TUYA

US IPO Weekly Recap: The IPO market heats up in an 11 IPO week

The IPO market stayed busy this past week, with 11 IPOs raising $3.0 billion. The week’s IPOs were joined by 24 SPACs that raised $8.4 billion. New filers continued to fill the IPO pipeline, with 8 IPOs and 46 SPACs submitting initial filings.

Chinese IoT platform developer Tuya (TUYA) priced above the range to raise $915 million at an $11.8 billion market cap. Tuya offers a PaaS and SaaS to business and developers to develop, manage, and monetize software-enabled devices and services. Fast growing but unprofitable, the company saw its IoT PaaS revenue nearly double in the FY20. Tuya finished up 20%. 

Restaurant SaaS platform Olo (OLO) priced above the upwardly revised range to raise $450 million at a $4.6 billion market cap. Olo provides order management software to large chain restaurants to manage orders, process payments, and facilitate delivery. Olo is profitable, and it has many multi-year enterprise-wide agreements with more opportunities for expansion. Olo finished up 19%. 

Cancer biotech Instil Bio (TIL) priced at the high end to raise $320 million at a $2.8 billion market cap. This clinical stage biopharmaceutical company is developing autologous tumor infiltrating lymphocytes (TIL) for cell therapies in the treatment of cancer. The company expected to initiate a Phase 2 trial of its lead TIL candidate for the treatment of melanoma in the 2H21. Instil Bio finished up 32%.

Natural gas E&P Vine Energy (VEI) offered more shares but priced below the range to raise $301 million at a $1.0 billion market cap. This Blackstone-backed E&P company has a net acreage of 125,000 in the Haynesville Basin of Northwest Louisiana. Despite maintaining positive earnings and free cash flow in 2020, growth is expected to slow in 2021. Vine Energy finished flat.

Luxury wine producer The Duckhorn Portfolio (NAPA) priced at the midpoint to raise $300 million at a $1.8 billion market cap. Duckhorn is a pure play producer of luxury wines with a portfolio of ten brands that is sells through wholesale distributors and retailers, as well as direct to consumer. Despite fluctuations in costs based on harvest yields, the company has maintained strong EBITDA margins. Duckhorn finished up 27%.

Low-cost airline Sun Country Airlines (SNCY) priced above the range to raise $218 million at a $1.5 billion market cap. This airline offers low cost flights to primarily leisure markets and family customers, but also offers charter flights to customers such as casino operators, the US DoD, and college sports teams. With positive EBITDA margins throughout 2020, the company has secured an Amazon contract that provides high-margin revenue. Sun Country finished up 42%.

Chinese inflammatory disease biotech Connect Biopharma (CNTB) upsized and priced at the high end to raise $191 million at a $949 million market cap. This Phase 2 biotech is developing therapies for the treatment of T cell-driven inflammatory diseases. Its lead candidate is currently in a Phase 2b trial for atopic dermatitis, with top-line results expected in the 2H21. Connect Biopharma finished up 9%.

Microbiome therapy biotech Finch Therapeutics Group (FNCH) upsized and priced at the high end to raise $128 million at an $819 million market cap. Finch is developing orally administered therapeutics to correct dysbiosis and the diseases that emerge from it. Its lead candidate is being developed to treat Clostridioides difficile infection and reported positive topline data from its first pivotal trial. Finch Therapeutics finished up 25%. 

Cannabis finance REIT AFC Gamma (AFCG) raised $119 million at a $240 million market cap. This commercial mortgage REIT is focused on providing financing within the cannabis industry. It plans to issue regular quarterly distributions of all or substantially all of its REIT taxable income. AFC Gamma finished up 21%.

Lysosomal storage disorder biotech Gain Therapeutics (GANX) priced at the midpoint to raise $40 million at a $129 million market cap. This preclinical biotech is developing small molecule therapies for the treatment of protein misfolding diseases, starting with lysosomal storage disorders. Gain Therapeutics expects to begin preparing IND submissions in 2021. Gain Therapeutics finished up 11%.

Chinese home goods seller Jowell Global (JWEL) raised $26 million at a $174 million market cap. This direct sales company offers cosmetics, health and nutritional supplements, and household products from its own brand, as well as from third party sellers. Jowell Global is fast-growing and profitable, and finished up 5%.

24 blank check companies raised $8.4 billion this past week. The group was led by KKR and former Gap CEO Glenn Murphy’s SPAC KKR Acquisition I (KAHC.U), which raised $1.2 billion.

35 IPOs During the Week of March 15th, 2021
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 03/19
Sun Country Airlines (SNCY) $218M $1,527M 9% +52% +42%
American ultra-low-cost passenger and cargo airline.
Instil Bio (TIL) $320M $2,833M 11% +32% +32%
Early stage biotech developing immune cell therapies for cancer.
Duckhorn (NAPA) $300M $1,751M 0% +15% +27%
Produces and distributes luxury wine in North America.
Finch Therapeutics (FNCH) $128M $819M 6% +25% +25%
Phase 3-ready biotech developing microbiome therapeutics.
AFC Gamma (AFCG) $119M $240M 6% +21% +21%
Newly-formed commercial mortgage REIT focused on the cannabis industry.
Tuya (TUYA) $915M $11,755M 14% +19% +20%
Provides a consumer interface platform for IoT device makers in China.
Olo (OLO) $450M $4,562M 47% +39% +19%
Provides a SaaS platform to restaurants for online ordering and delivery.
Gain Therapeutics (GANX) $40M $129M 0% +2% +11%
Preclinical biotech developing small molecule therapies for lysosomal storage disorders.
Connect Biopharma (CNTB) $191M $949M 6% +9% +9%
Chinese Phase 2 biotech developing therapies for T cell-driven inflammatory diseases.
Jowell Global (JWEL) $26M $174M 0% +24% +5%
Chinese direct sales company offering beauty and home goods under the Longrich brand.
Research Alliance II (RACB) $130M $167M 0% +2% +2%
Second blank check company formed by RA Capital targeting the biotech industry.
LDH Growth I (LDHAU) $200M $250M 0% +2% +2%
Second blank check company formed by SoftBank targeting technology-enabled sectors.
Reinvent Tech Partners Y (RTPYU) $850M $1,063M 0% +1% +2%
Third blank check company formed by Reid Hoffman and Mark Pincus targeting the tech sector.
Waldencast Acquisition (WALDU) $300M $375M 0% +1% +2%
Blank check company formed by Waldencast Ventures and the former CFO of Anheuser-Busch InBev.
Revolution Healthcare Acq (REVHU) $500M $525M 0% +1% +1%
Blank check company formed by General Catalyst and ARCH Venture Partners.
Longview Acquisition II (LGV.U) $600M $750M 0% +0% +0%
Second blank check company formed by executives at healthcare-focused hedge fund Glenview Capital.
European Biotech Acq. (EBACU) $120M $155M 0% +0% +0%
Blank check company formed by LSP targeting the life sciences industry in Europe.
Vine Energy (VEI) $301M $1,008M -20% -4% +0%
Blackstone-backed natural gas E&P operating in Louisiana's Haynesville Basin.
Levere Holdings (LVRAU) $250M $313M 0% +0% +0%
Blank check company formed by Goggo Network and auto-tech execs targeting the EMEA mobility sector.
Accelerate Acquisition (AAQCU) $400M $500M 0% n/a +0%
Blank check company led by Bob Nardelli targeting industrial, transportation, and consumer businesses.
KKR Acquisition I (KAHC.U) $1,200M $1,500M 0% +0% +0%
Blank check company formed by KKR and former Gap CEO Glenn Murphy targeting the consumer sector.
Fortress Value Acq. IV (FVIV.U) $600M $750M 0% +0% +0%
Fifth blank check company formed by executives at Fortress Investment Group.
Build Acquisition (BGSX.U) $200M $250M 0% +0% +0%
Blank check company formed by BuildGroup targeting software and tech-enabled services.
FAST Acquisition II (FZT.U) $200M $250M 0% +0% +0%
Third blank check company formed by &vest targeting dining and hospitality.
American Acquisition Opp. (AMAOU) $100M $126M 0% +0% +0%
Blank check company formed by the founders of Land Betterment Corp targeting land and resource holding companies.
BYTE Acquisition (BYTSU) $300M $385M 0% -1% -1%
Blank check company targeting the Israeli technology industry.
Forum Merger IV (FMIVU) $300M $384M 0% +0% -1%
Fourth blank check company formed by SPAC veterans David Boris and Marshall Kiev.
Golden Arrow Merger (GAMCU) $250M $313M 0% +0% -1%
Blank check company targeting healthcare and healthcare-related infrastructure.
Athena Technology Acq. (ATHN.U) $250M $343M 0% -1% -1%
Blank check company targeting technology, direct to consumer, and fintech.
Glenfarne Merger (GGMCU) $250M $320M 0% -1% -1%
Blank check company formed by Glenfarne Group targeting energy transition and electrification.
Tech & Energy Transition (TETCU) $385M $481M 0% +0% -1%
Blank check company backed by Macquarie targeting differentiated tech.
GX Acquisition II (GXIIU) $300M $375M 0% -1% -1%
Second blank check company led by the Managing Partners of Trimaran Capital Partners.
Kadem Sustainable Impact (KSICU) $175M $219M 0% -1% -1%
Blank check company targeting electric vehicles, energy storage and distribution, and mobility technology.
AF Acquisition (AFAQU) $200M $250M 0% -2% -2%
Blank check company targeting the food and beverage, wellness, beauty, pet, and personal care sectors.
Plum Acquisition I (PLMIU) $300M $375M 0% +0% -2%
Blank check company formed by former VEON and Xerox CEO.


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8 IPOs submitted initial filings this past week. Digital advertising platform DoubleVerify (DV) filed to raise $500 million. Senior-focused healthcare platform agilon health (AGL), specialty insurer Fortegra (FRF), Swiss Phase 3 biotech VectivBio Holding (VECT), rare disease biotech Reneo Pharmaceuticals (RPHM), and cybersecurity training platform KnowBe4 (KNBE) all filed to raise $100 million. Food safety product developer Save Foods (SVFD) filed to raise $15 million. Online betting SaaS provider Golden Matrix Group (GMGI) filed to raise $10 million. 

45 SPACs submitted initial filings led by Michael Klein and Sam Altman’s SPAC AltC Acquisition (ALCC.U), which filed to raise $1 billion, and True Wind Capital’s sixth SPAC Brigantine Acquisition (BVAU.RC), which filed to raise $600 million.

53 Filings During the Week of March 15th, 2021
Issuer
Business
Deal
Size
Sector Lead
Underwriter
Anthropos Capital (HUMCU) $250M SPAC Credit Suisse
Blank check company targeting a business delivering human capital as a service or product.
Arena Fortify Acquisition (AFACU) $200M SPAC Cowen
Blank check company formed by Arena Investors targeting post-restructured or restructuring businesses.
Chain Bridge I (CBRGU) $300M SPAC Cowen
Blank check company targeting technology that could translate to the national security arena.
Coliseum Acquisition (MITAU) $150M SPAC Stifel
Blank check company targeting consumer product, service, and media companies.
Colombier Acquisition (CLBR.U) $150M SPAC B. Riley FBR
Blank check company targeting the consumer products, social, and entertainment sectors.
Golden Matrix Group (GMGI) $10M Consumer Discretionary Kingswood Cap. Mkts.
Provides enterprise SaaS solutions for online casino and sports betting operators.
IET Acquisition (ETA.U) $150M SPAC Stifel
Blank check company backed by Aureus LNG and Meteora Capital targeting energy transition and sustainability.
KnowBe4 (KNBE) $100M Technology Morgan Stanley
Provides enterprises with an employee cybersecurity training platform.
Lionheart III (LHRTU) $100M SPAC Nomura
Third blank check company formed by Lionheart Capital.
Lionheart IV (LHIVU) $250M SPAC Nomura
Fourth blank check company formed by Lionheart Capital.
ONS Acquisition (ONS.U) $200M SPAC Ladenburg
Blank check company targeting industries that can benefit from strong ESG practices.
Patria Acquisition (PATU.RC) $250M SPAC JP Morgan
Blank check company formed by Patria targeting Latin American businesses.
Reneo Pharmaceuticals (RPHM) $100M Health Care Jefferies
Phase 2 biotech developing therapies for rare genetic mitochondrial diseases.
Spindletop Health Acq. (SHCAU) $200M SPAC Barclays
Blank check company targeting the US healthcare industry.
TCV Acquisition (TCVA) $350M SPAC Citi
Blank check company formed by Technology Crossover Ventures targeting tech.
Think Elevation Capital (TEGAU) $225M SPAC Morgan Stanley
Blank check company backed by Think Investments and Elevation Capital targeting tech in India.
VectivBio Holding (VECT) $100M Health Care BofA
Swiss Phase 3 biotech developing therapies for rare gastrointestinal disorders.
agilon health (AGL) $100M Health Care JP Morgan
Provides a senior-focused value-based care platform for primary care physicians.
CAVU Technology Acq. (CAVUU) $100M SPAC Maxim
Blank check company formed by the co-founders of CAVU Capital targeting tech.
CHW Acquisition (CHWAU) $100M SPAC Chardan
Blank check company targeting consumer products and retail.
DILA Capital Acquisition (DILAU) $50M SPAC EarlyBird
Blank check company formed by DILA Capital targeting tech-enabled sectors in Latin America.
Good Works II Acquisition (GWIIU) $200M SPAC I-Bankers
Blank check company targeting high-growth businesses.
Healthcare Merger II (HCXXU) $300M SPAC Cantor Fitz.
Blank check company led by Steven Shulman and William Sanger targeting the healthcare industry.
Keter1 Acquisition (KETAU) $250M SPAC Citi
Blank check company targeting technology companies in Israel.
Quiet Plus I Acquisition (QPAAU) $250M SPAC Credit Suisse
Blank check company formed by Quiet Capital targeting the tech sector.
Red Cell DRM Acquisition (RCDAU) $250M SPAC Credit Suisse
Blank check company targeting the defense, resiliency, and mobility industries.
Stellaris Growth Acq. (STLRU) $128M SPAC Kingswood Cap. Mkts.
Blank check company focusing on the data centers and internet technology sectors.
Acropolis Inf. Acq. (ACRO.U) $400M SPAC Credit Suisse
Blank check company formed by Apollo targeting infrastructure and infrastructure services in North America.
DoubleVerify (DV) $500M Technology Goldman
Offers a software platform that provides analytics for digital advertising.
Falcon Capital Acq. II (FTWOU.RC) $400M SPAC Goldman
Blank check company formed by Ariliam Group targeting a media business.
Fifth Wall Acquisition II (FWAB) $150M SPAC Deutsche Bank
Second blank check company formed by Fifth Wall targeting real estate technology.
ICG Hypersonic Acq. (ICGA.U) $250M SPAC Barclays
Blank check company formed by Island Capital Group targeting real estate technology.
EIP Acquisition I (EIPA.U) $300M SPAC JP Morgan
Blank check company formed by Energy Impact Partners targeting the energy transition space.
Newcourt Acquisition (NCACU) $200M SPAC Barclays
Blank check company targeting digital financial services and fintech businesses.
Reverence Acquisition (RCPIU) $300M SPAC Goldman
Blank check company formed by Reverence Capital Partners targeting fintech and financial services.
Save Foods (SVFD) $15M Materials ThinkEquity
Develops products to improve the food safety and shelf life of fresh produce.
Skydeck Acquisition (SKYAU) $250M SPAC JP Morgan
Blank check company targeting the media, technology, communications, and digital health sectors.
AltC Acquisition (ALCC.U) $1,000M SPAC Citi
Blank check company formed by Michael Klein and OpenAI co-founder Sam Altman.
BharCap Acquisition (BCAU.RC) $250M SPAC JP Morgan
Blank check company formed by BharCap Partners targeting financial services and fintech.
Brand Velocity Acq. (BVAU.RC) $200M SPAC Credit Suisse
Blank check company formed by Brand Velocity Partners targeting consumer-facing businesses in North America.
Brigantine Acquisition (BRIGU) $600M SPAC Morgan Stanley
Sixth blank check company formed by True Wind Capital targeting the tech sector.
Cerberus Telecom II (CTII.U) $500M SPAC Deutsche Bank
Second blank check company formed by Cerberus Capital Management targeting the ICT industry.
DD3 Acquisition III (DIIIU) $150M SPAC Morgan Stanley
Third blank check company formed by DD3 Capital Partners.
Decarbonization Plus IV (DCRDU) $350M SPAC Credit Suisse
Blank check company formed by Riverstone targeting businesses advancing global decarbonization.
FirstMark Acquisition III (FIIIU.RC) $400M SPAC Credit Suisse
Third blank check company formed by FirstMark Capital targeting technology.
Fortegra (FRF) $100M Financials BofA
Specialty insurer focused on niche business lines and fee-oriented services.
H.I.G. Acquisition II (HIGBU) $300M SPAC Jefferies
Second blank check company formed by H.I.G. Capital targeting TMT or healthcare.
Leo Holdings V (LHVU.RC) $250M SPAC Deutsche Bank
Fifth blank check company formed by Lion Capital executives targeting consumer businesses.
Mistico Acquisition (TWCMU) $400M SPAC Morgan Stanley
Seventh blank check company formed by True Wind Capital targeting the tech sector.
Osprey Technology II (OTII.U) $325M SPAC Credit Suisse
Third blank check company led by Edward and Jonathan Cohen targeting the tech industry.
Transformational CPG Acq. (TCPGU) $300M SPAC JP Morgan
Blank check company formed by CPG veterans targeting the consumer sector.
Vector Acquisition III (VCCC.RC) $250M SPAC ---
Third blank check company formed by Vector Capital targeting the tech industry.
Vector Acquisition IV (VAIV.RC) $350M SPAC ---
Fourth blank check company formed by Vector Capital targeting the tech industry.


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IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/18/2021, the Renaissance IPO Index was down 3.1% year-to-date, while the S&P 500 was up 4.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video Communications (ZM). The Renaissance International IPO Index was down 0.8% year-to-date, while the ACWX was up 4.6%. 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: The IPO market heats up in an 11 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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