US IPO Week Ahead: Cleaning products, crafting machines, and more in a diverse 15 IPO week

Updated Monday, 3/22.

15 IPOs are currently scheduled to raise $5.7 billion in the week ahead as IPO activity continues to pick up. The diverse group spans six sectors and includes cleaning products, defense technology, low-cost TVs, crafting machines, and more.

Cleaning products maker Diversey Holdings (DSEY) plans to raise $900 million at a $5.9 billion market cap. Diversey is a leading global pure play provider of cleaning and hygiene products for the institutional and food and beverage markets, holding the first or second position in its key markets. Profitable with positive free cash flow, the company serves more than 85,000 customers in over 80 countries.

Web development platform DigitalOcean (DOCN) plans to raise $751 million at a $5.6 billion market cap. DigitalOcean was founded to provide the capabilities of cloud infrastructure and services to individual developers, start-ups, and SMBs. The company is highly profitable with strong margins, though it has significant capex needs.

Being spun out of Italian defense group Leonardo, Leonardo DRS (DRS) plans to raise $670 million at a $3.0 billion market cap. The company is a leading provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. While DRS’s targeted product portfolio is aligned with DoD priorities, the US defense budget is expected to be flat or slightly down going forward.

Chinese Q&A platform Zhihu (ZH) plans to raise $578 million at a $6.2 billion market cap. Zhihu is the largest Q&A-inspired online community and one of the top five comprehensive online content communities in China, both in terms of average mobile MAUs and revenue in 2020. The company is unprofitable, and saw explosive growth and margin expansion in 2020.

Medicare Advantage company Alignment Healthcare (ALHC) plans to raise $490 million at a $3.4 billion market cap. Alignment provides customized Medicare Advantage plans and currently operates in 22 markets across three states. Profitable on an EBITDA basis with solid growth, Alignment has roughly 81,500 members, representing 3% of the seniors in Medicare Advantage plans in these markets.

Low-cost TV brand Vizio (VZIO) plans to raise $333 million at a $4.5 billion market cap. Vizio’s portfolio consists of Smart TVs and sound bars, as well as a proprietary Smart TV operating system called SmartCast. The company was #2 in the North American television market by unit shipment from January 2018 to December 2020, and was the #1 sound bar brand in America by unit sales over the same period.

Crafting machine maker Cricut (CRCT) plans to raise $322 million at a $4.7 billion market cap. Cricut's connected machines, design apps, and accessories and materials allow its community of 3.7 million users to make personalized crafts. Benefiting from quarantined consumers in 2020, Cricut had nearly 1.2 million Paid Subscribers as of 9/30/20, and its total community of users grew 66% year-over-year.

Wholesale car auction platform ACV Auctions (ACVA) plans to raise $314 million at a $3.1 billion market cap. Since its inception, ACV has facilitated over 750,000 wholesale transactions between over 21,000 dealers and commercial partners. Fast growing with a history of unprofitability, ACV operates in 125 territories, covering a substantial majority of all dealer locations within the continental US.

Swedish proteomics platform Olink Holding (OLK) plans to raise $300 million at a $2.0 billion market cap. Olink provides a portfolio of protein biomarker analysis products, with its current offering based on proprietary Proximity Extension Assay technology. The company’s revenue has historically been driven by the research market, though it expects its platform’s diagnostics applications will drive long-term growth.

Digital marketing management platform SEMrush Holdings (SEMR) plans to raise $252 million at a $2.2 billion market cap. Unprofitable with strong growth, SEMrush’s platform enables companies to identify and reach the right audience for their content, in the right context, and through the right channels. As of 12/31/20, its platform had over 404,000 active free and 67,000 paying customers.

Preclinical biotech Design Therapeutics (DSGN) plans to raise $228 million at a $1.1 billion market cap. The company is developing novel small-molecule therapies that are designed to be disease-modifying and target the underlying cause of inherited nucleotide repeat expansion diseases. Design plans to evaluate its lead candidate in trials with Friedreich ataxia patients by the 1H22, subject to receiving regulatory clearance.

Secondhand fashion platform ThredUp (TDUP) plans to raise $156 million at a $1.4 billion market cap. ThredUp’s platform consists of distributed processing infrastructure, proprietary software and systems, and data science expertise. As of 12/31/20, the company had 1.24 million active buyers and 428,000 active sellers. ThredUp is unprofitable, and GMV growth slowed in the 4Q20.

Rare disease biotech Edgewise Therapeutics (EWTX) plans to raise $150 million at an $806 million market cap. Its lead candidate, EDG-5506, is an orally administered allosteric, selective, fast myofiber (type II) myosin small molecule inhibitor designed to address the root cause of dystrophinopathies. It is currently in a Phase 1 trial for Duchenne muscular dystrophy, Becker muscular dystrophy, and Limb-girdle muscular dystrophy.

Oncology biotech Ikena Oncology (IKNA) plans to raise $125 million at a $606 million market cap. Its lead targeted oncology candidate is an oral small molecule inhibitor of the TEAD transcription factor in the Hippo signaling pathway, for which the company intends to submit an IND in the 2H21. Ikena's most advanced tumor microenvironment candidates are currently being evaluated in Phase 1 trials.

Dutch biotech LAVA Therapeutics (LVTX) plans to raise $101 million at a $405 million market cap. Its lead candidate is a unique, humanized gamma-delta bsTCE targeting CD1d-expressing hematologic cancers, including chronic lymphocytic leukemia (CLL), multiple myeloma (MM), and acute myeloid leukemia (AML). LAVA expects to begin enrollment for a Phase 1/2a trial in these indications in the 1H21.

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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/18/21, 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 (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.