The IPO market remained active this past week as four IPOs raised $2.3 billion, joined by two direct listings. SPAC activity kept steady with nine blank check IPOs. New filers continue to pour into the IPO pipeline, with 17 IPOs and 10 SPACs submitting initial filings.
NYSE direct listing Warby Parker (WRBY) opened for trading at $54 (+35% vs. reference price) for an implied market value of $6.6 billion market cap. Warby Parker sells prescription glasses starting at $95 per pair through both its online store and in over 145 physical locations. Despite operating in an increasingly competitive space, this eyeglasses retailer has a track record of steady growth and a sticky customer base. Warby Parker finished up 34%.
Nasdaq direct listing Amplitude (AMPL) opened for trading at $50 (+43% vs. reference price) for an implied market value of $6.6 billion market cap. Amplitude provides a customer behavior analytics for over 1,200 customers to improve and optimize digital products and businesses. Growing but unprofitable, this digital optimization company has a large market opportunity. Amplitude finished up 56%.
Hair care brand Olaplex Holdings (OLPX) upsized and priced above the upwardly revised range to raise $1.5 billion at a $14.5 billion market cap. Backed by Advent, this company is a leading brand of prestige hair health products containing a patented repair ingredient. Olaplex operates in a crowded market, but has demonstrated explosive growth and robust profitability. Olaplex finished up 9%.
Tech services provider TDCX (TDCX) upsized and priced at the high end to raise $348 million at a $2.6 billion market cap. This Singapore-based company provides digital customer experience solutions globally in more than 20 languages. Despite operating in competitive markets, the company has delivered solid growth, and it has a multibillion-dollar opportunity. TDCX finished up 6%.
Drug discovery platform Exscientia (EXAI) upsized and priced at the high end to raise $305 million at a $2.7 billion market cap. This AI-driven biotech develops and licenses small molecule therapies, as well as its drug discovery platform. Exscientia has a large pipeline and collaborations with global pharmaceutical companies, though it is early stage and faces significant competition. Exscientia finished up 23%.
Restaurant chain First Watch Restaurant Group (FWRG) priced within the range to raise $170 million at a $1.1 billion market cap. Only serving breakfast, brunch, and lunch, this restaurant chain owns and franchises over 420 locations across the US. Despite continued labor and food shortages, First Watch Restaurant Group has had a strong recovery from the pandemic with double digit same-restaurant sales. First Watch finished up 23%.
Nine blank check companies raised $1.9 billion this past week led by industrial technology-focused Hennessy Capital Investment VI (HCVIU), which raised $300 million.
| 15 IPOs During the Week of September 27th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/01 |
| Amplitude (AMPL) | $0M | $4,558M | 0% | +57% | +56% |
| Provides customer behavior analytics for digital business optimization. | |||||
| Warby Parker (WRBY) | $0M | $4,778M | 0% | +36% | +34% |
| Sells low-cost prescription glasses online and in over 145 stores. | |||||
| Exscientia (EXAI) | $305M | $2,739M | 5% | +23% | +23% |
| Develops and licenses therapies designed with its AI drug discovery platform. | |||||
| First Watch (FWRG) | $170M | $1,075M | -3% | +23% | +23% |
| Operates daytime casual-dining restaurants in the US. | |||||
| MELI Kaszek Pioneer Corp (MEKA) | $250M | $370M | 0% | +12% | +10% |
| Blank check company formed by MercadoLibre and Kaszek targeting tech in Latin America. | |||||
| Olaplex Holdings (OLPX) | $1,548M | $14,546M | 40% | +17% | +9% |
| Sells hair care products containing a patented repair ingredient. | |||||
| TDCX (TDCX) | $348M | $2,571M | 6% | +6% | +6% |
| Provides customer experience and support services to tech companies. | |||||
| dMY Technology Group VI (DMYS.U) | $210M | $263M | 0% | +1% | +1% |
| Sixth blank check company formed by Niccolo de Masi and Harry You targeting mobile apps. | |||||
| Monterey Bio Acquisition (MTRYU) | $100M | $125M | 0% | +1% | +1% |
| Blank check company targeting the biotech sector. | |||||
| Artemis Strategic Corp (ARTEU) | $175M | $219M | 0% | +0% | +1% |
| Blank check company focused on the gaming, hospitality, and entertainment industries. | |||||
| Parabellum Acquisition (PRBM.U) | $125M | $156M | 0% | +0% | +0% |
| Blank check company targeting the internet of things transformation. | |||||
| Hennessy Capital VI (HCVIU) | $300M | $400M | 0% | +0% | +0% |
| Blank check company formed by Hennessy Capital targeting US industrial technology. | |||||
| Marblegate Acquisition (GATEU) | $300M | $412M | 0% | -1% | -1% |
| Blank check company formed by Marblegate targeting post-restructuring businesses. | |||||
| Home Plate Acquisition (HPLTU) | $200M | $250M | 0% | -1% | -1% |
| Blank check company targeting high-growth fintech and Embedded Finance businesses. | |||||
| Berenson Acquisition I (BACA.U) | $250M | $313M | 0% | -2% | -2% |
| Blank check company formed by merchant bank Berenson targeting software or tech-enabled services. | |||||
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17 IPOs submitted initial filings this past week. EV developer Rivian Automotive (RIVN) filed for an estimated $6 billion IPO. Revenue cycle management platform Ensemble Health Partners (ENSB) filed for an estimated $500 million IPO. Restaurant chain Portillo’s (PTLO) filed for an estimated $400 million IPO. Specialty chemicals producer Hexion Holdings (HXN) filed for an estimated $250 million IPO. Girl’s fashion retailer Claire’s (CLRS), inflammatory disease biotech Ventyx Biosciences (VTYX), energy storage provider Fluence Energy (FLNC), medical device maker Minerva Surgical (UTRS), investment solutions provider P10 (PX), coconut water brand The Vita Coco Company (COCO), aesthetic medical device provider Candela Medical (CDLA), enterprise cloud data management platform Informatica (INFA), Chinese drug in-licensor LianBio (LIAN), and solid tumor biotech Xilio Therapeutics (XLO) all filed to raise $100 million. Winery Winc (BEV) and technology firm Arteris (AIP) both filed to raise $75 million. Micro-cap biotech Hillstream BioPharma (HILS) filed to raise $17 million.
Ten SPACs submitted initial filings, led by transportation-focused Pegasus Digital Mobility Acquisition (PGSS.U), which filed to raise $200 million.
| 27 Filings During the Week of September 27th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Anthemis Digital Acq. I (ADALU) | $200M | SPAC | Barclays |
| Blank check company formed by Anthemis Group targeting financial technology. | |||
| Arteris (AIP) | $75M | Technology | Jefferies |
| Provides interconnect and intellectual property technology for System-on-Chip semiconductors. | |||
| Candela Medical (CDLA) | $100M | Health Care | BofA |
| Provides medical devices for aesthetic procedures. | |||
| Informatica (INFA) | $100M | Technology | Goldman |
| Provides an enterprise cloud data management platform. | |||
| LAVA Medtech Acquisition (LVACU) | $100M | SPAC | RBC |
| Blank check company targeting the medtech sector. | |||
| LianBio (LIAN) | $100M | Health Care | Goldman |
| Developing in-licensed therapies for a variety of indications in China. | |||
| Rivian Automotive (RIVN) | $6,000M | Consumer Discretionary | Morgan Stanley |
| Manufactures premium electric SUVs, vans, and pickup trucks. | |||
| Verity Acquisition (VRTYU.RC) | $175M | SPAC | Maxim |
| Blank check company targeting healthcare. | |||
| Xilio Therapeutics (XLO) | $100M | Health Care | Morgan Stanley |
| Phase 1 biotech developing novel molecules to treat solid tumors. | |||
| Fortune Joy Intl. Acq. (XYGJU) | $40M | SPAC | Tiger Brokers |
| Blank check company targeting businesses in the Asia-Pacific region. | |||
| Sportsmap Tech Acq. (SMAPU) | $100M | SPAC | Roth Cap. |
| Blank check company formed by the founder of Gow Media targeting sports tech. | |||
| Claire's (CLRS) | $100M | Consumer Discretionary | Goldman |
| Girl's fashion, jewelry, and accessories retailer. | |||
| Ensemble Health Partners (ENSB) | $500M | Technology | Goldman |
| Provides a healthcare revenue cycle management platform. | |||
| Hexion (HXN) | $250M | Materials | Morgan Stanley |
| Makes adhesives and performance materials used in engineered wood products. | |||
| TMT Acquisition (TMTCU) | $50M | SPAC | Maxim |
| Blank check company targeting businesses in Asia. | |||
| Ventyx Biosciences (VTYX) | $100M | Health Care | Jefferies |
| Phase 1 biotech developing selective therapies for inflammatory and autoimmune diseases. | |||
| ESGEN Acquisition (ESACU) | $200M | SPAC | Citi |
| Blank check company formed by Energy Spectrum targeting the energy and infrastructure value chain. | |||
| Fluence Energy (FLNC) | $100M | Industrials | JP Morgan |
| Energy storage products and services provider formed by Siemens and AES. | |||
| Pegasus DM Acquisition (PGSS.U) | $200M | SPAC | Barclays |
| Blank check company targeting the next-generation transportation sector. | |||
| PepperLime Health Acq. (PEPLU) | $150M | SPAC | Oppenheimer |
| Blank check company targeting businesses combining tech and consumer health and wellness. | |||
| Hillstream BioPharma (HILS) | $17M | Health Care | ThinkEquity |
| Preclinical biotech developing therapies for solid tumors by targeting ferroptosis. | |||
| Minerva Surgical (UTRS) | $100M | Health Care | JP Morgan |
| Makes minimally invasive devices to treat abnormal uterine bleeding. | |||
| P10 (PX) | $100M | Financials | Morgan Stanley |
| Provides private investment solutions to alternative asset managers. | |||
| Portillo's (PTLO) | $400M | Consumer Discretionary | Jefferies |
| Fast casual restaurant chain known for its Chicago-style hot dogs. | |||
| Vita Coco (COCO) | $100M | Consumer Staples | Goldman |
| Makes Vita Coco coconut water and other ready-to-drink beverages. | |||
| Winc (BEV) | $75M | Consumer Staples | BofA |
| Produces and distributes wine in the US. | |||
| Worldwide Webb Acq. (WWAC.U) | $200M | SPAC | BofA |
| Blank check company formed by the founders of Purple Innovation targeting the internet sector. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/16/2021, the Renaissance IPO Index was up 7.8% year-to-date, while the S&P 500 was up 19.1%. 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 14.8% year-to-date, while the ACWX was up 9.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Smoore International and EQT Partners.
