Dream Finders Homes (DFH) $125M $1,184M -4% +61% +65%
Florida-based homebuilder expanding nationally.
Montauk Renewables (MNTK) $26M $1,196M 13% +38% +38%
Produces and sells landfill-sourced renewable natural gas and electricity.
Mytheresa Group (MYTE) $407M $2,230M 53% +19% +30%
Global luxury fashion e-commerce platform.
Liberty Media Acquisition (LMACU) $500M $625M 0% +28% +28%
Blank check company formed by Liberty Media targeting the TMT and entertainment industries.
Patria Investments (PAX) $512M $2,272M 13% +17% +17%
Leading private equity firm based in Brazil.
Queen's Gambit Capital (GMBTU) $300M $375M 0% +7% +13%
Blank check company with an all-female team formed by VC Victoria Grace and Agility Logistics targeting a sustainable business.
Gores Metropoulos II (GMIIU) $400M $500M 0% +12% +12%
Second blank check company formed by Dean Metropoulos and The Gores Group.
European Sustainable Acq. (EUSGU) $125M $157M 0% +12% +12%
Blank check company formed by Lucerne Capital and the former head of the IFC targeting sustainable industries in Europe.
SCP & CO Healthcare Acq. (SHACU) $200M $250M 0% +5% +5%
Blank check company formed by SCP & CO targeting the healthcare industry.
Jack Creek Investment (JCICU) $300M $375M 0% +4% +4%
Blank check company formed by KSH Capital targeting businesses in the food and grocery supply chain.
Legato Merger (LEGOU) $205M $264M 0% +3% +4%
Blank check company formed by SPAC veterans Eric Rosenfeld and David Sgro targeting an industrial business.
FoxWayne Enterprises Acq. (FOXWU) $50M $63M 0% +4% +4%
Blank check company targeting biotechnology and telemedicine in North America.
North Atlantic Acq. (NAACU) $330M $413M 0% +4% +4%
Blank check company targeting the consumer, industrials, and telecom sectors in North America and Europe.
TZP Strategies Acq. (TZPSU) $250M $313M 0% +3% +4%
Blank check company formed by TZP Group targeting the tech, business, and consumer sectors.
Virtuoso Acquisition (VOSOU) $200M $250M 0% +3% +3%
Blank check company led by the co-founders of Connoisseur Media targeting a media business.
Oyster Enterprises Acq. (OSTRU) $200M $250M 0% +2% +2%
Blank check company led by executives from hedge fund Alden Global targeting media, tech, and other industries.
Primavera Capital Acq. (PV.U) $360M $474M 0% n/a +0%
Blank check company formed by Primavera Capital targeting a consumer business with a presence in China.
OEP Open Water I (OEPW.U) $300M $375M 0% n/a +0%
Blank check company formed by One Equity Partners.
Huadi International (HUDI) $25M $106M 0% -11% -11%
Manufactures steel pipe and tube products in China.

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11 IPOs and 25 SPACs submitted initial filings this past week. Signify Health (SGF), which provides a value-based billing platform for in-home and bundled health services, filed for an estimated $500 million IPO. Diagnostic test developer Talis Biomedical (TLIS) filed to raise $150 million. Phase 1 cancer biotech Adagene (ADAG) filed to raise $125 million. Communication service provider Cloopen Group (RAAS), orthobiologic products seller Bioventus (BVS), and oncology genomic testing provider Decipher Biosciences (DECI) each filed to raise $100 million. Hearing disorder biotech Decibel Therapeutics (DCBL) filed to raise $75 million. Cancer immunotherapy biotech NexImmune (NEXI) filed to raise $86 million. Cell therapy developer Longeveron (LGVN) and Chinese shopping mall operator Tony Fun (TONY) both filed to raise $30 million. Phase 2 COVID biotech Biophytis (BPTS) filed to raise $15 million.

25 SPACs filed to raise $6.4 billion. The group was led by computation and healthcare-focused SPAC Compute Health Acquisition (CPUH.U), which filed to raise $750 million, and The Gores Group’s seventh SPAC Gores Holdings VII (GSEVU), which filed to raise $400 million.

36 Filings During the Week of January 18th, 2021
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Decibel Therapeutics (DBTX) $75M Health Care Citi
Phase 1 biotech developing treatments for hearing and balance disorders.
GigCapital4 (GIGU) $260M SPAC Oppenheimer
Fourth blank check company led by semiconductor veteran Avi Katz.
Power & Digital Inf. Acq. (XPDIU) $250M SPAC Barclays
Blank check company targeting the US electrical power grid transition.
Talis Biomedical (TLIS) $150M Health Care JP Morgan
Developing diagnostic tests for COVID-19 and other infectious diseases.
Tony Fun (TONY) $30M Real Estate ---
Operates retail shopping malls in China.
Twin Ridge Capital Acq. (TRCA.U) $200M SPAC Barclays
Blank check company formed by Twin Ridge Capital targeting the consumer and distribution sectors.
Crown PropTech Acq. (CPTK.U) $200M SPAC RBC
Blank check company targeting real estate technology.
Goal Acquisitions (PUCKU) $225M SPAC EarlyBird
Blank check company targeting the sports and media sectors.
Isleworth Healthcare Acq. (IHAU.RC) $150M SPAC I-Bankers
Blank check company targeting healthcare innovation.
Isos Acquisition (ISOS.U) $200M SPAC JP Morgan
Blank check company targeting the digital media and entertainment sectors.
Leo Holdings III (LHCT.RC) $200M SPAC Deutsche Bank
Third blank check company formed by Lion Capital executives targeting consumer businesses.
Priveterra Acquisition (PMGMU) $200M SPAC Wells Fargo
Blank check company targeting the medical technology sector.
VPC Impact Acquisition II (VIHBU) $225M SPAC Citi
Third blank check company formed by Victory Park Capital to acquire a fintech business.
Altimar Acquisition II (ATMRU) $300M SPAC Goldman
Second blank check company formed by HPS Investment Partners.
Bioventus (BVS) $100M Health Care Morgan Stanley
Offers orthobiologics products for musculoskeletal conditions.
Compute Health Acq. (CPUH.U) $750M SPAC Goldman
Blank check company targeting the intersection of computation and healthcare.
Crescent Cove Acquisition (COVAU) $200M SPAC Cantor Fitz.
Blank check company formed by Crescent Cove Advisors targeting tech businesses in Southeast Asia.
Evo Acquisition (EVOJU) $100M SPAC B. Riley FBR
Blank check company formed by Evolution Capital Management targeting the tech and financial sectors.
Fifth Wall Acquisition I (FWAA) $250M SPAC Goldman
Blank check company targeting a real estate technology business.
FTAC Athena Acq. (FTACU.RC) $220M SPAC Cantor Fitz.
Blank check company led by SPAC veteran Betsy Cohen and Cohen & Co's Amanda Abrams targeting fintech.
Fusion Acquisition II (FSNB.U) $300M SPAC Cantor Fitz.
Second blank check company formed by industry veterans targeting financial services.
G Squared Ascend I (GSQD.U) $250M SPAC UBS
Blank check company formed by G Squared targeting the tech sector.
Gores Holdings VII (GSEVU) $400M SPAC Deutsche Bank
Seventh blank check company formed by The Gores Group.
HH&L Acquisition (HHLA.U) $300M SPAC Goldman (Asia)
Blank check company targeting the healthcare sector in Asia.
Kensington Capital II (KCAC.U) $200M SPAC UBS
Second blank check company targeting the automotive industry.
ScION Tech Growth II (SCOBU) $300M SPAC Citi
Second UK blank check company formed by ION Investment Group targeting technology.
Adagene (ADAG) $125M Health Care Goldman (Asia)
Phase 1 biotech developing antibody cancer immunotherapies in China.
Biophytis (BPTS) $15M Health Care HC Wainwright
French Phase 2 biotech developing therapies for COVID-related complications and age-related diseases.
Cloopen Group (RAAS) $100M Technology Goldman
Provides cloud-based communication services in China.
Decipher Biosciences (DECI) $100M Health Care Evercore ISI
Provides genomic testing products for urologic oncology.
Itiquira Acquisition (ITQRU) $200M SPAC Citi
Blank check company targeting growth sectors in Brazil.
JOFF Fintech Acq. (JOFFU) $300M SPAC RBC
Blank check company targeting the financial services industry and FinTech.
Longeveron (LGVN) $30M Health Care Kingswood Cap. Mkts.
Phase 2 biotech developing cellular therapies for aging-related conditions.
NexImmune (NEXI) $86M Health Care Barclays
Phase 1/2 biotech developing T cell immunotherapies for cancer.
Quantum FinTech Acq. (QFTA.U) $150M SPAC Chardan
Blank check company targeting businesses providing tech services to the financial sector.
Signify Health (SGFY) $500M Health Care Goldman
Provides a value-based billing platform for in-home and bundled health services.

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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/21/2021, the Renaissance IPO Index was up 8.4% year-to-date, while the S&P 500 was up 2.6%. 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 5.3% year-to-date, while the ACWX was up 5.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Feihe.