The IPO market remained active this past week as seven IPOs raised $2.1 billion. SPAC activity kept steady with 10 blank check IPOs raising $1.6 billion. New filers continued to pour into the IPO pipeline, with 12 IPOs and nine SPACs submitting initial filings.
Software development platform GitLab (GTLB) priced above the upwardly revised range to raise $801 million at a $12.7 billion market cap. This founder-led company provides an end-to-end DevOps platform to over 3,500 customers. Fast growing and highly unprofitable, GitLab competes with large players such as GitHub. GitLab finished up 49%.
B2B payments platform AvidXchange (AVDX) upsized and priced at the high end of the upwardly revised range to raise $660 million at a $5.1 billion market cap. AvidXchange provides accounts payable software solutions to over 7,000 middle market businesses. Growing but substantially unprofitable, the company facilitated 53 million transactions and $38 billion in payment volume in 2020. AvidXchange finished down 7%.
Telecom tower giant IHS Holding (IHS) downsized and priced at the low end to raise $378 million at a $7.1 billion market cap. This emerging markets-focused telecom tower owner and operator has over 30,000 towers across nine countries in Africa, the Middle East, and Latin America. Despite strong margins and cash flow, IHS has significant capex needs. IHS Holding finished down 21%.
Orthopedic medical device company Paragon 28 (FNA) priced at the midpoint to raise $125 million at a $1.3 billion market cap. This medical device company is developing orthopedic implants and related medical devices for foot and ankle ailments. Paragon 28 experiences seasonal business and while growth accelerated in the 1H21, it is expected to slow in the 3Q. Paragon 28 finished up 17%.
Medical diagnostics company Lucid Diagnostics (LUCD) priced at the low end to raise $70 million at a $537 million market cap. This company makes diagnostic tests for esophageal precancer and cancer in gastroesophageal reflux disease (GERD) patients. Lucid Diagnostic states that its lead product is the first and only commercially available screening tool to prevent esophageal adenocarcinoma through early detection. Lucid Diagnostics finished down 33%.
Allogeneic T cell biotech MiNK Therapeutics (INKT) downsized and priced at the low end to raise $40 million at a $446 million market cap. This biotech is developing allogeneic natural killer T cell therapies for cancer and other immune-mediated diseases. Its lead candidate is in a Phase 1 trial for multiple myeloma and expects to report topline data in the 4Q21. MiNK Therapeutics finished flat.
Healthcare IT platform Healthcare Triangle (HCTI) downsized and priced at the low end of the downwardly revised range to raise $13 million at a $146 million market cap. Slow growing and profitable, this company provides data science and AI-enabled software solutions, platforms, and services for the healthcare and life sciences industry. Healthcare Triangle finished down 13%.
10 blank check companies raised $1.6 billion this past week led by cloud-focused Founder SPAC (FOUNU), which raised $275 million.
| 17 IPOs During the Week of October 11th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/15 |
| GitLab (GTLB) | $801M | $12,657M | 34% | +35% | +49% |
| Provides software development and collaboration tools for programmers. | |||||
| Paragon 28 (FNA) | $125M | $1,260M | 0% | +17% | +17% |
| Makes orthopedic implants and medical devices for the foot and ankle. | |||||
| Sanaby Health Acq. I (SANBU) | $150M | $195M | 0% | +1% | +1% |
| Blank check company targeting the healthcare sector. | |||||
| Black Mountain Acq. (BMAC.U) | $240M | $300M | 0% | +0% | +1% |
| Blank check company formed by the founder of the Black Mountain Entities. | |||||
| Achari Ventures I (AVHIU) | $100M | $125M | 0% | +0% | +0% |
| Blank check company backed by Achari Ventures targeting the cannabis industry. | |||||
| Rose Hill Acquisition (ROSEU) | $125M | $169M | 0% | +1% | +0% |
| Blank check company targeting fast-growing and profitable sectors in Latin America. | |||||
| Founder SPAC (FOUNU) | $275M | $344M | 0% | +0% | +0% |
| Blank check company targeting the cloud and other digital transformation sectors. | |||||
| MiNK Therapeutics (INKT) | $40M | $446M | -8% | +0% | +0% |
| Phase 1 biotech developing allogeneic NK T cells for cancer and other diseases. | |||||
| Fat Projects Acquisition (FATPU) | $100M | $126M | 0% | -1% | +0% |
| Blank check company targeting tech-enabled businesses in Southeast Asia. | |||||
| Tristar Acquisition I (TRIS.U) | $200M | $250M | 0% | -1% | -1% |
| Blank check company backed by Navigation Capital targeting a telecom and tech business. | |||||
| Gesher I Acquisition (GIACU) | $100M | $127M | 0% | +0% | -1% |
| Blank check company targeting Israeli businesses with international operations. | |||||
| PepperLime Health Acq. (PEPLU) | $150M | $188M | 0% | -1% | -1% |
| Blank check company targeting businesses combining tech and consumer health and wellness. | |||||
| Compass Digital Acq. (CDAQU) | $200M | $250M | 0% | -2% | -2% |
| Blank check company led by the former CEO of Wipro targeting the tech sector. | |||||
| AvidXchange (AVDX) | $660M | $5,052M | 14% | +0% | -7% |
| Provides a billing and payments software platform to mid-market businesses. | |||||
| Healthcare Triangle (HCTI) | $13M | $146M | -20% | -10% | -13% |
| Provides data science and AI-enabled healthcare information solutions. | |||||
| IHS Holding (IHS) | $378M | $7,056M | -7% | -19% | -21% |
| Africa's largest independent telecom towers operator. | |||||
| Lucid Diagnostics (LUCD) | $70M | $537M | -7% | -16% | -33% |
| Makes diagnostic tests for esophageal precancer and cancer. | |||||
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12 IPOs submitted initial filings this past week. Russian real estate platform Cian (CIAN), usability testing platform UserTesting (USER), online fashion retailer Lulu’s Fashion Lounge Holdings (LVLU), laser hair removal company Milan Laser (MLAN), Texas bank Third Coast Bancshares (TCBX), cancer biotech IO Biotech (IOBT), car rental company Hertz Global Holdings (HTZ), Brazilian engineering software provider CI&T (CINT), and expense management platform Expensify (EXFY) all filed to raise $100 million. Health food brand The Real Good Food Company (RGF) filed to raise $86 million. Belgium-listed diagnostics company MDxHealth (MDXH) filed to raise $30 million. German micro-cap Mainz Biomed (MYNZ) filed to raise $10 million.
Nine SPACs submitted initial filings, led by tech and consumer-focused Mercato Partners Acquisition (MPRAU), which filed to raise $200 million.
| 21 Filings During the Week of October 11th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Bombax Healthcare Acq. (BBAXU.RC) | $50M | SPAC | JonesTrading |
| Blank check company targeting the healthcare or healthcare-related sectors. | |||
| CI&T (CINT) | $100M | Technology | Goldman |
| Brazilian provider of outsourced IT development services. | |||
| Expensify (EXFY) | $100M | Technology | JP Morgan |
| Provides a cloud-based expense management software platform. | |||
| Finnovate Acquisition (FNVTU) | $150M | SPAC | EarlyBird |
| Blank check company targeting the fintech sector in Israel. | |||
| Hertz (HTZ) | $100M | Industrials | Goldman |
| Provides vehicle rental services. | |||
| IO Biotech (IOBT) | $100M | Health Care | Morgan Stanley |
| Phase 3-ready biotech developing immunotherapies for melanoma and other cancers. | |||
| Milan Laser (MLAN) | $100M | Consumer Discretionary | Goldman |
| Owns and operates laser more than 130 hair removal clinics in the US. | |||
| Sculptor Acquisition I (SCUA.U) | $200M | SPAC | Goldman |
| Blank check company formed by Sculptor Capital Management. | |||
| Third Coast Bank (TCBX) | $75M | Financials | Stephens |
| Commercially-focused Texas bank with 12 branches. | |||
| Digital Health Acq. (DHACU) | $150M | SPAC | A.G.P. |
| Blank check company targeting healthcare technology. | |||
| Metal Sky Star Acq. (MSKYU.RC) | $100M | SPAC | Ladenburg |
| Blank check company targeting middle-market growth businesses. | |||
| TLGY Acquisition (TLGY.U) | $175M | SPAC | Mizuho |
| Blank check company formed by TLGY Holdings targeting the biopharma and tech-enabled B2C industries. | |||
| Cian (CIAN) | $100M | Technology | Morgan Stanley |
| Provides an online platform for real estate services in Russia. | |||
| Intelligent Medicine Acq. (IQMDU) | $150M | SPAC | Cantor Fitz. |
| Blank check company targeting life science businesses using AI, ML, and big data. | |||
| MDxHealth (MDXH) | $30M | Health Care | Piper Sandler |
| Belgian provider of genomic testing products for prostate cancer. | |||
| Mercato Partners Acq. (MPRAU) | $200M | SPAC | BofA |
| Blank check company formed by Mercato Partners targeting tech or branded consumer products. | |||
| UserTesting (USER) | $100M | Technology | Morgan Stanley |
| Provides an enterprise-grade SaaS platform for usability testing. | |||
| Green Visor FinTech I (GVCIU) | $150M | SPAC | Mizuho |
| Blank check company formed by Green Visor Capital targeting the fintech sector. | |||
| Lulu's (LVLU) | $100M | Technology | Goldman |
| Operates an online store for women's apparel and accessories. | |||
| Mainz Biomed (MYNZ) | $10M | Health Care | Boustead |
| Commercializing in vitro molecular tests for cancer screening. | |||
| Real Good Foods (RGF) | $86M | Consumer Staples | Jefferies |
| Makes low-carb high-protein packaged foods. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/14/2021, the Renaissance IPO Index was up 3.6% year-to-date, while the S&P 500 was up 18.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Moderna (MRNA) and Uber Technologies (UBER). The Renaissance International IPO Index was down 18.3% year-to-date, while the ACWX was up 7.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank Corp.
