The first month of 2021 closed out with eight IPOs, 24 SPACs, and one postponement. Three issuers raised more than $1 billion, bringing the count of billion-dollar US IPOs in January to six, the most in a single month ever. Just one IPO submitted an initial filing ahead of the February lull, but SPACs kept the pipeline active with 27 new filings.
Oaktree-backed Shoals Technologies (SHLS) further upsized and priced above upwardly revised range to raise $1.9 billion at a $4.2 billion market cap. The company designs and manufactures products used in large solar energy projects primarily to connect panels to inverters. While its historical growth has fluctuated with US solar cyclicality, the company delivered strong revenue growth in 2019 and expanding EBITDA margins in the 9mo20. Shoals finished up 36%.
SAP spinoff Qualtrics International (XM) further upsized and priced above the upwardly revised range to raise $1.6 billion at a $15.6 billion market cap. Qualtrics provides a customer and employee experience management platform to over 12,000 organizations. While it faces significant competition, the company has strong growth and a sticky customer base, with 120%+ net retention over the last eight quarters. Qualtrics finished up 47%.
Carlyle-backed Ortho Clinical Diagnostics (OCDX) upsized and priced below the range to raise $1.3 billion at a $3.9 billion market cap. With strong recurring revenue and a sticky customer base, the company provides in vitro diagnostics testing equipment, consumables, and services. Growth has been minimal, and the company is highly leveraged post-IPO. Ortho Clinical Diagnostics finished down 3%.
Brazilian alternative asset manager Vinci Partners Investments (VINP) priced at the high end to raise $250 million at a $999 million market cap. Benefiting from low interest rate-driven asset allocation shifts, the company grew AUM by 55% in the 9mo20, though it is exposed to volatile foreign currency exchange. Vinci Partners finished down 5%.
Israeli cargo shipper ZIM Integrated Shipping Services (ZIM) downsized and priced below the range to raise $218 million at a $1.8 billion market cap. ZIM is the industry’s most asset-light shipping liner, chartering 99% of its fleet. However, its business is sensitive to fluctuations in the charter market, and its faces significant competition in a market dominated by larger players. ZIM finished down 20%.
Mortgage producer Home Point Capital (HMPT) downsized and priced $6 below the range to raise $94 million at a $1.9 billion market cap. Backed by Stone Point Capital, Home Point primarily operates in the wholesale channel, underwriting loans on behalf of independent mortgage brokers. While the company has grown its share of the US wholesale market, it competes with many larger players. Home Point finished down 13%.
Indoor farming services provider Agrify (AGFY) further upsized and priced at the high end to raise $54 million at a $155 million market cap. Highly unprofitable and fast growing, the company claims to differentiate itself with a bundled solution of equipment, software, and services that is turnkey, end-to-end, fully integrated and optimized for precision growing. Agrify finished up 14%.
Nasdaq uplisting Crown Electrokinetics (CRKN) raised $19 million at a $76 million market cap. The company develops and sells optical switching film that can be embedded between sheets of glass or applied to the surface of glass to electronically control opacity. It has not generated significant revenue to date. Crown Electrokinetics finished up 21%.
Supermarket chain Southeastern Grocers (SEGR) postponed its $134 million IPO, with the company stating that it would continue to evaluate the timing for the proposed offering as market conditions develop.
24 SPACs raised $5.4 billion led by Mason Capital’s Mason Industrial Technology (MIT.U), which raised $450 million to target businesses in the industrial technology, advanced materials, or specialty chemicals industries.
| 32 IPOs During the Week of January 25th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 01/29 |
| Qualtrics (XM) | $1,551M | $15,627M | 25% | +52% | +47% |
| Experience management software provider being spun out of SAP. | |||||
| Shoals Technologies Group (SHLS) | $1,925M | $4,173M | 25% | +24% | +36% |
| Leading US provider of electrical balance-of-system products for solar projects. | |||||
| Bridgetown 2 Hldgs (BTNB) | $260M | $325M | 0% | +30% | +22% |
| Second blank check company formed by Pacific Century and Thiel Capital targeting new economy sectors in Southeast Asia. | |||||
| Crown Electrokinetics (CRKN) | $19M | $76M | 0% | +3% | +21% |
| Developing electrokinetic film technology for smart or dynamic glass. | |||||
| Agrify (AGFY) | $54M | $155M | 11% | +27% | +14% |
| Provides turnkey indoor farming solutions. | |||||
| Climate Real Impact II (CLIM.U) | $210M | $263M | 0% | +9% | +9% |
| Second blank check company formed by PIMCO and industry veterans targeting climate change-fighting sectors. | |||||
| DiamondHead Holdings (DHHCU) | $300M | $375M | 0% | +8% | +9% |
| Second blank check company led by David Hamamoto targeting businesses with growth potential. | |||||
| CF Acquisition V (CFFVU) | $250M | $319M | 0% | +8% | +8% |
| Fifth blank check company formed by Cantor Fitzgerald. | |||||
| Hudson Executive Inv. II (HCIIU) | $225M | $281M | 0% | +6% | +7% |
| Second blank company formed by Hudson Executive Capital targeting high-growth industries. | |||||
| Northern Star II (NSTB.U) | $350M | $438M | 0% | +6% | +6% |
| Second blank check company formed by Joanna Coles and SPAC veteran Jonathan Ledecky. | |||||
| Fortistar Sustainable (FSSIU) | $225M | $281M | 0% | +3% | +6% |
| Blank check company formed by Fortistar targeting sustainability. | |||||
| Science Strategic Acq. (SSAAU) | $270M | $338M | 0% | +4% | +5% |
| Blank check company formed by venture firm Science Inc. targeting consumer tech. | |||||
| Z-Work Acquisition (ZWRKU) | $200M | $250M | 0% | +4% | +4% |
| Blank check company targeting work technology businesses. | |||||
| Ignyte Acquisition (IGNYU) | $50M | $64M | 0% | +3% | +3% |
| Blank check company targeting the life sciences, biotechnology and healthcare sectors. | |||||
| Constellation Acq. I (CSTA.U) | $300M | $375M | 0% | +3% | +3% |
| Blank check company targeting disruptive innovation. | |||||
| Biotech Acquisition (BIOTU) | $200M | $250M | 0% | +3% | +3% |
| Blank check company formed by CRO and venture investor SPRIM targeting the biotech industry. | |||||
| D and Z Media Acq. (DNZ.U) | $250M | $313M | 0% | +3% | +3% |
| Blank check company led by former NYSE/ICE executive Betty Liu targeting media and edtech businesses. | |||||
| Clarim Acquisition (CLRMU) | $250M | $313M | 0% | +3% | +3% |
| Blank check company targeting consumer-facing e-commerce. | |||||
| CA Healthcare Acquisition (CAHCU) | $100M | $125M | 0% | +2% | +3% |
| Blank check company targeting the healthcare industry. | |||||
| Brookline Capital Acq. (BCACU) | $50M | $64M | 0% | +2% | +2% |
| Blank check company formed by Brookline Capital Markets targeting a life science business. | |||||
| LMF Acquisition (LMAOU) | $90M | $113M | 0% | +4% | +2% |
| Blank check company formed by LM Funding America targeting the financial services sector. | |||||
| TLG Acquisition One (TLGA.U) | $350M | $438M | 0% | +1% | +1% |
| Blank check company formed by The Lawrie Group. | |||||
| HealthCor Catalio Acq. (HCAQ) | $180M | $225M | 0% | +0% | +1% |
| Blank check company formed by HealthCor Management and Catalio Capital Management targeting healthcare. | |||||
| ITHAX Acquisition (ITHXU) | $210M | $270M | 0% | +1% | +1% |
| Blank check company formed by Ithaca Capital Partners and AXIA Ventures Group targeting the leisure industry. | |||||
| Growth Capital Acq. (GCACU) | $150M | $188M | 0% | +0% | +0% |
| Blank check company formed by Greek shipping executives targeting an emerging growth company. | |||||
| BlueRiver Acquisition (BLUA.U) | $250M | $320M | 0% | n/a | +0% |
| Blank check company target the TMT and entertainment industries. | |||||
| Mason Industrial Tech (MIT.U) | $450M | $563M | 0% | n/a | +0% |
| Blank check company formed by Mason Capital targeting advanced industrials. | |||||
| EQ Health Acquisition (EQHA.U) | $191M | $239M | 0% | n/a | +0% |
| Blank check company formed by EQ Capital Strategies and FS Investments targeting healthcare services. | |||||
| Ortho Clinical (OCDX) | $1,292M | $3,905M | -21% | -5% | -3% |
| Carlyle-backed global provider of in vitro diagnostic products. | |||||
| Vinci Partners (VINP) | $250M | $999M | 6% | -6% | -5% |
| Leading independent alternative asset manager in Brazil. | |||||
| Home Point Capital (HMPT) | $94M | $1,904M | -35% | -13% | -13% |
| Wholesale residential mortgage producer and servicer. | |||||
| ZIM Shipping (ZIM) | $218M | $1,787M | -14% | -23% | -20% |
| Asset-light Israeli container shipping liner leasing about 400K TEU capacity. | |||||
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GreenBox POS (GBOX), which is developing blockchain-based payment solutions, filed for a $46 million Nasdaq uplisting. 27 SPACs submitted initial filings led by Glenview Capital’s Longview Acquisition II (LGV.U) and Lazard’s first SPAC Lazard Growth Acquisition I (LGACU), both of which filed to raise $500 million.
| 28 Filings During the Week of January 25th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Alpha Capital Acquisition (ASPCU) | $200M | SPAC | Citi |
| Blank check company targeting technology businesses in Latin America. | |||
| Altimar Acquisition III (ATAQU) | $125M | SPAC | Goldman |
| Third blank check company formed by HPS Investment Partners. | |||
| CF Acquisition VI (CFVIU) | $300M | SPAC | Cantor Fitz. |
| Sixth blank check company formed by Cantor Fitzgerald. | |||
| GreenBox POS (GBOX) | $46M | Technology | Kingswood Cap. Mkts. |
| Developing blockchain-based payment solutions. | |||
| HNR Acquisition (HNRAU) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company formed by Houston Natural Resources targeting the North American energy sector. | |||
| LDH Growth I (LDHAU) | $200M | SPAC | Citi |
| Second blank check company formed by SoftBank targeting technology-enabled sectors. | |||
| Longview Acquisition II (LGV.U) | $500M | SPAC | UBS |
| Second blank check company formed by executives at healthcare-focused hedge fund Glenview Capital. | |||
| Peridot Acquisition II (PDOT.U) | $300M | SPAC | UBS |
| Second blank check company formed by Carnelian Energy Capital targeting businesses with a positive environmental impact. | |||
| Simon Property Acq. (SPGS.U) | $300M | SPAC | Goldman |
| Blank check company formed by Simon Property Group. | |||
| Tailwind Intl. Acq. (TWIA.RC) | $250M | SPAC | Jefferies |
| Second blank check company co-formed by Casper CEO Philip Krim targeting international technology. | |||
| VPC Impact Acq. III (VPCCU) | $225M | SPAC | Citi |
| Fourth blank check company formed by Victory Park Capital to acquire a fintech business. | |||
| Pathfinder Acquisition (PFDRU) | $275M | SPAC | Deutsche Bank |
| Blank check company formed by HGGC and Industry Ventures targeting technology. | |||
| Broadscale Acquisition (SCLEU) | $250M | SPAC | Morgan Stanley |
| Blank check company targeting businesses driving the decarbonization of the economy. | |||
| Gores Holdings VIII (GIIXU) | $300M | SPAC | Deutsche Bank |
| Eighth blank check company formed by The Gores Group. | |||
| Live Oak Mobility Acq. (LOKM.U) | $200M | SPAC | Jefferies |
| Third blank check company formed by Live Oak Merchant Partners targeting the mobility and motion technology sectors. | |||
| Rosecliff Acquisition I (RCLF.U) | $200M | SPAC | BTIG |
| Blank check company backed by Rosecliff Venture Management targeting technology. | |||
| Tuatara Capital Acq. (TCACU) | $150M | SPAC | JP Morgan |
| Blank check company formed by Tuatara Capital targeting the cannabis industry. | |||
| FS Development II (FSII) | $100M | SPAC | Jefferies |
| Second blank check company formed by Foresite Capital targeting a healthcare business. | |||
| ION Acquisition 2 (IACB.U) | $220M | SPAC | Goldman |
| Second blank check company formed by ION Asset Management targeting an Israeli tech business. | |||
| Kismet Acquisition Three (KIIIU) | $250M | SPAC | Credit Suisse |
| Third blank check company led by the former CEO of Russia's MegaFon targeting a European business. | |||
| Kismet Acquisition Two (KAIIU) | $200M | SPAC | Citi |
| Second blank check company led by the former CEO of Russia's MegaFon targeting a European business. | |||
| TS Innovation II (TSIBU) | $250M | SPAC | BofA |
| Second blank check company formed by Tishman Speyer targeting real estate and property technology businesses. | |||
| Aeon Acquisition (AACPU) | $125M | SPAC | Maxim |
| Blank check company formed by The Aeon Group targeting technology. | |||
| Bite Acquisition (BITE.U) | $150M | SPAC | EarlyBird |
| Blank check company targeting the restaurant sector in North America. | |||
| Catcha Investment (CIU.RC) | $250M | SPAC | JP Morgan |
| Blank check company formed by Catcha Group targeting "new economy" sectors in Asia Pacific. | |||
| Lazard Growth Acq. I (LGACU) | $500M | SPAC | Goldman |
| Blank check company formed by Lazard targeting growth-oriented subsectors. | |||
| Social Leverage Acq. I (SLAC.U) | $300M | SPAC | Barclays |
| Blank check company led by Social Leverage's Howard Lindzon targeting the tech and fintech sectors. | |||
| Tribe Capital Growth I (ATVCU) | $200M | SPAC | Cantor Fitz. |
| Blank check company formed by Tribe Capital and Arrow Capital targeting the tech sector. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/28/21, the Renaissance IPO Index was up 6.3% year-to-date, while the S&P 500 was up 0.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video (ZM). The Renaissance International IPO Index was up 3.1% year-to-date, while the ACWX was up 2.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and China Feihe.
