The IPO market revved back to life with nine IPOs raising $5.4 billion, joined by crypto exchange Coinbase’s direct listing. SPAC activity continued to decline, with just two raising $700 million. Pipeline activity held steady, with 10 IPOs, six SPACs, and one direct listing submitting initial filings.
The first major direct listing on the Nasdaq, Coinbase (COIN) opened for trading at $381 (+52% vs. reference price) for an implied market value of $101 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. From its opening price, Coinbase finished down 10%.
AppLovin (APP) priced at the midpoint to raise $2.0 billion at a $30.7 billion market cap. This mobile ad tech company provides app discovery tools that help app developers to manage user acquisition and monetization. While it has strong growth and a track record of strong margins, AppLovin faces significant competition and must adapt to evolving regulations and policies. AppLovin finished down 24%.
Autonomous trucking startup TuSimple (TSP) priced above the range to raise $1.4 billion at a $9.1 billion market cap. TuSimple is developing autonomous driving technology for semi-trucks in order to build the first Autonomous Freight Network (AFN). Highly unprofitable and fast growing, this startup has reservations for over 5,700 autonomous semi-trucks. TuSimple finished flat at 0%.
Senior-focused healthcare platform agilon health (AGL) priced at the high end to raise $1.1 billion at a $9.6 billion market cap. This company provides a healthcare platform that incentivizes physicians to prioritize long-term patient health. The company is unprofitable, though revenue saw double-digit growth in 2020. agilon health finished up 30%.
AI drug discovery biotech Recursion Pharmaceuticals (RXRX) upsized and priced at the high end to raise $436 million at a $3.3 billion market cap. This Phase 1 biotech is using its AI-powered platform to discover drugs for rare diseases. With a pipeline of over 37 identified programs, Recursion Pharmaceuticals expects to move four drug candidates into Phase 2 trials in the next four to five quarters. Recursion Pharmaceuticals finished up 74%.
Alkami Technology (ALKT) priced above the upwardly revised range to raise $180 million at a $2.9 billion market cap. Alkami provides a digital banking platform to community, regional, and superregional financial institutions, serving over 150 clients. Averaging strong double-digit growth over the past two years, this company has steadily increased margins, though it is unprofitable. Alkami Technology finished up 40%.
Cancer biotech Biomea Fusion (BMEA) upsized and priced at the high end to raise $153 million at a $511 million market cap. Biomea is developing small molecule drugs for genetically defined cancers. Its lead candidate is currently in IND-enabling studies, and the company expects to file an IND application in the 2H21. Biomea finished up 9%.
Spatial biology company Akoya Biosciences (AKYA) priced at the high end to raise $132 million at a $793 million market cap. Akoya Biosciences offers end-to-end solutions for tissue analysis and spatial phenotyping to academic and biopharma scientists. Akoya had over 550 instruments installed as of 12/31/20, a +27% increase over 2019. Akoya finished up 30%.
Disposable packaging provider Karat Packaging (KRT) priced below the range to raise $63 million at a $310 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. Karat Packaging finished up 13%.
Online gambling platform Esports Technologies (EBET) priced at the high end of the upwardly revised range to raise $14 million at a $124 million market cap. Unprofitable with demonstrated growth, this company operates an online gambling platform that is focused on esports and competitive gaming. 507%. Esports Technologies popped 507% on its first day, the largest first-day gain in over a decade, and finished the week up 323%.
Two blank check companies went public this past week: Technology Crossover Ventures’ SPAC TCV Acquisition (TCVA) and TPG’s SPAC TPG Pace Beneficial II (YTPG), both of which raised $350 million.
| 12 IPOs During the Week of April 12th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 04/16 |
| Esports Technologies (EBET) | $14M | $124M | 26% | +507% | +323% |
| Operates an online gambling platform focused on esports and competitive gaming. | |||||
| Recursion Pharmaceuticals (RXRX) | $436M | $3,287M | 6% | +74% | +74% |
| Phase 2-ready biotech using AI to develop therapies for rare diseases. | |||||
| Alkami Technology (ALKT) | $180M | $2,867M | 28% | +43% | +40% |
| Provides an online banking SaaS platform to regional banks. | |||||
| Coinbase (COIN) | $0M | $66,384M | 0% | +31% | +37% |
| Operates a cryptocurrency exchange and digital currency wallets. | |||||
| agilon health (AGL) | $1,072M | $9,645M | 7% | +35% | +30% |
| Provides a senior-focused value-based care platform for primary care physicians. | |||||
| Akoya Biosciences (AKYA) | $132M | $793M | 5% | +30% | +30% |
| Provides spatial biology solutions for discovery and clinical research. | |||||
| Karat Packaging (KRT) | $63M | $310M | -16% | +16% | +13% |
| Produces single-use food packaging. | |||||
| Biomea Fusion (BMEA) | $153M | $511M | 6% | +9% | +9% |
| Preclinical biotech developing small molecule therapies for genetically defined cancers. | |||||
| TCV Acquisition (TCVA) | $350M | $448M | 0% | +6% | +3% |
| Blank check company formed by Technology Crossover Ventures targeting tech. | |||||
| TPG Pace Beneficial II (YTPG) | $350M | $398M | 0% | +1% | +1% |
| Blank check company formed by TPG Pace Group targeting a business with a strong ESG profile. | |||||
| TuSimple (TSP) | $1,351M | $9,143M | 8% | +0% | +0% |
| Developing autonomous driving technology for freight trucks. | |||||
| AppLovin (APP) | $2,000M | $30,730M | 0% | -19% | -24% |
| Provides a platform for marketing and monetizing mobile games. | |||||
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10 IPOs submitted initial filings this past week. Israeli web analytics provider Similarweb (SMWB) filed to raise $200 million. Brazilian customer experience platform Zenvia (ZENV), business services provider TaskUs (TASK), wellness products supplier The Bountiful Company (BTFL), Chinese health insurance platform Waterdrop (WDH), Phase 3 biotech Talaris Therapeutics (TALS), and gene therapy biotech Gyroscope Therapeutics Holdings (VISN) all filed to raise $100 million. Phase 2 biotech Sagimet Biosciences (SGMT) filed to raise $75 million. Preclinical biotech Pasithea Therapeutics (KTTA) filed to raise $20 million. CBD products maker Grove (GRVI) filed to raise $15 million.
Six SPACs submitted initial filings led by tech SPAC Stillwater Growth I (SWGCU), which filed to raise $300 million, and Fifth Wall’s third SPAC Fifth Wall Acquisition III (FWAC), which filed to raise $250 million.
Additionally, website creation platform Squarespace (SQSP) filed for a direct listing.
| 17 Filings During the Week of April 12th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Fifth Wall Acq. III (FWAC) | $250M | SPAC | Deutsche Bank |
| Third blank check company formed by Fifth Wall targeting real estate technology. | |||
| Golden Path Acquisition (GPCOU) | $50M | SPAC | Ladenburg |
| Blank check company targeting businesses with a connection to the Asian market. | |||
| Gyroscope Therapeutics (VISN) | $100M | Health Care | Morgan Stanley |
| UK-based Phase 2 biotech developing gene therapies for ocular diseases. | |||
| Sagimet Biosciences (SGMT) | $75M | Health Care | BofA |
| Phase 2 biotech developing selective FASN inhibitors for liver diseases and cancers. | |||
| Squarespace (SQSP) | $0M | Technology | |
| Provides an easy-to-use platform for businesses and individuals to create websites. | |||
| Stillwater Growth I (SWGCU) | $300M | SPAC | BofA |
| Blank check company targeting tech businesses with large addressable markets. | |||
| Talaris Therapeutics (TALS) | $100M | Health Care | Morgan Stanley |
| Phase 3 biotech developing methods for allogeneic hematopoietic stem cell transplantation. | |||
| Waterdrop (WDH) | $100M | Financials | Goldman (Asia) |
| Operates a health insurance and healthcare crowdfunding platform in China. | |||
| Zenvia (ZENV) | $100M | Technology | Goldman |
| Provides a customer experience communications platform in Latin America. | |||
| GigInternational1 (GIWWU) | $200M | SPAC | Oppenheimer |
| Seventh blank check company formed by semiconductor veteran Avi Katz. | |||
| Grove (GRVI) | $15M | Consumer Discretionary | Kingswood Cap. Mkts. |
| Makes and sells CBD products. | |||
| Similarweb (SMWB) | $200M | Technology | JP Morgan |
| Provides a freemium platform for website traffic analytics. | |||
| G3 VRM Acquisition (GGGVU) | $100M | SPAC | Maxim |
| Blank check company formed by G2 Capital Advisors targeting tech and business services. | |||
| Pasithea Therapeutics (KTTA) | $20M | Health Care | Kingswood Cap. Mkts. |
| Preclinical biotech researching drugs for psychiatric and neuro disorders. | |||
| Lakeshore Acquisition I (LAAAU) | $50M | SPAC | Craig-Hallum |
| Blank check company formed by executives of Shanghai Renaissance Investment Management. | |||
| TaskUs (TASK) | $100M | Technology | Goldman |
| Provides outsourced virtual business services to enterprises and SMBs. | |||
| The Bountiful Company (BTFL) | $100M | Consumer Staples | Morgan Stanley |
| Vertically-integrated supplier of branded vitamins and wellness products. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/15/2021, the Renaissance IPO Index was down 2.4% year-to-date, while the S&P 500 was up 11.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video Communications (ZM). The Renaissance International IPO Index was down 3.8% year-to-date, while the ACWX was up 7.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou Technology and Nexi.
