The IPO market stayed active this past week with seven IPOs raising $1.9 billion. One company withdrew ahead of its expected pricing, specialty insurer The Fortegra Group (FRF). SPAC activity picked up slightly, with three blank check IPOs raising $560 million. New filers took a breather, with six IPOs and five SPACs submitting initial filings.
Entertainment and talent agency Endeavor Group Holdings (EDR) priced at the high end to raise $511 million at a $10.5 billion market cap. Endeavor is a leading global entertainment, sports, and content company with many well-known brands such as UFC and IMG. Despite strong pre-pandemic growth, revenue dropped 24% in 2020. Endeavor Group finished up 15%.
Home care provider Aveanna Healthcare (AVAH) priced at the low end of the downwardly revised range to raise $459 million at a $2.2 billion market cap. Aveanna provides home-based care through 42,000 caregivers to medically complex children and seniors. The company has a risky M&A strategy, and it is subject to complex and evolving regulation. Aveanna finished down 3%.
Healthcare platform Privia Health Group (PRVA) priced at the high end of the upwardly revised range to raise $449 million at a $2.8 billion market cap. This company provides a technology platform and management services to physicians to streamline workflows and provide a better patient experience. Privia is profitable with positive cash flows, though its physician and platform costs have weighed on gross margins. Privia finished up 58%.
Solar tracker system provider FTC Solar (FTCI) priced well below the range to raise $258 million at a $1.3 billion market cap. FTC Solar produces trackers used to rotate solar panels in ground-mounted utility-scale systems. Despite explosive revenue growth in 2020, the company has limited operating history with very low historical margins. FTC Solar finished up 5%.
Preclinical biotech Werewolf Therapeutics (HOWL) upsized and priced at the midpoint to raise $120 million at a $470 million market cap. Werewolf is developing molecules designed to selectively activate an immune response in the tumor microenvironment, and it plans to submit INDs for its lead candidates in the 1H22. Werewolf Therapeutics finished up 5%.
UK biotech Vaccitech (VACC) priced at the midpoint to raise $111 million at a $614 million market cap. This biotech is developing immunotherapies and vaccines for infectious diseases and cancers. Vaccitech is most widely known for contributing to the technology behind the AstraZeneca vaccine for COVID-19. Vaccitech finished up 1%.
Drone technology developer Red Cat Holdings (RCAT) downsized its offering to raise $16 million at a $153 million market cap. The company designs, develops, markets, and sells drone software and products. This company is highly unprofitable with negative cash flow. Red Cat finished up 1%.
Three blank check companies went public this past week: Internet retail and D2C focused-SPAC Big Sky Growth Partners (BSKYU), which raised $300 million; ION Asset Management’s third SPAC ION Acquisition 3 (IACC), which raised $220 million; and Zhencheng Capital founder’s SPAC TradeUP Global Corp (TUGCU), which filed to raise $40 million.
| 10 IPOs During the Week of April 26th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 04/30 |
| Privia Health Group (PRVA) | $449M | $2,781M | 28% | +51% | +58% |
| Provides a value-based care platform for physicians. | |||||
| Endeavor Group Holdings (EDR) | $511M | $10,532M | 2% | +5% | +15% |
| Global entertainment production company and talent agency. | |||||
| FTC Solar (FTCI) | $258M | $1,282M | -32% | +10% | +5% |
| Provides utility-scale advanced solar tracker systems. | |||||
| Red Cat Holdings (RCAT) | $16M | $153M | -2% | +1% | +1% |
| Develops and sells drone software and products. | |||||
| Werewolf Therapeutics (HOWL) | $120M | $470M | 0% | +1% | +1% |
| Preclinical biotech developing immune therapies for cancer. | |||||
| ION Acquisition 3 (IACC) | $220M | $275M | 0% | +0% | +0% |
| Third blank check company formed by ION Asset Management targeting an Israeli tech business. | |||||
| Big Sky Growth Partners (BSKYU) | $300M | $375M | 0% | +0% | +0% |
| Blank check company targeting digitally native internet retail and direct-to-consumer businesses. | |||||
| TradeUP Global Corp (TUGCU) | $40M | $52M | 0% | -1% | -2% |
| Second blank check company led by the founder of Zhencheng Capital. | |||||
| Aveanna Healthcare (AVAH) | $459M | $2,248M | -29% | -4% | -3% |
| Provides pediatric and adult home care services. | |||||
| Vaccitech (VACC) | $111M | $614M | 0% | -17% | -17% |
| Develops T cell immunotherapies and vaccines for cancers, COVID-19, and other diseases. | |||||
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Six IPOs submitted initial filings this past week. Human capital management platform Paycor HCM (PYCR), customer data platform Zeta Global (ZETA), Chinese online voice audio platform Ximalaya (XIMA), Chinese media and data platform Qiniu (QNIU), electronic billing platform Paymentus (PAY), and financial software solution provider MeridianLink (MLNK) all filed to raise $100 million.
Five SPACs submitted initial filings led by one of ShiftPixy’s four SPACs Insurity Capital (FMGU), which filed to raise $500 million.
| 11 Filings During the Week of April 26th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| MeridianLink (MLNK) | $350M | Technology | BofA |
| Provides cloud-based software solutions for financial institutions. | |||
| Paymentus (PAY) | $100M | Technology | Goldman |
| Electronic billing platform provider. | |||
| Qiniu (QNIU) | $100M | Technology | BofA |
| Provides a cloud services platform for media and data applications in China. | |||
| Ximalaya (XIMA) | $500M | Technology | Goldman |
| Leading Chinese online voice audio platform. | |||
| Industrial Human Capital (AXHU) | $250M | SPAC | A.G.P. |
| Blank check company formed by ShiftPixy targeting light industrial staffing solutions in North America. | |||
| Insurity Capital (FMGU) | $500M | SPAC | A.G.P. |
| Blank check company formed by ShiftPixy targeting an insurance shell with products for staffing companies. | |||
| TechStackery (TSYU) | $250M | SPAC | A.G.P. |
| Blank check company formed by ShiftPixy targeting staffing solutions in the North American tech sector. | |||
| Vital Human Capital (VITU) | $250M | SPAC | A.G.P. |
| Blank check company formed by ShiftPixy targeting healthcare staffing solutions in North America. | |||
| Mountain Crest Acq. III (MCAEU) | $50M | SPAC | Chardan |
| Third blank check company formed by Suying Liu targeting North American businesses. | |||
| Paycor HCM (PYCR) | $100M | Technology | Goldman |
| Provides a SaaS human capital management platform for SMBs. | |||
| Zeta Global (ZETA) | $100M | Technology | Morgan Stanley |
| Offers a customer data platform with automated marketing and advertising tools. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/29/2021, the Renaissance IPO Index was down 2.2% year-to-date, while the S&P 500 was up 12.1%. 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 0.2% year-to-date, while the ACWX was up 8.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou Technology and Nexi.
