Eight IPOs and four SPACs went public this past week. One IPO postponed, UK-based biotech Gyroscope Therapeutics (VISN), citing market conditions. Filing activity maintained a comfortable pace/remained moderate, with seven IPOs and 10 SPACs submitting initial filings.
The week’s best performer, Sacramento bank Five Star Bancorp (FSBC) priced at the high end to raise $105 million at a $325 million market cap. The bank serves the greater Sacramento MSA through its seven branches and two loan offices, focusing on commercial real estate lending. While large money center banks control the majority of deposits in the area, the bank has more than doubled its share since 2016. Five Star finished up 25%.
Non-toxic lifestyle brand The Honest Company (HNST) priced slightly above the midpoint to raise $413 million at a $1.6 billion market cap. Co-founded by actress Jessica Alba, the company offers baby care, skin and personal care, and household and wellness products. The company saw solid growth in 2020, though it has a history of losses and negative free cash flow, and insiders sold a majority of the IPO. Honest finished up 19%.
French-listed biotech Valneva (VALN) priced within the range to raise $94 million at a $1.4 billion market cap. Valneva has successfully commercialized vaccines for Japanese Encephalitis and Cholera. Its clinical portfolio contains lead program VLA15, a vaccine targeting Borrelia (Lyme disease) under development in collaboration with Pfizer, which is currently in Phase 2 trials. Valneva finished up 12%.
Cannabinoid overdose biotech Anebulo Pharmaceuticals (ANEB) priced at the midpoint to raise $21 million at a $163 million market cap. The company’s lead candidate is intended to reverse the negative effect of cannabinoid overdose within 1 hour of administration. The company expects to begin a Phase 2 proof-of-concept trial for cannabinoid overdose in the Netherlands in the 4Q21. Anebulo finished up 1%.
After delaying pricing by a day, professional services firm Bowman Consulting Group (BWMN) upsized and priced at the high end to raise $52 million at a $153 million market cap. The company offers planning, engineering, construction management, commissioning, environmental consulting, land procurement, and other services to over 2,200 clients in diverse end markets. Bowman finished flat.
Chinese e-commerce platform Onion Global (OG) downsized and priced at the low end to raise $68 million at a $728 million market cap. Onion Global’s platform offers more than 4,000 beauty, maternal and baby, fashion, and food and beverage brands to buyers across Asia. The company is profitable with strong growth, though it faces significant competition from larger players. Onion Global finished down 3%.
Cell therapy biotech Talaris Therapeutics (TALS) priced at the midpoint to raise $150 million at a $736 million market cap. Its lead candidate is a novel allogeneic cell therapy comprised of stem and immune cells that are procured from a healthy donor. The company is currently enrolling patients for a Phase 3 registration trial in the US in adult living donor kidney transplant recipients. Talaris finished down 4%.
Chinese health insurance platform Waterdrop (WDH) priced at the high end to raise $360 million at a $5.1 billion market cap. Unprofitable with explosive growth, the company was China’s #2 third-party life and health insurance broker by first year premiums in 2020, and its #1 medical crowdfunding platform by funds raised. Waterdrop finished down 19%.
Four SPACs raised $610 million led by Valor Latitude Acquisition (VLATU), which raised $200 million to acquire a tech-enabled Latin American business.
| 12 IPOs During the Week of May 3rd, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 05/07 |
| Five Star Bancorp (FSBC) | $105M | $325M | 5% | +21% | +25% |
| California bank with seven branches and two loan production offices. | |||||
| The Honest Company (HNST) | $413M | $1,646M | 3% | +44% | +19% |
| Non-toxic lifestyle brand of baby, skin, and household products. | |||||
| Valneva (VALN) | $94M | $1,395M | -6% | +7% | +12% |
| Commercial-stage French biotech developing vaccines for infectious diseases. | |||||
| Anebulo Pharmaceuticals (ANEB) | $21M | $163M | 0% | +1% | +1% |
| Phase 2 biotech developing treatments for cannabinoid overdose and substance addiction. | |||||
| Data Knights Acquisition (DKDCU) | $100M | $130M | 0% | +1% | +1% |
| Blank check company focusing on the data centers and internet technology sectors. | |||||
| Valor Latitude Acq. (VLATU) | $200M | $250M | 0% | +0% | +0% |
| Blank check company formed by Valor Capital Group targeting tech-enabled Latin American businesses. | |||||
| B. Riley Principal 250 (BRIVU) | $150M | $193M | 0% | +0% | +0% |
| Fourth blank check company formed by diversified financial services firm B. Riley Financial. | |||||
| Bowman Consulting Group (BWMN) | $52M | $153M | 8% | +0% | +0% |
| Provides engineering-focused professional services. | |||||
| Maquia Capital Acq. (MAQCU) | $160M | $204M | 0% | +0% | +0% |
| Blank check company targeting tech-focused middle market and emerging growth businesses in North America. | |||||
| Onion Global (OG) | $68M | $728M | -12% | -3% | -3% |
| Chinese e-commerce platform using influencers to sell lifestyle brands in Asia. | |||||
| Talaris Therapeutics (TALS) | $150M | $736M | 0% | -4% | -4% |
| Phase 3 biotech developing allogeneic cell therapies for organ transplant recipients. | |||||
| Waterdrop (WDH) | $360M | $5,061M | 9% | -19% | -19% |
| Operates a health insurance distribution and crowd-funding platform in China. | |||||
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Seven IPOs submitted initial filings. Payment processors dLocal (DLO) and Flywire (FLYW) filed for estimated $500 million and $300 million IPOs, respectively. Healthcare apparel brand FIGS (FIGS), pediatric oncology biotech Day One Biopharmaceuticals (DAWN), shopping center REIT Phillips Edison (PECO), and next-gen sequencing tech developer Singular Genomics Systems (OMIC) all filed to raise $100 million. Chinese education provider Golden Sun Education Group (GSUN) filed to raise $23 million.
10 SPACs submitted initial filings led by mobility tech-focused Ascendant Mobility Acquisition I (AMAU.RC), which filed to raise $350 million.
| 17 Filings During the Week of May 3rd, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Dynamics Special Purpose (DYNS) | $200M | SPAC | JP Morgan |
| Blank check company led by biotech entrepreneurs targeting the life sciences industry. | |||
| Fintech Ecosystem Dev. (FEXD.U) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting the fintech sector in South Asia. | |||
| Golden Sun Education (GSUN) | $23M | Consumer Discretionary | Network 1 |
| Operates private schools and provides education services in the Yangtze River Delta. | |||
| Lakeview Acquisition (LKVA.U) | $250M | SPAC | BofA |
| Blank check company formed by Transverse Insurance Group targeting the US insurance sector. | |||
| Serendipity Capital Acq. (SCAC.U) | $250M | SPAC | Goldman (Asia) |
| Blank check company formed by Serendipity Capital targeting an APAC-focused financials business. | |||
| Singular Genomics Systems (OMIC) | $100M | Health Care | JP Morgan |
| Developing novel next generation sequencing and multiomics technologies. | |||
| World Quantum Growth Acq. (WQGA.U) | $300M | SPAC | Credit Suisse |
| Blank check company led by the former LSEG CEO targeting the financials sectors in the US and EMEA. | |||
| Blue Safari Group Acq. (BSGAU) | $50M | SPAC | Maxim |
| Chinese blank check company targeting fintech and related business services companies. | |||
| Mericsson Acquisition (MLXAU) | $40M | SPAC | Maxim |
| Blank check company targeting media, advertising, and entertainment in Asia. | |||
| Phillips Edison (PECO) | $100M | Real Estate | Morgan Stanley |
| REIT focused on grocery-anchored neighborhood shopping centers. | |||
| dLocal (DLO) | $500M | Technology | JP Morgan |
| Provides a cross-border payment processing platform for e-commerce. | |||
| FIGS (FIGS) | $100M | Consumer Discretionary | Goldman |
| Medical scrubs and healthcare apparel brand. | |||
| Reinvent Tech Partners X (RTPX) | $220M | SPAC | Morgan Stanley |
| Blank check company formed by Reid Hoffman and Mark Pincus targeting the tech sector. | |||
| Day One Biopharma (DAWN) | $100M | Health Care | JP Morgan |
| Phase 2 biotech developing treatments for pediatric glioma and other cancers. | |||
| Ascendant Mobility Acq. I (AMAU.RC) | $350M | SPAC | Goldman |
| Blank check company targeting the electric vehicle, energy storage, and mobility tech space. | |||
| Flywire (FLYW) | $300M | Technology | Goldman |
| Provides payment processing software to education, healthcare, travel, and B2B firms. | |||
| Summit Healthcare Acq. (SMIHU) | $200M | SPAC | BofA |
| Blank check company targeting a healthcare business with a strong China nexus. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/6/21, the Renaissance IPO Index was down 13.6% year-to-date, while the S&P 500 was up 11.9%. 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 4.4% 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.
