In another active week for the IPO market, eight companies completed offerings, with the largest and most anticipated IPO, Wish (WISH), putting on an underwhelming performance. Surprisingly, this came alongside the best performing IPO of 2020 as Wunong Net Technology (WNW) traded up over 1,450% in its first few days on the market. Returns for other IPOs were notably high, with the market remaining hot as government stimulus talks progress and investors remain optimistic.
Leading this week, bargain e-commerce giant Wish (WISH) priced at the high end of the range to raise $1.1 billion at a $17.1 billion market cap. The company provides an e-commerce platform that connects primarily China-based merchants with value-conscious customers mostly in Europe and North America. Wish had the worst first day listing of any unicorn to go public in 2020, dropping 17% in the first day of trading prior to a partial recovery to end the week at -2%.
Consumer lending platform Upstart Holdings (UPST) priced at the low end of its range to raise $240 million at a $1.8 billion market cap. Upstart has achieved strong growth and profitability in the year-to-date period, but depends heavily on partnerships for traffic and a majority of originations. It popped 47% on its first day and finished the week up 121%.
BioAtla (BCAB), a solid tumor biotech developing novel antibody therapies, priced its upsized IPO above the range to raise $189 million at a $612 million market cap. Its two lead antibody-drug conjugate candidates are currently in Phase 2 trials for multiple cancer indications, with interim data expected in 2021. BioAtla stock popped 72% on the first day with a total return of 94% by week end.
Research device developer 908 Devices (MASS) priced above its upwardly revised range to raise $130 million at a $585 million market cap. Led by founders who previously sold Ahura Scientific to ThermoFisher, the company has sold more than 1,200 handheld and desktop mass spectrometry devices to over 300 customers in 32 countries. 908 Devices popped 145% in its first day on Friday.
Midwest Holding (MDWT) priced at the low end of its range to raise $70 million at a $262 million market cap. The company develops and distributes insurance products through third-party IMOs. Midwest turned profitable on an EBITDA basis in the 9mo20, though it has limited operating history under its current business plan. The company struggled in initial trading, ending the week at -19%.
Phase 2 biotech Virios Therapeutics (VIRI) priced at the midpoint to raise $30 million at a $78 million market cap. The company is developing novel antiviral therapies for fibromyalgia and plans to enter a Phase 2b trial in the 1Q21, with topline data expected in the 1Q22. It finished the week up 4%.
Wunong Net Technology (WNW), which operates an online food retail store and franchise restaurants in China, priced at the midpoint to raise $30 million at a $125 million market cap. The company currently offers 352 products from a network of suppliers and plans to open franchise restaurants throughout China where customers can rent facilities to cook and serve food purchased from the company. Wunong is the best performing IPO of 2020, trading up 1,460% this week. This deal highlights investor enthusiasm and the momentum trading phenomenon that has been common with small float deals that are not institutionally covered. It remains to be seen whether the stock will keep its lofty valuation.
Chinese e-commerce platform, Oriental Culture Holding (OCG), raised $20 million at an $81 million market cap. The company operates an online trading marketplace for art in China. It saw a 50% pop on its first day of trading, ending the week up 50%.
12 SPACs raised $3.1 billion to lengthen the hot streak for the IPO alternative. The group was led by ION Investment Group’s technology-focused ScION Tech Growth I (SCOAU), which raised $500 million; Michael Klein’s Churchill Capital Corp V (CCV.U), which raised $450 million; and Corner Ventures’ Corner Growth Acquistion (COOLU), which raised $350 million.
| 20 IPOs During the Week of December 14th, 2020 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 12/18 |
| Wunong Net Technology (WNW) | $30M | $125M | 0% | +141% | +1460% |
| Operates an online food retail store and franchise restaurants in China. | |||||
| 908 Devices (MASS) | $130M | $585M | 25% | +145% | +145% |
| Provides mass spectrometry devices for forensic and scientific research. | |||||
| Upstart (UPST) | $240M | $1,780M | -5% | +47% | +120% |
| Operates an online consumer lending platform connecting banks and individuals. | |||||
| BioAtla (BCAB) | $189M | $612M | 13% | +72% | +94% |
| Phase 2 biotech developing selective antibody therapies for solid tumors. | |||||
| Oriental Culture Holding (OCG) | $20M | $81M | 0% | +50% | +50% |
| Operates an online marketplace for artists and collectors in China. | |||||
| Marquee Raine Acquisition (MRACU) | $325M | $406M | 0% | +6% | +5% |
| Blank check company formed by The Raine Group and the Chicago Cubs' owner targeting the TMT industry. | |||||
| INSU Acquisition III (IIIIU) | $218M | $299M | 0% | +4% | +4% |
| Third blank check company formed by Cohen & Company targeting the insurance industry. | |||||
| Virios Therapeutics (VIRI) | $30M | $78M | 0% | +67% | +4% |
| Phase 2 biotech developing novel antiviral therapies for fibromyalgia and other diseases. | |||||
| Churchill Capital Corp V (CCV.U) | $450M | $563M | 0% | +2% | +4% |
| Fifth blank check company founded by dealmaker and former Citi executive Michael Klein. | |||||
| MedTech Acquisition (MTACU) | $220M | $275M | 0% | +4% | +4% |
| Blank check company targeting a US medical technology business. | |||||
| Corner Growth Acquisition (COOLU) | $350M | $438M | 0% | +4% | +4% |
| Blank check company formed by Corner Ventures targeting tech in the US and developed countries. | |||||
| Golden Falcon Acquisition (GFX.U) | $300M | $375M | 0% | +3% | +3% |
| Blank check company targeting TMT and fintech in Europe, North America, and the Middle East. | |||||
| Blue Water Acquisition (BLUWU) | $50M | $63M | 0% | +2% | +3% |
| Blank check company formed by an industry veteran targeting a healthcare business. | |||||
| Americas Technology Acq. (ATA.U) | $100M | $126M | 0% | +2% | +2% |
| Blank check company targeting the technology, media, and telecommunications sectors. | |||||
| ScION Tech Growth I (SCOAU) | $500M | $625M | 0% | +1% | +2% |
| UK blank check company formed by ION Investment Group targeting technology. | |||||
| Seven Oaks Acquisition (SVOKU) | $225M | $281M | 0% | +2% | +2% |
| Blank check company focusing on businesses with good ESG practices. | |||||
| Dune Acquisition (DUNEU) | $150M | $188M | 0% | +1% | +1% |
| Blank check company led by executives from delta2 Capital targeting a SaaS business. | |||||
| KINS Technology Group (KINZ.U) | $240M | $300M | 0% | n/a | +0% |
| Blank check company formed by tech veteran Khurram Sheikh targeting the tech industry. | |||||
| Wish (WISH) | $1,104M | $17,142M | 4% | -16% | -2% |
| Provides an e-commerce platform for ultra-bargain unbranded merchandise. | |||||
| Midwest Holding (MDWT) | $70M | $262M | -3% | -20% | -19% |
| Underwrites and markets annuities in the US. | |||||
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Three IPOs and eight SPACs submitted initial filings. Fashion e-commerce site Poshmark (POSH) and mobile game developer Playtika (PLTK) both filed to raise $100 million, and Chinese classical music platform Kuke Music Holding (KUKE) filed to raise $50 million. The group of SPACs filed to raise an aggregate of $1.6 billion and is led by Epiphany Technology Acquisition (EPHYU), which plans to raise $350 million; KL Acquisition (KLAQU), which plans to raise $250 million; and Poema Global Holding (PPGHU), which also plans to raise $250 million.
| 11 Filings During the Week of December 14th, 2020 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Kuke Music (KUKE) | $50M | Technology | Deutsche Bank |
| Provides classical music licensing, subscription, and education services in China. | |||
| LightJump Acquisition (LJAQU) | $100M | SPAC | EarlyBird |
| Blank check company formed by LightJump Capital targeting the tech sector. | |||
| Playtika (PLTK) | $100M | Technology | Morgan Stanley |
| Leading developer of casino and other mobile games. | |||
| Poema Global Holdings (PPGHU) | $250M | SPAC | Citi |
| Blank check company targeting technology businesses in Europe and Asia. | |||
| Altimeter Growth Corp. 2 (AGCB) | $200M | SPAC | Citi |
| Second blank check company formed by Altimeter Capital targeting the tech sector. | |||
| Hamilton Lane Alliance I (HLAHU) | $200M | SPAC | JP Morgan |
| Blank check company formed by Hamilton Lane. | |||
| KL Acquisition (KLAQU) | $250M | SPAC | Goldman |
| Blank check company formed by Kennedy Lewis targeting the healthcare industry. | |||
| Poshmark (POSH) | $100M | Technology | Morgan Stanley |
| Peer-to-peer fashion e-commerce site. | |||
| Epiphany Tech Acquisition (EPHYU) | $350M | SPAC | Cantor Fitz. |
| Blank check company targeting the technology industry. | |||
| KludeIn I Acquisition (INKAU) | $150M | SPAC | BTIG |
| Blank check company targeting software or technology-enabled growth businesses. | |||
| Vickers Vantage I (VCKAU) | $100M | SPAC | Maxim |
| Blank check company formed by Vickers Venture Partners. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/17/20, the Renaissance IPO Index was up 114.1% year-to-date, while the S&P 500 was up 17.3%. 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 51.3% year-to-date, while the ACWX was up 11.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
