Six IPOs raised $1.8 billion ahead of the short holiday week, joined by one direct listing and five SPACs. Returns bounced back after tumultuous trading earlier this month, with the week’s deals all finishing above issue. New filers began to flood the summer IPO pipeline, with 19 IPOs and eight SPACs submitting initial filings.
Healthcare apparel brand FIGS (FIGS) upsized and priced above the range to raise $580 million at a $4.3 billion market cap. FIGS provides performance and lifestyle apparel specifically catered to healthcare professionals. While the company is fast growing and profitable, its operating margins may contract in the near term due to increased S&M spend. FIGS finished up 55%.
Pediatric cancer biotech Day One Biopharmaceuticals (DAWN) priced at the high end to raise $160 million at a $965 million market cap. The company's lead candidate is currently in a pivotal Phase 2 trial for the treatment of pediatric patients with relapsed or progressive low-grade glioma. The company anticipates an initial data readout in the 1H22, and expects to file an NDA in 2023. Day One finished up 48%.
Electronic billing platform Paymentus (PAY) priced at the high end to raise $210 million at a $2.6 billion market cap. Paymentus provides cloud-based bill payment technology for more than 1,300 business clients. The company has demonstrated growth and profitability, though increased investments in opex will hurt margins and profitability in the near term. Paymentus finished up 45%.
Payment processor Flywire (FLYW) upsized and priced at the high end to raise $251 million at a $2.8 billion market cap. Flywire provides a global payments platform for the education, healthcare, and travel verticals. While organic growth slowed in 2020 due to the pandemic, the company operates in large underserved markets and has a sticky customer base. Flywire finished up 43%.
Genetic sequencer Singular Genomics Systems (OMIC) upsized and priced at the high end to raise $224 million at a $1.7 billion market cap. Singular has developed a unique and proprietary next generation sequencing technology and is currently developing two integrated solutions that are purpose built to target specific applications. Commercial launches are expected in 2021 and 2023. Singular finished up 23%.
Biotech holding company Centessa Pharmaceuticals (CNTA) upsized and priced at the high end to raise $330 million at a $1.9 billion market cap. Recently-formed Centessa was founded on the observation that "asset-centric" drug development companies experience a higher probability of clinical success. The company has a broad pipeline of 16 programs targeting various indications, though 12 of its programs are preclinical. Centessa finished up 9%.
Job marketplace ZipRecruiter (ZIP) direct-listed on the NYSE and opened trading at $20 (+11% vs. reference price) for an implied market value of $2.6 billion. The company has large reach, with employers posting over 90 million jobs to its website and app that reached 36 million job seekers in 2020. However, it faces significant competition from large companies like LinkedIn and Facebook. ZipRecruiter finished up 5% from its opening trade.
Five SPACs raised $1.1 billion, led by Post Holdings’ CPG-focused Post Holdings Partnering Corp (PSPC.U), which raised $300 million.
| 12 IPOs During the Week of May 24th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/28 |
| FIGS (FIGS) | $580M | $4,345M | 26% | +36% | +55% |
| Premium medical scrubs and healthcare apparel brand. | |||||
| Day One Biopharma (DAWN) | $160M | $965M | 7% | +62% | +48% |
| Phase 2 biotech developing kinase inhibitors for pediatric brain tumors. | |||||
| Paymentus (PAY) | $210M | $2,562M | 5% | +36% | +45% |
| Electronic billing platform provider. | |||||
| Flywire (FLYW) | $251M | $2,802M | 4% | +46% | +43% |
| Provides payment processing software to education, healthcare, travel, and B2B firms. | |||||
| Singular Genomics (OMIC) | $224M | $1,692M | 5% | +17% | +23% |
| Developing genetic sequencing and multiomics systems for biomedical research. | |||||
| ZipRecruiter (ZIP) | $0M | $2,327M | 0% | +17% | +17% |
| Operates an online job marketplace. | |||||
| Centessa Pharmaceuticals (CNTA) | $330M | $1,886M | 5% | +9% | +9% |
| Biotech holding company carved out of Medicxi. | |||||
| Post Holdings Partnering (PSPC.U) | $300M | $385M | 0% | +0% | +1% |
| Blank check company formed by Post Holdings targeting the consumer packaged goods industry. | |||||
| Dynamics Special Purpose (DYNS) | $200M | $257M | 0% | +0% | +0% |
| Blank check company led by biotech entrepreneurs targeting the life sciences industry. | |||||
| OceanTech Acquisitions I (OTECU) | $100M | $126M | 0% | +0% | +0% |
| Blank check company targeting the leisure marine, yachting, and superyachting industries. | |||||
| EG Acquisition (EGGFU) | $225M | $281M | 0% | -1% | +0% |
| Blank check company formed by EnTrust Global and GMF Capital. | |||||
| Fifth Wall Acq. III (FWAC) | $250M | $321M | 0% | +0% | -1% |
| Third blank check company formed by Fifth Wall targeting real estate technology. | |||||
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19 IPOs submitted initial filings. Chinese freight platform Full Truck Alliance (YMM) filed for an estimated $1.5 billion IPO, and preclinical solid tumor biotech Lyell Immunopharma (LYEL) filed to raise $150 million. Israeli AdTech platform Tremor International (TRMR), digital physician network Doximity (DOCS), oncology biotechs Ambrx Biopharma (AMAM) and Cyteir Therapeutics (CYT), stem cell biotech Century Therapeutics (IPSC), gene editing biotech Verve Therapeutics (VERV), Chinese issuer AiHuiShou International (RERE), synthetic biology company Codex DNA (DNAY), Turkish e-commerce platform D-MARKET (HBX), SaaS company EverCommerce (EVCM), human capital management firm First Advantage (FA), and CRM software provider Sprinklr (CXM) all filed to raise $100 million. Pet food company Better Choice Company (BTRC.RC) and immunotherapy biotech HCW Biologics (HCWB) both filed to raise $50 million. Organ bioengineering company Miromatrix Medical (MIRO) filed to raise $20 million, and micro-cap antibiotic biotech Acurx Pharmaceuticals (ACXP) and female cancer biotech Context Therapeutics (CNTX) both filed to raise $15 million.
Eight SPACs submitted initial filings, led by CleanTech Acquisition (CTAQU), which filed to raise $250 million to target the CleanTech and ClimateTech sectors.
| 27 Filings During the Week of May 24th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| AiHuiShou International (RERE) | $100M | Technology | Goldman |
| Chinese pre-owned consumer electronics transactions and services platform. | |||
| Ambrx Biopharma (AMAM) | $100M | Health Care | Goldman |
| Phase 2/3 oncology biotech developing engineered antibody-drug conjugates. | |||
| CCM Acquisition (CCMCU) | $150M | SPAC | I-Bankers |
| Blank check company targeting new economy sectors in Asia Pacific and Europe. | |||
| Century Therapeutics (IPSC) | $100M | Health Care | JP Morgan |
| Preclinical biotech developing allogenic stem cell treatments for multiple cancers. | |||
| CleanTech Acquisition (CTAQU) | $250M | SPAC | Chardan |
| Blank check company targeting the CleanTech and ClimateTech sectors. | |||
| Codex DNA (DNAY) | $100M | Technology | Jefferies |
| Makes an automated synthetic biology workstation and related solutions. | |||
| Cyteir Therapeutics (CYT) | $100M | Health Care | JP Morgan |
| Early stage oncology biotech developing small molecule therapies that inhibit DNA damage repair. | |||
| D-MARKET (HBX) | $100M | Technology | Morgan Stanley |
| Operates the e-commerce platform Hepsiburada in Turkey. | |||
| Doximity (DOCS) | $100M | Technology | Morgan Stanley |
| Professional network for physicians with telehealth and scheduling tools. | |||
| EverCommerce (EVCM) | $100M | Technology | Goldman |
| Provides SaaS solutions to SMBs for business and customer management. | |||
| First Advantage (FA) | $100M | Technology | Barclays |
| Provides technology solutions for human capital management. | |||
| Miromatrix Medical (MIRO) | $20M | Health Care | Craig-Hallum |
| Developing novel bioengineering technology for organ transplants. | |||
| Sprinklr (CXM) | $100M | Technology | Morgan Stanley |
| Provides customer experience management software for enterprises. | |||
| Verve Therapeutics (VERV) | $100M | Health Care | JP Morgan |
| Preclinical biotech developing single-course gene editing therapies for cardiovascular disease. | |||
| Acurx Pharmaceuticals (ACXP) | $15M | Health Care | Alexander Capital |
| Phase 2 biotech developing antibiotics for antibiotic-resistant pathogens. | |||
| Context Therapeutics (CNTX) | $15M | Health Care | ThinkEquity |
| Phase 2 biotech developing therapeutics for female cancers. | |||
| Full Truck Alliance (YMM) | $1,500M | Technology | Morgan Stanley |
| Digital freight platform that connects shippers and truckers in China. | |||
| Digital World Acquisition (DWACU) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company led by SPAC veteran Patrick Orlando targeting a tech-focused business. | |||
| Fortune Rise Acq. (FRLAU) | $85M | SPAC | Tiger Brokers |
| Blank check company formed by the CEO of US Tiger Securities. | |||
| HCW Biologics (HCWB) | $50M | Health Care | Kingswood Cap. Mkts. |
| Phase 2 biotech developing novel immunotherapies for cancer. | |||
| Sagaliam Acquisition (SAGAU) | $100M | SPAC | Maxim |
| Blank check company formed by GLD Partners targeting the TMT sector. | |||
| Sparta Healthcare Acq. (SPTAU) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting biotechs with mid-to-late stage therapeutic candidates. | |||
| TradeUP 88 (TUFUU) | $88M | SPAC | Tiger Brokers |
| Third blank check company led by the founder of Zhencheng Capital. | |||
| 8i Acquisition 2 (LAXU) | $50M | SPAC | Maxim |
| Second Asia-focused blank check company backed by 8i Capital. | |||
| Lyell Immunopharma (LYEL) | $150M | Health Care | Goldman |
| Preclinical biotech developing T cell therapies for solid tumors. | |||
| Tremor International (TRMR) | $100M | Technology | RBC |
| Provides a platform that automates digital ad transactions for advertisers and publishers. | |||
| Better Choice (BTRC.RC) | $50M | Consumer Staples | DA Davidson |
| Makes premium pet food under the Halo and TruDog brands. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/27/21, the Renaissance IPO Index was down 4.3% year-to-date, while the S&P 500 was up 11.8%. 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 1.0% year-to-date, while the ACWX was up 9.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and EQT Partners.
