Following some turbulence in the IPO market, eight IPOs are scheduled to raise $3.0 billion in the shortened holiday week.
Online real estate brokerage Compass (COMP) plans to raise $882 million at a $12.5 billion market cap. Compass provides a platform for real estate agents to manage and deliver service to seller and buyer clients. Fast growing but unprofitable, Compass is the largest independent real estate brokerage by Gross Transaction Value, with a 4% share of the US market.
Low-cost airline Frontier Group Holdings (ULCC) plans to raise $600 million at a $4.5 billion market cap. This airline offers flights throughout the United States and select international destinations across a network of approximately 110 airports. Hit hard by stay-at-home orders, the company’s revenue contracted, while net income and free cash flow swung negative in 2020.
Online education platform Coursera (COUR) plans toraise $495 million at a $5.1 billion market cap. Partnering with over 200 leading educational institutions, this company offers courses on a range of subjects through its online platform. Coursera is fast growing and unprofitable, and new investors have indicated on 25% of the deal.
Video software provider Kaltura (KLTR) plans to raise $353 million at a $2.2 billion market cap. Kaltura provides live, real-time, and on-demand video products to a wide range of businesses including educational institutions, and media and telecom companies. Benefitting from the pandemic driven uptick in virtual events, the company saw revenue expand in 2020, though gross margin contracted.
Business communication platform Intermedia Cloud Communications (INTM) plans to raise $300 million at a $1.5 billion market cap. This company provides a cloud-based communications and collaboration platform to over 122,000 business customers. Despite growing revenue, Intermedia Cloud Communications saw margins contract in 2020, and free cash flow swung negative.
South Africa-listed telematics provider Karooooo (Cartrack) (KARO) plans to raise $190 million at a $1.5 billion market cap. Karooooo provides a cloud-based transportation data analytics platform for customers to optimize their business and workforce. Karooooo is currently listed on the Johannesburg Stock Exchange under the ticker ‘CTK’.
UK-based biotech Achilles Therapeutics (ACHL) plans to raise $176 million at a $734 million market cap. This clinical stage immune-oncology biopharmaceutical company is developing T cell therapies for the treatment of solid tumors. Its lead candidate, ATL001, is currently in Phase 1/2a trials for advanced NSCLC and metastatic or recurrent melanoma, with data expected in the 2H22.
Cannabis products producer Flora Growth (FLGC) plans to raise $15 million at a $221 million market cap. This Canada-based company is cultivating and processing medical-grade cannabis oil and other cannabis derived products in Colombia. Flora Growth is highly unprofitable, and it just began generating revenues this past August.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Achilles Therapeutics (ACHL) London, United Kingdom |
$176M $734M |
$17 - $19 9,750,000 |
JP Morgan BofA |
| Phase 1/2 biotech developing precision T cell therapies for solid tumors. | |||
| Coursera (COUR) Mountain View, CA |
$495M $5,080M |
$30 - $33 15,730,000 |
Morgan Stanley Goldman |
| Online education platform offering courses in a variety of subjects. | |||
| Karooooo (KARO) Johannesburg, South Africa |
$190M $1,539M |
$47.52 4,000,000 |
Morgan Stanley BofA |
| A provider of vehicle fleet management software primarily in South Africa. | |||
| Compass (COMP) New York, NY |
$882M $12,481M |
$23 - $26 36,000,000 |
Goldman Morgan Stanley |
| Operates an online residential real estate brokerage platform. | |||
| Flora Growth (FLGC) Toronto, Canada |
$15M $221M |
$4 - $5 3,333,333 |
Boustead |
| Canadian developer of low-cost cannabis products in Colombia. | |||
| Frontier Group Holdings (ULCC) Denver, CO |
$600M $4,509M |
$19 - $21 30,000,000 |
Citi Barclays |
| Ultra low-cost US airline carrier that serves approximately 110 airports. | |||
| Intermedia Cloud (INTM) Sunnyvale, CA |
$300M $1,475M |
$23 - $26 12,244,898 |
Morgan Stanley JP Morgan |
| Provides a cloud-based communication platform for businesses. | |||
| Kaltura (KLTR) New York, NY |
$353M $2,201M |
$14 - $16 23,500,000 |
Goldman BofA |
| Provides live and on-demand video SaaS solutions. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/25/21, the Renaissance IPO Index was down 6.2% year-to-date, while the S&P 500 was up 4.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was down 8.9% 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 Kuaishou Technology and Nexi.
