Following some turmoil in the IPO market, three IPOs and one
direct listing entered the public markets this past week. SPAC activity picked
up considerably, with seven blank check IPOs raising $1.3 billion. The pipeline
saw plenty of new filers, with 13 IPOs and four SPACs submitting initial
filings.
The largest deal of the week, Swedish oat milk brand Oatly Group (OTLY) priced at the high
end to raise $1.4 billion at a $10.1 billion market cap. The company has grown
rapidly in recent years, benefiting from a shift to more socially-conscious
consumer habits, and is the #1 oat milk brand across major markets. Still, the
company has yet to turn a profit due to high SG&A spend. Oatly finished up
32%.
Construction management software provider Procore Technologies (PCOR) priced
above the range to raise $634 million at a $9.6 billion market cap. Procore’s
solutions allow owners and contractors to collaborate and communicate from
anywhere. The company has posted strong growth and was profitable on an EBITDA basis
in 2020, though opex investments may weigh on margins in the near term. Procore
finished up 32%.
Website creation platform Squarespace (SQSP) direct-listed on the NYSE and opened trading
at $48, below the $50 reference price, for an implied market value of $7.1
billion. The company’s platform offers websites, domains, e-commerce, social
media management, and marketing tools. The company has demonstrated strong
growth at scale and has a record of profitability, though its SMB customers are
subject to high churn. Squarespace finished up 3% from its opening trade.
Chinese electric vehicle retailer Jiuzi Holdings (JZXN) priced at the midpoint to raise $26 million
at a $101 million market cap. Juizi has 31 franchises and one company-owned
store in China, sourcing inventory through more than 20 EV and battery/component
manufacturers. The company is profitable, but growth decelerated in 2020. After
popping more than 200% on its first day, Jiuzi finished up 68%.
Seven blank check companies went public this past week, led by General Catalyst’s Catalyst Partners (CPARU), which raised $300 million, and Chinese technology-focused Angel Pond Holdings (POND.U), which raised $250 million.
| 11 IPOs During the Week of May 17th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 05/21 |
| Jiuzi Holdings (JZXN) | $26M | $101M | 0% | +272% | +68% |
| Electric vehicle retailer in China. | |||||
| Procore Technologies (PCOR) | $634M | $9,594M | 7% | +31% | +32% |
| Provides cloud-based construction management and collaboration software. | |||||
| Oatly (OTLY) | $1,434M | $10,066M | 6% | +19% | +32% |
| Swedish vegan food company known for its oat milk. | |||||
| Skydeck Acquisition (SKYAU) | $200M | $263M | 0% | -1% | +0% |
| Blank check company targeting the media, technology, communications, and digital health sectors. | |||||
| Angel Pond Holdings (POND.U) | $250M | $325M | 0% | n/a | +0% |
| Blank check company focusing on technology-enabled sectors in Greater China. | |||||
| Mountain Crest Acq. III (MCAEU) | $50M | $65M | 0% | +0% | +0% |
| Third blank check company formed by Suying Liu targeting North American businesses. | |||||
| GigInternational1 (GIWWU) | $200M | $258M | 0% | -1% | +0% |
| Seventh blank check company formed by semiconductor veteran Avi Katz. | |||||
| Catalyst Partners Acq. (CPARU) | $300M | $390M | 0% | -1% | -1% |
| Blank check company formed by General Catalyst targeting disruptive enterprise software. | |||||
| Graf Acquisition IV (GFOR.U) | $150M | $188M | 0% | -1% | -1% |
| Blank check company led by SPAC veteran James Graf targeting industrial and other sectors. | |||||
| Aries I Acquisition (RAMMU) | $125M | $156M | 0% | +0% | -1% |
| Blank check company targeting specialized fields in the tech sector across North America, Europe, and Asia. | |||||
| Squarespace (SQSP) | $0M | $7,451M | -27% | -13% | -1% |
| Provides an easy-to-use platform for businesses and individuals to create websites. | |||||
13 IPOs submitted initial filings this past week. Health management company Bright Health Group (BHG) filed for an estimated $1.2 billion IPO, and Israeli project management platform monday.com (MNDY) and water infrastructure solutions distributor Core & Main (CNM) each filed for an estimated $500 million IPO. Mortgage REIT Angel Oak Mortgage (AOMR) filed to raise $150 million. Digital finance spin-off AMTD Digital (HKD), preclinical T-cell therapy developer Janux Therapeutics (JANX), Chinese online tutoring platform Zhangmen Education (ZME), online luxury good and antique marketplace 1stdibs.com (DIBS), mental health services provider LifeStance Health Group (LFST), AI-enabled business insight platform WalkMe (WKME), Chinese online recruitment platform provider Kanzhun (BZ), and healthcare technology platform Convey Holding Parent (CNVY) all filed to raise $100 million. Early-stage kidney disease biotech Unicycive Therapeutics (UNCY) filed to raise $36 million.
Four SPACs submitted initial filings led by tech-focused Macondray Capital Acquisition I (DRAYU) and Integrated Rail and Resources Acquisition (IRRXU), which both filed to raise $250 million.
| 17 Filings During the Week of May 17th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Convey Holding Parent (CNVY) | $100M | Technology | BofA |
| Provides Medicare-focused software and service solutions. | |||
| Core & Main (CNM) | $500M | Industrials | Goldman |
| Leading distributor of pipes and other industrial water infrastructure products. | |||
| Integrated R&R Acq. (IRRXU) | $275M | SPAC | Stifel |
| Blank check company formed by Rio Grande Pacific Corporation and DHIP Group. | |||
| Kanzhun (BZ) | $100M | Technology | Goldman |
| Leading online recruitment platform in China. | |||
| Unicycive Therapeutics (UNCY) | $36M | Health Care | Roth Cap. |
| Early-stage biotech developing in-licensed therapies for kidney disease. | |||
| AMTD Digital (HKD) | $100M | Technology | AMTD Global |
| Digital financial services provider being spun out of AMTD. | |||
| InFinT Acquisition (IFIN.U) | $175M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting financial technology businesses. | |||
| Angel Oak Mortgage (AOMR) | $150M | Financials | Wells Fargo |
| Mortgage REIT focused on non-qualified loans. | |||
| Bright Health Group (BHG) | $1,200M | Financials | JP Morgan |
| Provides health insurance and other healthcare services. | |||
| Janux Therapeutics (JANX) | $100M | Health Care | BofA |
| Preclinical biotech developing a novel class of T cell engagers for cancer. | |||
| TenX Keane Acquisition (TENKU) | $50M | SPAC | Maxim |
| Blank check company targeting businesses in Asia. | |||
| Zhangmen Education (ZME) | $100M | Technology | Morgan Stanley |
| Chinese online after-school tutoring platform. | |||
| 1stDibs (DIBS) | $100M | Technology | BofA |
| Online marketplace for art, jewelry, antiques, and other luxury goods. | |||
| LifeStance Health (LFST) | $100M | Health Care | Morgan Stanley |
| Provides outpatient mental health services. | |||
| Macondray Capital Acq. I (DRAYU) | $275M | SPAC | B. Riley |
| Blank check company targeting the software, data and technology, and TMT sectors. | |||
| monday.com (MNDY) | $500M | Technology | Goldman |
| Provides a project management platform for businesses and schools. | |||
| WalkMe (WKME) | $100M | Technology | Morgan Stanley |
| AI-powered enterprise customer engagement and business insight platform. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/20/21, the Renaissance IPO Index was down 9.3% year-to-date, while the S&P 500 was up 10.7%. 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 2.3% year-to-date, while the ACWX was up 8.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and Kuaishou Technology.
