In a staggering start to 2021, two biotechs and 28 SPACs raised over $7.1 billion in the first week of the new year. Activity should remain high as new filings continued to flood the IPO pipeline.
Chinese cancer biotech Gracell Biotechnologies (GRCL) priced above the range to raise $209 million at a $1.3 billion market cap. Gracell is developing CAR-T cell therapies for hematologic malignancies on its FasTCAR and TruUCAR platforms. Its FasTCAR candidate is currently in a Phase 1 trial for multiple myeloma, with data expected in the 2H21. Its TruUCAR candidate is currently in a Phase 1 trial for lymphoblastic leukemia, with data expected in 2022. Gracell finished up 32%.
Oncology biotech Cullinan Management (CGEM) further upsized and priced above the upwardly revised range to raise $250 million at a $953 million market cap. This biotech is developing a portfolio of therapies for a range of oncology targets. Cullinan Management’s lead candidate is currently in a Phase 1/2a trials for heavily pretreated non-small cell lung cancer and has shown some partial responses. Cullinan finished up 42%.
A record 28 blank check companies raised $6.7 billion this past week. In 2020, it took five months for the same number of SPACs to come to market. The group was led by SoftBank’s SVF Investment Corporation (SVFAU), which raised $525 million to acquire a business in a technology-enabled sector, with an emphasis on artificial intelligence.
| 30 IPOs During the Week of January 4th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 01/08 |
| Cullinan Management (CGEM) | $250M | $953M | 17% | +42% | +42% |
| Phase 1/2a biotech developing and investing in oncology therapies. | |||||
| Gracell Biotechnologies (GRCL) | $209M | $1,271M | 12% | +32% | +32% |
| Phase 1 Chinese biotech developing CAR-T cell therapies for cancer. | |||||
| Altimeter Growth Corp. 2 (AGCB) | $400M | $510M | 0% | +33% | +27% |
| Second blank check company formed by Altimeter Capital targeting the tech sector. | |||||
| SVF Investment Corp. (SVFAU) | $525M | $656M | 0% | +20% | +20% |
| Blank check company formed by SoftBank targeting artificial intelligence. | |||||
| Switchback II Corp. (SWBK.U) | $275M | $344M | 0% | +19% | +19% |
| Second blank check company formed by NGP and former RSP Permian executives targeting energy technology. | |||||
| Ivanhoe Capital Acq. (IVAN.U) | $240M | $300M | 0% | +12% | +17% |
| Singapore-based blank check company formed by the founder of Ivanhoe Capital targeting the energy transition space. | |||||
| Star Peak Corp. II (STPC.U) | $350M | $438M | 0% | +12% | +14% |
| Second blank check company formed by Magnetar Capital targeting the sustainability sector. | |||||
| VectoIQ Acquisition II (VTIQU) | $300M | $384M | 0% | +11% | +12% |
| Second blank check company led by former GM execs targeting the smart transportation industry. | |||||
| Crucible Acquisition (CRU.U) | $225M | $281M | 0% | +6% | +8% |
| Blank check company formed by Foundry Group and a former Splunk executive targeting tech. | |||||
| Fortress Value Acq. III (FVT.U) | $200M | $250M | 0% | +7% | +8% |
| Third blank check company formed by executives at Fortress Investment Group. | |||||
| Provident Acquisition (PAQCU) | $200M | $250M | 0% | +7% | +7% |
| Blank check company targeting technology businesses in Southeast Asia. | |||||
| Prospector Capital Corp. (PRSRU) | $300M | $375M | 0% | +6% | +6% |
| Blank check company formed by former Qualcomm executives targeting the tech sector. | |||||
| Sports Ventures Acq. (AKICU) | $200M | $256M | 0% | +4% | +6% |
| Blank check company targeting sports, media, and entertainment. | |||||
| Benessere Capital Acq. (BENEU) | $100M | $128M | 0% | +3% | +6% |
| Blank check company targeting middle market technology businesses in the Americas. | |||||
| Pioneer Merger (PACXU) | $350M | $438M | 0% | +6% | +6% |
| Blank check company formed by Falcon Edge Capital and Patriot Global Management. | |||||
| Epiphany Tech Acquisition (EPHYU) | $350M | $446M | 0% | +5% | +5% |
| Blank check company targeting the technology industry. | |||||
| Powered Brands (POWRU) | $240M | $300M | 0% | +5% | +5% |
| Blank check company formed by Greycroft and entrepreneur Katherine Power targeting a consumer business. | |||||
| Omega Alpha SPAC (OMEG) | $120M | $155M | 0% | +3% | +5% |
| Blank check company formed by Omega Funds targeting the biotech sector. | |||||
| Bright Lights Acquisition (BLTSU) | $200M | $250M | 0% | +5% | +4% |
| Blank check company targeting the consumer products and media, entertainment, and sports sectors. | |||||
| Locust Walk Acquisition (LWACU) | $153M | $199M | 0% | +4% | +4% |
| Blank check company formed by Locust Walk Partners targeting the healthcare sector. | |||||
| Mountain Crest Acq. II (MCADU) | $50M | $66M | 0% | +4% | +4% |
| Blank check company targeting a business in North America with under-researched assets. | |||||
| Poema Global Holdings (PPGHU) | $300M | $375M | 0% | +3% | +4% |
| Blank check company targeting technology businesses in Europe and Asia. | |||||
| KludeIn I Acquisition (INKAU) | $150M | $188M | 0% | +4% | +4% |
| Blank check company targeting software or technology-enabled growth businesses. | |||||
| Kairos Acquisition (KAIRU) | $240M | $300M | 0% | +2% | +3% |
| Blank check company targeting the insurance and insurtech sectors. | |||||
| Global Synergy Acq. (GSAQU) | $225M | $281M | 0% | +3% | +3% |
| Blank check company targeting technology services. | |||||
| Empowerment & Inclusion I (EPWR.U) | $240M | $300M | 0% | +3% | +3% |
| Blank check company targeting a diverse-led or inclusive-focused business. | |||||
| KL Acquisition (KLAQU) | $250M | $313M | 0% | n/a | +3% |
| Blank check company formed by Kennedy Lewis targeting the healthcare industry. | |||||
| Vickers Vantage I (VCKAU) | $120M | $150M | 0% | +2% | +3% |
| Blank check company formed by Singapore-based Vickers Venture Partners. | |||||
| LightJump Acquisition (LJAQU) | $120M | $150M | 0% | +2% | +2% |
| Blank check company formed by private equity exec Robert Bennett targeting the tech sector. | |||||
| Tastemaker Acquisition (TMKRU) | $240M | $300M | 0% | +2% | +2% |
| Blank check company focusing on the restaurant, hospitality, and related tech and services sectors. | |||||
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Seven IPOs and twenty SPACs submitted initial filings this past week. Carlyle-backed diagnostics provider Ortho Clinical (OCDX) filed to raise $800 million. Brazil’s alternative asset manager Vinci Partners (VINP), residential mortgage producer Home Point Capital (HMPT), virtual communication platform ON24 (ONTF), and IT and customer service provider TELUS International (TINT) each filed to raise $100 million. Medical device maker Cardiva Medical (CARD) filed to raise $75 million and Danish biotech Evaxion Biotech (EVAX) filed to raise $35 million. Fourteen SPACs filed to raise $4.8 billion. The group was led by Apollo’s second SPAC Apollo Strategic II (APGB.U), which filed to raise $400 million, and James Carpenter and Robert Mancini’s third SPAC RMG Acquisition III (RMGCU), which filed to raise $350 million.
| 27 Filings During the Week of January 4th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| B. Riley Principal 150 (BRPM.U) | $150M | SPAC | B. Riley FBR |
| Third blank check company formed by diversified financial services firm B. Riley Financial. | |||
| CA Healthcare Acquisition (CAHCU) | $100M | SPAC | BTIG |
| Blank check company targeting the healthcare industry. | |||
| CF Acquisition V (CFVU) | $250M | SPAC | Cantor Fitz. |
| Fifth blank check company formed by Cantor Fitzgerald. | |||
| Constellation Acq. I (CSTA.U) | $300M | SPAC | Deutsche Bank |
| Blank check company targeting disruptive innovation. | |||
| D and Z Media Acq. (DNZ.U) | $250M | SPAC | Goldman |
| Blank check company led by a former Intercontinental Exchange executive targeting media and edtech businesses. | |||
| DiamondHead Holdings (DHHCU) | $300M | SPAC | Goldman |
| Second blank check company led by David Hamamoto targeting businesses with growth potential. | |||
| Evaxion Biotech (EVAX) | $35M | Health Care | Oppenheimer |
| Danish Phase 1/2 biotech using AI to develop immuno-oncology therapies. | |||
| Foresight Acquisition (FOREU) | $275M | SPAC | Cowen |
| Blank check company targeting consumer tech and healthcare industries. | |||
| Home Point Capital (HMPT) | $500M | Financials | Goldman |
| Wholesale residential mortgage producer and servicer. | |||
| ITHAX Acquisition (ITHXU) | $175M | SPAC | Cantor Fitz. |
| Blank check company formed by Ithaca Capital Partners and AXIA Ventures Group targeting the leisure industry. | |||
| LMF Acquisition (LMAOU) | $75M | SPAC | Maxim |
| Blank check company formed by LM Funding America targeting the financial services sector. | |||
| ON24 (ONTF) | $100M | Technology | Goldman |
| Provides cloud-based webcasting and virtual communication services. | |||
| TELUS International (TINT) | $100M | Industrials | JP Morgan |
| Provides customer service outsourcing and digital IT services. | |||
| African Gold Acquisition (AGAC.U) | $300M | SPAC | B. Riley FBR |
| Blank check company led by South African investors and operators targeting the gold mining industry. | |||
| Apollo Strategic II (APGB.U) | $400M | SPAC | Deutsche Bank |
| Second blank check company formed by Apollo targeting growth-oriented businesses. | |||
| Fortistar Sustainable (FSSIU) | $200M | SPAC | Credit Suisse |
| Blank check company formed by Fortistar targeting sustainability. | |||
| Northern Star II (STII.RC) | $300M | SPAC | Citi |
| Second blank check company formed by Joanna Coles and SPAC veteran Jonathan Ledecky. | |||
| OEP Open Water I (OEPW.U) | $300M | SPAC | Credit Suisse |
| Blank check company formed by One Equity Partners. | |||
| Primavera Capital Acq. (PV.U) | $300M | SPAC | Credit Suisse |
| Blank check company formed by Primavera Capital targeting a consumer business with a presence in China. | |||
| SCP & CO Healthcare Acq. (SHACU) | $175M | SPAC | Barclays |
| Blank check company formed by SCP & CO targeting the healthcare industry. | |||
| Atlas Crest Investment II (ACII.U) | $250M | SPAC | Cantor Fitz. |
| Second blank check company formed by Moelis and Company. | |||
| Cardiva Medical (CARD) | $75M | Health Care | JP Morgan |
| Makes minimally invasive catheter-based vascular closure devices. | |||
| European Sustainable Acq. (EUSGU) | $125M | SPAC | EarlyBird |
| Blank check company formed by Lucerne Capital and the former head of the IFC targeting sustainable industries in Europe. | |||
| North Atlantic Acq. (NAACU) | $300M | SPAC | Wells Fargo |
| Blank check company targeting the consumer, industrials, and telecom sectors in North America and Europe. | |||
| Ortho Clinical (OCDX) | $800M | Health Care | JP Morgan |
| Carlyle-backed global provider of in vitro diagnostic products. | |||
| RMG Acquisition III (RMGCU) | $350M | SPAC | BofA |
| Third blank check company formed by Riverside's James Carpenter and former Carlyle executive Robert Mancini. | |||
| Vinci Partners (VINP) | $100M | Financials | JP Morgan |
| Alternative asset manager in Brazil. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/7/2021, the Renaissance IPO Index was up 3.2% year-to-date, while the S&P 500 was up 1.3%. 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 0.4% year-to date, while the ACWX was up 3.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.
