Five IPOs are scheduled to raise $4.5 billion in the week ahead, joined by Coinbase’s widely anticipated direct listing.
Digital banking platform Coinbase (COIN) will be the Nasdaq’s first major direct listing, with an estimated market value at listing of more than $50 billion. The company operates a platform that allows individuals and institutions to trade Bitcoin and over 45 other crypto assets. While the company saw explosive growth in the 4Q20, its revenue is directly tied to cryptocurrency transactions, which have fluctuated historically.
The largest IPO of the week, AppLovin (APP) plans to raise $2.0 billion at a $30.7 billion market cap. This company provides a platform that enables mobile app developers to market and monetize their apps. Fast growing and profitable on an EBITDA basis, AppLovin has driven over six billion mobile app installs for developers since 2012.
Autonomous trucking startup TuSimple (TSP) plans to raise $1.3 billion at an $8.5 billion market cap. TuSimple is developing autonomous driving technology for semi-trucks in order to build the first Autonomous Freight Network (AFN). Highly unprofitable with explosive growth, TuSimple began generating revenue in 2019.
Senior-focused healthcare platform agilon health (AGL) plans to raise $1.0 billion at a $9.0 billion market cap. This company provides a healthcare platform that is focused on senior care for primary care physicians. agilon has posted strong growth and was profitable on an EBITDA basis in 2020. Insiders and new investors have indicated an interest in purchasing up to 50% of the deal.
Digital banking platform Alkami Technology (ALKT) plans to raise $141 million at a $2.2 billion market cap. Alkami provides a digital banking platform to community, regional, and superregional financial institutions. With double-digit growth over the past two years, Alkami is unprofitable, though it has steadily increased gross and EBITDA margins.
In its second IPO attempt, Karat Packaging (KRT) plans to raise $75 million at a $368 million market cap. Fast growing and profitable, this company manufactures and distributes disposable food packaging to many fast casual and fast food chains, such as Applebee’s, Chipotle, and In-N-Out.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Alkami Technology (ALKT) Plano, TX |
$141M $2,231M |
$22 - $25 6,000,000 |
Goldman JP Morgan |
| Provides an online banking SaaS platform to regional banks. | |||
| agilon health (AGL) Long Beach, CA |
$1,002M $9,006M |
$20 - $23 46,600,000 |
JP Morgan Goldman |
| Provides a senior-focused value-based care platform for primary care physicians. | |||
| AppLovin (APP) Palo Alto, CA |
$2,000M $30,708M |
$75 - $85 25,000,000 |
Morgan Stanley JP Morgan |
| Provides a platform for marketing and monetizing mobile games. | |||
| Coinbase (COIN) San Francisco, CA |
$22,970M $52,359M |
$200 114,850,768 |
|
| Operates a cryptocurrency exchange and digital currency wallets. | |||
| Karat Packaging (KRT) Chino, CA |
$75M $368M |
$18 - $20 3,950,000 |
Stifel William Blair |
| Produces single-use food packaging. | |||
| TuSimple (TSP) San Diego, CA |
$1,250M $8,454M |
$35 - $39 33,783,783 |
Morgan Stanley Citi |
| Developing autonomous driving technology for freight trucks. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/8/21, the Renaissance IPO Index was up 0.7% year-to-date, while the S&P 500 was up 9.1%. 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 2.5% year-to-date, while the ACWX was up 6.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou Technology and Nexi.
