10 IPOs entered the public market this past week headlined by Airbnb (ABNB) and DoorDash (DASH), which completed the largest and second-largest IPOs of 2020, respectively. They were joined by 20 blank check IPOs in the busiest week for SPACs ever. New filing activity continued to pump the brakes, with just two IPOs and four SPACs submitting initial filings.
In the largest IPO of the year, Airbnb (ABNB) priced above the upwardly revised range to raise $3.5 billion at a $46.4 billion market cap. The company is a clear leader in the short-term rental space, and thanks to its asset-light model and global network, it has been the fastest hospitality company to rebound from COVID-19. While unprofitable, the company has posted positive free cash flow since 2016. Airbnb soared 113% on its first day, the best pop for a billion-dollar IPO ever, and finished up 105%.
DoorDash (DASH) priced above the upwardly revised range to raise $3.4 billion at a $38.3 billion market cap. With a 50% share of the US market, DoorDash is North America’s largest delivery service. The company saw explosive growth in the 9mo20 due to COVID-19 and turned profitable on an EBITDA basis. DoorDash popped 86% on its first day and finished the week up 71%.
Biosimulation software company Certara (CERT) upsized and priced above the range to raise $668 million at a $3.5 billion market cap. The company operates in the large and growing drug discovery and development industries, serving over 1,600 biopharmas and academic institutions with a 90%+ renewal rate. Insiders sold 50% of the shares in the offering. Certara finished up 66%.
Enterprise AI software maker C3.ai (AI) priced well above the upwardly revised range to raise $651 million at a $5.6 billion market cap. C3 was founded and is led by Siebel Systems and Oracle alum Tom Siebel, and it is targeting a multibillion-dollar market opportunity. The company is unprofitable, and revenue is highly concentrated. C3 finished up 185%.
Drug discovery platform AbCellera Biologics (ABCL) upsized and priced above the range to raise $483 million at a $6.4 billion market cap. While unprofitable, the company has strong sales momentum with 34 new programs in the 9mo20, and it has a potentially lucrative partnership with Eli Lilly. AbCellera finished up 195%.
Gene therapy biotech 4D Molecular Therapeutics (FDMT) further upsized and priced above the upwardly revised range to raise $193 million at a $625 million market cap. The company is developing targeted and evolved AAV vectors, a novel area of study, and it currently has three candidates in Phase 1 or 1/2 trials. 4D finished up 76%.
Hydroponics supplier Hydrofarm Holdings Group (HYFM) priced above the upwardly revised range to raise $173 million at a $711 million market cap. A picks-and-shovel cannabis play, it relies on the highly regulated industry for most of its sales. Unprofitable, the company saw growth accelerate in the MRQ, and margins have improved due to increased propriety product offerings. Hydrofarm finished up 142%.
AdTech platform PubMatic (PUBM) priced above the range to raise $118 million at a $1.1 billion market cap. Profitable with strong growth, the company provides a specialized cloud infrastructure platform that enables real-time programmatic advertising transactions. It has a sticky customer base, though its largest customer was 20%+ of its 9mo20 revenue. PubMatic finished up 25%.
French-listed drug developer Nanobiotix (NBTX) upsized and priced at the low end to raise $99 million at a $502 million market cap. The company’s lead candidate completed the regulatory process for CE mark in April 2019, allowing the product to be commercialized in the EU for locally advanced soft tissue sarcoma. Nanobiotix finished up 26%.
Sleep apnea medical device maker Vivos Therapeutics (VVOS) upsized and priced at the midpoint to raise $21 million at a $110 million market cap. Unprofitable with explosive growth, the company’s patented oral appliances have proven effective in over 15,000 patients treated worldwide. Vivos finished up 50%.
20 SPACs raised $4.8 billion in the busiest week ever for the IPO alternative. The group was led by Motive Partners’ fintech-focused Motive Capital (MOTV.U), Periphas Capital’s Periphas Capital Partnering (PCPC.U), and UnitedHealth founder’s Senior Connect Acquisition I (SNRHU), all of which raised $360 million.
| 30 IPOs During the Week of December 7th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 12/11 |
| AbCellera (ABCL) | $483M | $6,372M | 29% | +195% | +195% |
| Provides an AI powered drug discovery platform for antibody therapies. | |||||
| C3.ai (AI) | $651M | $5,586M | 29% | +120% | +185% |
| Provides a SaaS platform for deploying enterprise AI applications. | |||||
| Hydrofarm Holdings (HYFM) | $173M | $711M | 33% | +160% | +142% |
| Sells hydroponics and specialty indoor gardening supplies. | |||||
| Airbnb (ABNB) | $3,490M | $46,379M | 45% | +113% | +105% |
| Provides a platform for booking short-term stays from a global network of locals. | |||||
| 4D Molecular Therapeutics (FDMT) | $193M | $625M | 10% | +76% | +76% |
| Phase 1/2 gene therapy biotech developing novel AAVs for ophthalmic diseases. | |||||
| DoorDash (DASH) | $3,366M | $38,265M | 28% | +86% | +72% |
| North America's largest online restaurant delivery service. | |||||
| Certara (CERT) | $668M | $3,513M | 12% | +66% | +66% |
| Provides biosimulation software and services used for drug development. | |||||
| Vivos Therapeutics (VVOS) | $21M | $110M | 0% | +50% | +50% |
| Commercializing non-invasive medical devices for sleep disordered breathing. | |||||
| Nanobiotix (NBTX) | $99M | $502M | -8% | +26% | +26% |
| Late-stage French developer of nanoparticle drugs that improve cancer radiotherapy. | |||||
| PubMatic (PUBM) | $118M | $1,125M | 18% | +47% | +25% |
| Provides a platform that automates digital ad sales for online publishers. | |||||
| HumanCo Acquisition (HMCOU) | $250M | $340M | 0% | +8% | +11% |
| Blank check company targeting the US health and wellness industry. | |||||
| Nebula Caravel Acq. (NEBCU) | $250M | $313M | 0% | +3% | +6% |
| Third blank check company formed by True Wind Capital targeting the tech sector. | |||||
| DD3 Acquisition II (DDMXU) | $110M | $141M | 0% | +3% | +5% |
| Second blank check company formed by DD3 Capital Partners. | |||||
| Gores Holdings VI (GHVIU) | $300M | $375M | 0% | +5% | +5% |
| Sixth blank check company formed by The Gores Group. | |||||
| RMG Acquisition II (RMGBU) | $300M | $375M | 0% | +3% | +4% |
| Second blank check company formed by Riverside's James Carpenter and former Carlyle executive Robert Mancini. | |||||
| Thayer Ventures Acq. (TVACU) | $150M | $188M | 0% | +4% | +4% |
| Blank check company formed by Thayer Ventures targeting the travel and transportation industries. | |||||
| Periphas Cap. Partnering (PCPC.U) | $360M | $388M | 0% | +2% | +3% |
| Blank check company formed by Periphas Capital. | |||||
| CBRE Acquisition Holdings (CBAH.U) | $350M | $368M | 0% | +3% | +3% |
| Blank check company formed by CBRE targeting growth companies. | |||||
| Senior Connect Acq. I (SNRHU) | $360M | $450M | 0% | +3% | +3% |
| Blank check company formed by the founder of UnitedHealth targeting the senior market. | |||||
| Frazier Lifesciences Acq. (FLACU) | $120M | $155M | 0% | +3% | +3% |
| Blank check company formed by Frazier Healthcare Partners targeting the biotech industry. | |||||
| Revolution Accel. Acq. (RAACU) | $250M | $333M | 0% | +4% | +3% |
| Blank check company focusing on technology, government policy, and regulation. | |||||
| Altitude Acquisition (ALTUU) | $261M | $326M | 0% | +2% | +3% |
| Blank check company targeting the travel industry. | |||||
| Motive Capital (MOTV.U) | $360M | $450M | 0% | +3% | +3% |
| Blank check company formed by Motive Partners targeting the fintech sector. | |||||
| Roth CH Acquisition II (ROCCU) | $100M | $128M | 0% | +2% | +2% |
| Second blank check company formed by executives at Roth Capital and Craig-Hallum. | |||||
| Carney Tech Acq. II (CTAQU) | $350M | $447M | 0% | +2% | +2% |
| Blank check company led by the former CEO of Brocade Communications targeting the technology industry. | |||||
| Globis Acquisition (GLAQU) | $100M | $131M | 0% | +2% | +2% |
| Blank check company formed by Globis Capital Advisors and Chardan targeting economic globalization. | |||||
| Concord Acquisition (CND.U) | $240M | $307M | 0% | +1% | +1% |
| Blank check company formed by Atlas Merchant Capital targeting financial services and FinTech. | |||||
| Mudrick Capital Acq. II (MUDSU) | $275M | $344M | 0% | +1% | +1% |
| Second blank check company formed by distressed debt investor Jason Mudrick to acquire a post-bankruptcy business. | |||||
| Delwinds Insurance Acq. (DWIN.U) | $175M | $225M | 0% | +1% | +1% |
| Blank check company formed by The Gray Insurance Company targeting the insurance industry. | |||||
| EdtechX Holdings Acq. II (EDTXU) | $100M | $125M | 0% | +1% | +1% |
| Second blank check company formed by IBIS Capital to acquire an education technology business. | |||||
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Two IPOs and four SPACs submitted initial filings. Chinese CRM platform Infobird (BIRD) filed to raise $25 million and renewable energy firm Montauk Renewables (MNTK) filed to raise $20 million. Cantor Fitzgerald’s fourth SPAC CF Acquisition IV (CFIVU) filed to raise $400 million, 7GC and Hennessy Capital’s 7GC & Co. Holdings (VIIU) filed to raise $175 million, life science SPAC Big Cypress Acquisition (BCYPU) filed to raise $75 million, and healthcare SPAC FoxWayne Enterprises Acquisition (FOXWU) filed to raise $50 million.
| 6 Filings During the Week of December 7th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Montauk Renewables (MNTK) | $20M | Energy | Roth Cap. |
| Produces and sells renewable natural gas and electricity. | |||
| FoxWayne Enterprises Acq. (FOXWU) | $50M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting biotechnology and telemedicine in North America. | |||
| Infobird (BIRD) | $25M | Technology | ViewTrade |
| Provides a SaaS customer engagement platform in China. | |||
| 7GC & Co. (VIIU) | $175M | SPAC | Cantor Fitz. |
| Blank check company formed by 7GC and Hennessy Capital targeting a tech business. | |||
| Big Cypress Acquisition (BCYPU) | $75M | SPAC | Ladenburg |
| Blank check company targeting life science businesses in the US and Israel. | |||
| CF Acquisition IV (CFIVU) | $400M | SPAC | Cantor Fitz. |
| Fourth blank check company formed by Cantor Fitzgerald. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/10/20, the Renaissance IPO Index was up 115.3% year-to-date, while the S&P 500 was up 13.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Moderna (MRNA) and Uber (UBER). The Renaissance International IPO Index was up 41.1% year-to-date, while the ACWX was up 8.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
