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.
