Challenging conditions in the IPO market continued this past week, with only one of the week’s two major deals getting done. Leading PE firm TPG (TPG) completed its $1 billion IPO, joined by a Nasdaq uplisting and nine SPACs, while outsourced HR platform Justworks (JW) postponed. The pipeline continued to see some activity, with seven IPOs and five SPACs submitting initial filings.
TPG (TPG) priced at the midpoint to raise $1.0 billion at a $9.3 billion market cap. Mostly focused on private equity, this alternative asset manager had $109 billion in AUM across five investing platforms as of 9/30/21. The firm has demonstrated an ability to diversify into areas like ESG and real estate, and its capital and growth platforms have delivered 20%+ IRRs since inception. It is highly exposed to market movements, particularly in equities. TPG finished up 11%.
Nasdaq uplisting Cerberus Cyber Sentinel (CISO) raised $10 million at a $631 million market cap. The company provides a full range of cybersecurity consulting and related services, encompassing all pillars of cybersecurity, compliance, and culture. The company is unprofitable but has delivered explosive growth. Cerberus Cyber Sentinel finished up 8%.
Nine SPACs went public led by The Gores Group’s Gores Holdings IX (GHIXU), which raised $525 million.
| 11 IPOs During the Week of January 10th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/14 |
| TPG (TPG) | $1,000M | $9,329M | 0% | +15% | +11% |
| Global alternative asset manager. | |||||
| Cerberus Cyber Sentinel (CISO) | $10M | $631M | 0% | +8% | +8% |
| Provides tailored security solutions through consulting and related services. | |||||
| Industrial Tech Acq. II (ITAQU) | $150M | $188M | 0% | +0% | +0% |
| Second blank check company targeting the industrial, energy, and communications technology space. | |||||
| Western Acq. Ventures (WAVSU) | $100M | $129M | 0% | +0% | +0% |
| Blank check company targeting various industries including infrastructure and health. | |||||
| Papaya Growth Opp. I (PPYAU) | $250M | $329M | 0% | +0% | +0% |
| Blank check company backed by Launchpad Capital targeting tech and media. | |||||
| Atlantic Coastal Acq. II (ACABU) | $261M | $326M | 0% | n/a | +0% |
| Blank check company targeting the next-generation mobility sector. | |||||
| Consilium Acquisition I (CSLMU) | $165M | $203M | 0% | n/a | +0% |
| Blank check company formed by Consilium Investment Management targeting "new economy sectors". | |||||
| Andretti Acquisition (WNNR.U) | $200M | $250M | 0% | n/a | +0% |
| Blank check company co-led by racing driver Michael Andretti targeting the automotive industry. | |||||
| 10X Capital Venture III (VCXB.U) | $261M | $359M | 0% | n/a | +0% |
| Third blank check company formed by 10X Capital targeting a tech-enabled business. | |||||
| Broad Capital Acquisition (BRACU) | $100M | $129M | 0% | +0% | +0% |
| Blank check company targeting the aviation and aerospace industry. | |||||
| Gores Holdings IX (GHIXU) | $525M | $656M | 0% | n/a | n/a |
| Blank check company formed by The Gores Group. | |||||
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Seven IPOs submitted initial filings. Leading eyecare company Bausch + Lomb (BLCO) filed for an estimated $3 billion dual listing in the US and Canada. Car sharing platform Turo (TURO) filed for an estimated $300 million IPO. Renewable energy companies DESRI (DESR) and REV Renewables (RVR), software provider Basis Global Technologies (BASI), and cell therapy biotech Arcellx (ACLX) all filed to raise $100 million. Digital media firm The Arena Group (AREN) filed to raise $30 million.
Five SPACs submitted initial filings led by healthcare technology-focused First Digital Health Acquisition (FDHAU), which filed to raise $175 million.
| 12 Filings During the Week of January 10th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Arcellx (ACLX) | $100M | Health Care | BofA |
| Phase 1 biotech developing cell therapies for cancer and other incurable diseases. | |||
| Basis Technologies (BASI) | $100M | Technology | Goldman |
| Provides SaaS for programmatic ad buying, workflow automation, and analytics. | |||
| DESRI (DESR) | $100M | Utilities | Goldman |
| Leading renewable energy IPP in the US. | |||
| First Digital Health Acq. (FDHAU) | $175M | SPAC | William Blair |
| Blank check company targeting healthcare technology. | |||
| REV Renewables (RVR) | $100M | Utilities | Morgan Stanley |
| Develops, acquires, and operates energy storage and renewables generation assets. | |||
| Alset Capital Acquisition (ACAXU) | $75M | SPAC | EF Hutton |
| Blank check company backed by Alset EHome International targeting real estate. | |||
| Bausch + Lomb (BLCO) | $3,000M | Health Care | Morgan Stanley |
| Leading supplier of contact lenses and eyecare products. | |||
| Relativity Acquisition (RACYU) | $125M | SPAC | A.G.P. |
| Blank check company targeting the cannabis industry. | |||
| Sports & Health Tech Acq. (LDSPU) | $150M | SPAC | RBC |
| Blank check company targeting the sports and health technology sectors. | |||
| The Arena Group (AREN) | $30M | Communication Services | B. Riley |
| Group media network that operates an online publishing platform. | |||
| Evergreen Corp (EVGNU.RC) | $100M | SPAC | EF Hutton |
| Blank check company targeting tech-focused businesses in Asia. | |||
| Turo (TURO) | $300M | Technology | Morgan Stanley |
| Online platform for peer-to-peer car sharing. | |||
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Renaissance Capital recently released its 2021 Rankings for IPO law firms, as well as updated our Annual Review and other year-end content. See below for links to our reviews:
- 2021 US IPO Review
- The 2021 IPO Market's Law Firm Leaderboard
- The 2021 IPO Rankings for the Big Four Accounting Firms
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/13/2022, the Renaissance IPO Index was down % year-to-date, while the S&P 500 was down %. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down % year-to-date, while the ACWX was down %. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and EQT Partners.
