After a record breaking number of deals last week, the IPO market cooled off for the shortened holiday week, with just two micro-cap IPOs raising $45 million.
Preclinical RNA biotech Transcode Therapeutics (RNAZ) priced at $4 to raise $25 million at a $54 million market cap. This oncology biotech develops RNA therapeutics for the treatment of solid tumors. The company’s candidates are all in preclinical development, with an IND submission expected in the 1Q22 for its lead candidate. Transcode Therapeutics finished up 32%.
Chinese financial services firm Sentage Holdings (SNTG) priced at the low end of the range to raise $20 million at a $70 million market cap. The company offers comprehensive consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. Sentage Holdings maintains an in-house team that works to recover delinquent loans within three months of non-payment. Sentage Holdings finished up 598%.
Chinese oncology data platform LinkDoc Technology (LDOC) postponed its $200 million IPO amid China’s latest initiative to regulate domestic internet companies seeking to list in the US.
Four SPACs raised $1.0 billion this past week, led by Michael Klein and Sam Altman’s AtlC Acquisition (ALCC), which raised $450 million.
| 6 IPOs During the Week of July 5th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 07/09 |
| Sentage Holdings (SNTG) | $20M | $70M | -9% | +598% | +598% |
| Provides consumer loan collection, recommendation, and payment services in China. | |||||
| TransCode Therapeutics (RNAZ) | $25M | $54M | -56% | +32% | +32% |
| Preclinical biotech developing RNA-based targeted therapies for cancer. | |||||
| AltC Acquisition (ALCC) | $450M | $513M | 0% | +0% | +1% |
| Blank check company formed by Michael Klein and OpenAI co-founder Sam Altman. | |||||
| Agrico Acquisition (RICOU) | $125M | $158M | 0% | +0% | +0% |
| Blank check company targeting agricultural technology in the Americas. | |||||
| Acropolis Inf. Acq. (ACRO.U) | $300M | $375M | 0% | n/a | +0% |
| Blank check company formed by Apollo targeting infrastructure and infrastructure services in North America. | |||||
| Galata Acquisition (GLTA.U) | $125M | $156M | 0% | +0% | +0% |
| Blank check company formed by Callaway Capital and Weiss targeting financials and fintech in emerging markets. | |||||
13 IPOs submitted initial filings, led by lifestyle brand licensor Authentic Brands Group (AUTH), which we estimate could raise up to $1.5 billion. Programmatic advertising platform Teads (TEAD) filed for an estimated $700 million IPO. Respiratory vaccine developer Icosavax (ICVX), oncological kinase inhibitor biotech Nuvalent (NUVL), home medical equipment and services provider Rotech Healthcare Holding (ROTK), vitamins and supplements provider The Better Being Co. (BBCO), and wood pellet grill company Traeger (COOK), nerve stimulation company Nalu Medical (NALU), preclinical gene therapy biotech Omega Therapeutics (OMGA), adjustable intraocular lens provider RxSight (RXST), and preclinical heart disease biotech Tenaya Therapeutics (TNYA) all filed to raise $100 million. Online and in-person entrepreneur education platform Genius Group (GNUS.RC) filed to raise $49 million and spinoff of Biofrontera AG’s dermatology drug portfolio Biofrontera (BFRI) filed to raise $19 million.
13 SPACs submitted initial filings, led by Centerview Capital’s third SPAC Conyers Park III Acquisition (CPAAU), which filed to raise $350 million, and technology-focused Apex Technology Acquisition II (APXBU), which filed to raise $300 million.
| 28 Filings During the Week of July 5th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Activate Permanent Cap. (APCC.U) | $250M | SPAC | BofA |
| Blank check company targeting sustainability. | |||
| AfterNext HealthTech Acq. (AFTR.U) | $300M | SPAC | Goldman |
| Blank check company backed by TPG targeting healthcare technology. | |||
| MaxCyte (MXCT) | $100M | Health Care | Cowen |
| Provides cell engineering devices and services. | |||
| Nalu Medical (NALU) | $100M | Health Care | JP Morgan |
| Commercializing a nerve stimulation implant for chronic neuropathic pain. | |||
| Omega Therapeutics (OMGA) | $100M | Health Care | Goldman |
| Preclinical biotech developing gene therapies for oncology and other diseases. | |||
| Rani Therapeutics (RANI) | $100M | Health Care | BofA |
| Develops ingestible capsules for oral dosing of medication. | |||
| Roth CH Acquisition IV (ROCGU) | $100M | SPAC | Roth Cap. |
| Fourth blank check company formed by executives of Roth Capital and Craig-Hallum. | |||
| RxSight (RXST) | $100M | Health Care | JP Morgan |
| Commercial-stage provider of post-cataract intraocular lens platform. | |||
| Tenaya Therapeutics (TNYA) | $100M | Health Care | Morgan Stanley |
| Preclinical biotech developing multiple therapies to treat heart disease. | |||
| AxonPrime Infr. Acq. (AMPIU) | $150M | SPAC | Morgan Stanley |
| Blank check company formed by Axon Capital and Prime Movers Lab targeting the infrastructure industry. | |||
| Millstreet Capital Acquis (MLSTU) | $125M | SPAC | Seaport Global |
| Blank check company targeting distressed or reorganizing businesses. | |||
| Parsec Capital Acq. (PCXU) | $50M | SPAC | EF Hutton |
| Blank check company targeting space transport and technology. | |||
| Apex Technology Acquisiti (APXBU) | $300M | SPAC | Goldman |
| Blank check company targeting software and internet technology. | |||
| Atlas Growth Acquisition (ATLAU) | $110M | SPAC | Ladenburg |
| Blank check company targeting Asian healthcare and TMT. | |||
| Icosavax (ICVX) | $100M | Health Care | Jefferies |
| Phase 1 biotech developing vaccines for respiratory diseases. | |||
| Nuvalent (NUVL) | $100M | Health Care | JP Morgan |
| Preclinical oncology biotech developing small molecule kinase inhibitors. | |||
| Aquarius I Acquisition (AQUI.U) | $50M | SPAC | Maxim |
| Blank check company formed by Lion Group Holding. | |||
| Authentic Brands (AUTH) | $1,500M | Consumer Discretionary | BofA |
| Owns and licenses various consumer lifestyle brands. | |||
| Biofrontera (BFRI) | $25M | Health Care | Benchmark |
| Spinoff of Biofrontera AG's commercialized dermatology portfolio. | |||
| Conyers Park III Acq. (CPAAU) | $350M | SPAC | Deutsche Bank |
| Third blank check company led by consumer industry veterans from Centerview Capital. | |||
| Genius Group (GNUS.RC) | $49M | Technology | ThinkEquity |
| Global provider of online and in-person entrepreneur education services. | |||
| Pomona Acquisition (PMACU) | $50M | SPAC | JonesTrading |
| Blank check company targeting fintech in Asia. | |||
| Preston Hollow Com. Capt. (PHCC.RC) | $100M | Financials | JP Morgan |
| Provides specialized financing for social and economic projects. | |||
| RichSpace Acquisition (RICHU) | $40M | SPAC | Prime Num. Cap. |
| Blank check company targeting fintech and blockchain. | |||
| Rotech Healthcare (ROTK) | $100M | Health Care | BofA |
| Provides home medical equipment and services. | |||
| Teads (TEAD) | $700M | Technology | Goldman |
| Spin-off of Altice's programmatic ad platform for advertisers and publishers. | |||
| The Better Being Co. (BBCO) | $100M | Consumer Staples | Goldman |
| Sells vitamins and supplements under the Solaray, KAL, and other brands. | |||
| Traeger (COOK) | $100M | Consumer Staples | Morgan Stanley |
| Makes premium backyard wood pellet grills. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/9/21, the Renaissance IPO Index was down 0.8% year-to-date, while the S&P 500 was up 15.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Palantir Technologies (PLTR). The Renaissance International IPO Index was down 5.2% year-to-date, while the ACWX was up 7.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Smoore International and EQT Partners.
