Following a rough week for the IPO market, two IPOs are slated to raise $1.9 billion in the week ahead, joined by one direct listing.
Swedish oat milk brand Oatly (OTLY) plans to raise $1.4 billion at a $9.5 billion market cap. Oatly’s portfolio of plant-based dairy alternatives include milk, ice cream, yogurt, cooking creams, spreads, and on-the-go drinks. The company is the highest-selling brand in the oat category in its home market of Sweden, as well as the US, the UK, and Germany. Oatly has seen explosive revenue growth, though remains unprofitable due to high SG&A spend.
Website creation platform Squarespace (SQSP) plans to complete a direct listing on the NYSE, with an estimated market value at listing of more than $10 billion. With demonstrated growth and strong free cash flow, Squarespace provides an all-in-one web design platform and a suite of marketing tools. As of December 31, 2020, the company had 3.7 million unique subscriptions, and notes that there are an estimated 800 million small businesses globally that are potential customers.
Construction software provider Procore Technologies (PCOR) plans to raise $592 million at an $8.9 billion market cap. Procore provides cloud-based software for construction management, and its customers have used its platform to create an aggregate of over 1 million projects representing $1+ trillion of construction volume since January 1, 2014. While it has maintained a sticky customer base, the company is historically unprofitable with a large deficit.
|U.S. IPO Calendar|
|$15 - $17
|Swedish vegan food company known for its oat milk.|
|Procore Technologies (PCOR)
|$60 - $65
|Provides cloud-based construction management and collaboration software.|
New York, NY
|Provides an easy-to-use platform for businesses and individuals to create websites.|
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/13/21, the Renaissance IPO Index was down 16.0% year-to-date, while the S&P 500 was up 9.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was down 7.1% year-to-date, while the ACWX was up 5.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and Kuaishou Technology.