IPOs

US IPO Weekly Recap: Playtika and Affirm’s billion-dollar deals headline an 8 IPO week

In another busy week for the IPO market, eight IPOs and 24 SPACs went public, headlined by two billion-dollar deals. Activity shows no sign of letting up as 18 IPOs and 23 SPACs submitted initial filings.

Casino game developer Playtika Holding (PLTK) priced above the range to raise $1.9 billion at an $11.4 billion market cap. The company is a leading developer of social casino and other casual mobile games, and its portfolio contains nine of the top 100 grossing mobile games in the US. The company has demonstrated growth and strong margins, though relies on a small percentage of players for revenue. Playtika finished up 17%.

Affirm Holdings (AFRM), which offers “buy now pay later” loans for online purchases, priced above the upwardly revised range to raise $1.2 billion at a $14.8 billion market cap. Unprofitable and fast growing, the company is a leading player in the space, facilitating over $10.7 billion in GMV from 6.2 million customers over the last four years. Affirm finished up 139%.

Multi-channel pet care retailer Petco Health and Wellness (WOOF) priced above the range to raise $864 million at a $4.6 billion. The company has focused on growing its mix of owned brands and increased its e-commerce penetration. While its growth track record has been inconsistent, the company has seen a dramatic pick up in growth due to increased pet ownership during COVID-19. Petco finished up 54%.

Auto service group Driven Brands Holdings (DRVN) priced above the range to raise $700 million at a $3.6 billion market cap. A leading franchiser in North America, Driven Brands has over 4,100 locations across various services. Its franchised model supports strong margins and cash flow, though it is highly leveraged post-IPO. Driven Brands finished up 21%.

Fashion e-commerce platform Poshmark (POSH) raised $277 million at a $3.5 billion market cap and popped 142%, the best first-day performance of the week. With growing demand for secondhand apparel, gross merchandise value has grown 25%+ in six of the last seven quarters, though it operates in a highly competitive market and could face pressure on its take rate. Poshmark finished up 98%.

Motorspork Network spin-off Motorsport Games (MSGM) priced at the high end of the upwardly revised range to raise $60 million at a $340 million market cap. The company develops and publishes multi-platform racing video games and is currently the official developer and publisher of the NASCAR video game franchise. Motorsport Games finished up 50%.

Chinese classical music platform Kuke Music Holding (KUKE) priced at the low end to raise $50 million at a $308 million market cap. Kuke was China’s largest classical music licensing service provider and the second largest online classical music subscription service provider in 2019. The company’s quarterly growth has been lumpy, and revenue declined in both the FY 19 and 9mo20. Kuke finished up 1%.

Chinese chemicals maker Qilian International (QLI) priced at the low end to raise $25 million at a $175 million market cap. The company focuses on the development, manufacture, marketing, and sale of various products, including heparin and traditional Chinese medicine derivatives. The company is profitable but saw revenue decline in the FY19. Qilian finished up 75%.

In another busy week for blank check IPOs, 24 SPACs raised $6.8 billion, led by Thoma Bravo’s software-focused Thoma Bravo Advantage (TBA), which raised $900 million, and industrial tech SPAC Pontem Corp. (PNTM.U), which raised $600 million.

32 IPOs During the Week of January 11th, 2021
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 01/15
Affirm (AFRM) $1,205M $14,752M 38% +98% +139%
Offers "buy now pay later" loans for online purchases.
Poshmark (POSH) $277M $3,473M 14% +142% +98%
Peer-to-peer fashion e-commerce site.
Qilian International (QLI) $25M $175M -17% +100% +75%
Chinese producer of traditional medicines, chemicals, and fertilizers.
Petco (WOOF) $864M $4,626M 16% +63% +54%
Multi-channel pet care retailer with about 1,500 locations across North America.
Motorsport Games (MSGM) $60M $340M 18% +75% +50%
Leading developer of racing games being spun out of Motorsport Network.
Driven Brands (DRVN) $700M $3,609M 19% +21% +21%
North America's largest automotive services company with more than 4,100 locations.
Northern Genesis Acq. II (NGAB.U) $360M $450M 0% +19% +21%
Blank check company targeting sustainability and societal infrastructure.
Playtika (PLTK) $1,877M $11,372M 17% +17% +17%
Leading developer of casino and other mobile games.
Group Nine Acquisition (GNACU) $200M $250M 0% +11% +11%
Blank check company formed by Group Nine Media targeting the media industry.
Hennessy Capital V (HCICU) $300M $375M 0% +11% +11%
Blank check company targeting US sustainable industrial technology and infrastructure.
Fortress Capital Acq. (FCAX.U) $350M $438M 0% +8% +10%
Blank check company formed by Fortress targeting financial services.
Deep Lake Capital Acq. (DLCAU) $180M $225M 0% +7% +10%
Blank check company led by former PayPal executives targeting the fintech sector.
Hamilton Lane Alliance I (HLAHU) $240M $267M 0% +10% +7%
Blank check company formed by Hamilton Lane.
890 5th Avenue Partners (ENFAU) $250M $320M 0% +5% +6%
Blank check company targeting the technology, media, and telecommunications sectors.
26 Capital Acquisition (ADERU) $240M $300M 0% +6% +6%
Blank check company formed by SpringOwl Asset Management targeting leisure, e-commerce, and consumer industries.
Environmental Impact Acq. (ENVIU) $180M $225M 0% +7% +5%
Blank check company formed by Canaccord targeting the sustainability sector.
Marlin Technology (FINMU) $360M $450M 0% +4% +5%
Blank check company formed by Marlin Equity Partners targeting the technology sector.
Pontem Corp. (PNTM.U) $600M $750M 0% +3% +4%
Blank check company targeting industrial technology businesses.
OCA Acquisition (OCAXU) $130M $163M 0% +4% +4%
Blank check company formed by Olympus Capital Asia targeting tech and financial services.
Edify Acquisition (EACPU) $240M $300M 0% +4% +4%
Blank check company formed by Colbeck Capital Management targeting the education sector.
Athlon Acquisition (SWETU) $240M $300M 0% +5% +4%
Blank check company formed by Causeway Media Partners targeting the health, wellness, and fitness space.
Big Cypress Acquisition (BCYPU) $100M $129M 0% +4% +4%
Blank check company targeting life sciences businesses in the US and Israel.
Authentic Equity Acq. (AEACU) $200M $263M 0% +4% +4%
Blank check company formed by Authentic Equity targeting a North American CPG business.
Silver Crest Acquisition (SLCRU) $300M $375M 0% +3% +4%
Blank check company formed by Ascendent Capital Partners targeting the consumer sector.
Monument Circle Acq. (MONCU) $218M $273M 0% +5% +4%
Blank check company formed by Emmis Communications targeting media and entertainment.
Global Partner Acq. II (GPACU) $275M $344M 0% +3% +4%
Blank check company targeting consumer, e-commerce, and retail disruptors.
Adit EdTech Acquisition (ADEX.U) $240M $300M 0% +3% +3%
Blank check company formed by Adit Ventures targeting the education sector.
Healthcare Capital Corp. (HCCCU) $240M $300M 0% +3% +3%
Blank check company targeting the healthcare industry.
Kuke Music (KUKE) $50M $308M -9% +1% +1%
Provides classical music licensing, subscription, and education services in China.
Rotor Acquisition (ROT.U) $240M $300M 0% n/a +0%
Blank check company led by former dealmakers at Credit Suisse and BofA targeting the industrial and consumer sectors.
Thoma Bravo Advantage (TBA) $900M $1,147M 0% n/a +0%
Blank check company formed by Thoma Bravo targeting a software business.
Class Acceleration Corp (CLAS.U) $225M $281M 0% n/a +0%
Blank check company led by venture investor Michael Moe targeting digital education.


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18 IPOs submitted initial filings. Online mortgage lender loanDepot (LDI) and dating app unicorn Bumble (BMBL) filed for $1.5 billion and $900 million estimated IPOs, respectively. Home healthcare equipment provider Apria (APR) filed for an estimated $800 million IPO. Preclinical cell therapy biotech Sana Biotechnology (SANA), advertising software maker Viant Technology (DSP), and cell therapy biotech Vor Biopharma (VOR) all filed to raise $150 million. Chinese e-commerce services provider WeTrade Group (WETG) filed for a $121 million Nasdaq uplisting and COVID-19 test kit maker Lucira Health (LHDX) filed to raise $115 million. Chinese education provider First High-School Education Group (FHS), autoimmune biotech Landos Biopharma (LABP), solid tumor biotech Bolt Biotherapeutics (BOLT), cancer biotech Immunocore Holdings (IMCR), COVID-19 test maker LumiraDx (LMDX), rare disease biotech Pharvaris (PHVS), cleaning product maker PurposeBuilt Brands (PBLT), cancer biotech Sensei Biotherapeutics (SNSE), and NASH biotech Terns Pharmaceuticals (TERN) all filed to raise $100 million. Phase 3 biotech Angion Biomedica (ANGN) filed to raise $75 million.

23 SPACs submitted initial filings, led by Michael Klein’s sixth and seventh SPACs Churchill Capital Corp. VI (CCVI.U) and Churchill Capital Corp. VII (CVIIU.RC), which filed to raise $400 million and $300 million, respectively.

41 Filings During the Week of January 11th, 2021
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Angion Biomedica (ANGN) $75M Health Care Cowen
Phase 3 biotech developing small molecule therapies for acute organ injuries.
Apria (APR) $800M Health Care Citi
Provides home healthcare equipment and services in the US.
Bolt Biotherapeutics (BOLT) $100M Health Care Morgan Stanley
Phase 1/2 biotech developing targeted therapies for solid tumors.
Bumble (BMBL) $900M Technology Goldman
Operates online dating apps including Badoo and Bumble.
Gaming & Hospitality Acq. (GHACU) $150M SPAC Deutsche Bank
Blank check company formed by Affinity Gaming targeting the gaming and hospitality sectors.
Immunocore (IMCR) $100M Other Goldman
Phase 3 biotech developing T Cell therapies for cancer and other diseases.
Lucira Health (LHDX) $115M Health Care BofA
Developing single-use test kits for COVID-19 and other infectious diseases.
LumiraDx (LMDX) $100M Health Care Jefferies
UK-based provider of point-of-care diagnostics including COVID-19 tests.
Music Acquisition (TMAC.U) $200M SPAC Citi
Blank check company targeting the music sector.
Pharvaris (PHVS) $100M Health Care Morgan Stanley
Dutch Phase 1 biotech developing small molecule therapies for rare diseases.
PurposeBuilt Brands (PBLT) $100M Consumer Staples Barclays
Provides specialty cleaning and disinfecting products.
Sensei Biotherapeutics (SNSE) $100M Health Care Citi
Phase 2 biotech developing bacteriophage-based therapies for cancer.
Terns Pharmaceuticals (TERN) $100M Health Care JP Morgan
Phase 2 biotech developing small molecule therapies for NASH.
Thimble Point Acquisition (THMAU) $200M SPAC Citi
Blank check company targeting high-growth software and technology.
Thunder Bridge III (TBCP.U) $300M SPAC Morgan Stanley
Third blank check company led by Gary Simanson targeting the fintech industry.
Viant Technology (DSP) $150M Technology BofA
Provides programmatic advertising software.
Vor Biopharma (VOR) $150M Health Care Goldman
Phase 1/2 biotech developing cell therapies for hematological diseases.
WeTrade Group (WETG) $121M Technology ---
Operates a membership-based platform for e-commerce services in China.
CC Neuberger Holdings III (PRPC.U) $350M SPAC Citi
Third blank check company formed by CC Capital and Neuberger Berman.
Kernel Group (KRNLU) $250M SPAC Citi
Blank check company targeting technology infrastructure sectors.
MDH Acquisition (MDH.U) $200M SPAC Stifel
Blank check company formed by McLarty Diversified Holdings targeting businesses in the Heartland.
Clarim Acquisition (CLRMU) $250M SPAC Jefferies
Blank check company targeting consumer-facing e-commerce.
EQ Health Acquisition (EQHA.U) $160M SPAC Jefferies
Blank check company formed by EQ Capital Strategies and FS Investments targeting healthcare services.
First High-School Group (FHS) $100M Consumer Discretionary Benchmark
Operates private high schools and provides tutoring services in China.
Landos Biopharma (LABP) $100M Health Care JP Morgan
Phase 2 biotech developing oral small molecule therapies for autoimmune diseases.
Novus Capital Corp II (NXU.U) $250M SPAC Cowen
Blank check company targeting businesses enabling smart technology evolution.
Pivotal Investment III (PICC.U) $200M SPAC Cantor Fitz.
Third blank check company led by veteran dealmaker Jonathan Ledecky targeting a high-growth business.
Progress Acquisition (PGRWU) $125M SPAC EarlyBird
Blank check company targeting media, entertainment, and technology.
Sana Biotechnology (SANA) $150M Health Care Morgan Stanley
Preclinical biotech developing engineered cell therapies for multiple indications.
Z-Work Acquisition (ZWRKU) $200M SPAC Jefferies
Blank check company targeting work technology businesses.
BlueRiver Acquisition (BRAQ.RC) $250M SPAC Goldman
Blank check company target the TMT and entertainment industries.
Mason Industrial Tech (MIT.U) $400M SPAC Citi
Blank check company formed by Mason Capital targeting advanced industrials.
Noble Rock Acquisition (NRACU) $200M SPAC Stifel
Blank check company formed by Noble Rock Advisors targeting the software and tech-enabled services sectors.
Roth CH Acquisition III (ROCRU) $100M SPAC Roth Cap.
Third blank check company formed by executives at Roth Capital and Craig-Hallum.
TLG Acquisition One (TLGA.U) $300M SPAC RBC
Blank check company formed by The Lawrie Group.
Astrea Acquisition (ASAXU) $150M SPAC EarlyBird
Blank check company targeting the hospitality and financial services sectors.
Churchill Capital Corp VI (CCVI.U) $400M SPAC JP Morgan
Sixth blank check company founded by dealmaker and former Citi executive Michael Klein.
Churchill Capital VII (CVIIU.RC) $300M SPAC Citi
Seventh blank check company founded by dealmaker and former Citi executive Michael Klein.
HealthCor Catalio Acq. (HCAQU) $150M SPAC Jefferies
Blank check company formed by HealthCor Management and Catalio Capital Management targeting healthcare.
Ignyte Acquisition (IGNYU) $50M SPAC EarlyBird
Blank check company targeting the life sciences, biotechnology and healthcare sectors.
loanDepot (LDI) $1,500M Financials Goldman
Nonbank lender focused on mortgages and unsecured personal loans.


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IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/14/2021, the Renaissance IPO Index was up 7.9% year-to-date, while the S&P 500 was up 1.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Peloton Interactive (PTON). The Renaissance International IPO Index was up 1.6% year-to-date, while the ACWX was up 4.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.

The article US IPO Weekly Recap: Playtika and Affirm’s billion-dollar deals headline an 8 IPO week originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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