The IPO market had a tumultuous week with five IPOs and three postponements: Brazilian customer service platform Zenvia (ZENV), mortgage insurance spinoff Enact Holdings (ACT), and hearing care services provider hear.com (HCG). SPAC activity remained steady, with two blank check IPOs raising $430 million. New filers continued to trickle into the pipeline, with five IPOs and six SPACs submitting initial filings.
Cross-border e-commerce platform Global-E Online (GLBE) priced at the high end to raise $375 million at a $4.1 billion market cap. Global-E provides a software platform that makes it easier for e-commerce companies to sell across international borders with services including compliance and shipping. The company is profitable and growing fast, but it is small and may see decelerating growth post-pandemic. Global-E Online finished up 7%.
Israeli web analytics provider Similarweb (SMWB) priced above the range to raise $176 million at a $1.9 billion market cap. This founder-led company provides a software platform that aggregates extensive data from websites and apps to help businesses improve their decision making. Despite strong growth and improving gross margins, the company is small and unprofitable with widening losses. Similarweb finished down 3%.
Immunological disease biotech Vera Therapeutics (VERA) priced well below the range to raise $48 million at a $244 million market cap. This Phase 2 biotech is developing fusion protein treatments for immunological diseases. The company plans to initiate a Phase 2b trial of its lead candidate in IgA nephropathy in the 2Q21, with topline results expected in the 4Q22. Vera finished up 5%.
Cannabis products producer Flora Growth (FLGC) priced at the high end to raise $17 million at a $249 million market cap. This Canada-based company is cultivating and processing medical-grade cannabis oil and other cannabis derived products in Colombia. The company is highly unprofitable and just began generating revenues this past August. Flora finished down 19%.
Hydroponic equipment supplier iPower (IPW) priced below the downwardly revised range to raise $17 million at a $128 million market cap. Fast growing and profitable, iPower supplies hydroponic equipment through its online retail store and through third party distribution channels such as Amazon, eBay, and Walmart. iPower finished up 16%.
Two blank check companies went public this past week: Fortinbras Enterprises’ SPAC Osiris Acquisition (OSI.U), which raised $230 million, and biotech and life science-focused SPAC Orion Biotech Opportunities (ORIAU), which raised $200 million.
| 7 IPOs During the Week of May 10th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 05/14 |
| iPower (IPW) | $17M | $128M | -50% | +15% | +16% |
| Online hydroponic equipment supplier. | |||||
| Global-E Online (GLBE) | $375M | $4,140M | 4% | +2% | +7% |
| Provides a platform for cross-border e-commerce. | |||||
| Vera Therapeutics (VERA) | $48M | $244M | -27% | +5% | +5% |
| Phase 2b biotech developing fusion proteins for immunological diseases. | |||||
| Orion Biotech Opp. (ORIAU) | $200M | $250M | 0% | +1% | +0% |
| Blank check company formed by MSD Partners and Panacea Venture targeting the biotech and life science sectors. | |||||
| Osiris Acquisition (OSI.U) | $230M | $288M | 0% | -1% | -1% |
| Blank check company formed by Fortinbras Enterprises. | |||||
| Similarweb (SMWB) | $176M | $1,861M | 10% | -1% | -3% |
| Provides a freemium platform for website traffic analytics. | |||||
| Flora Growth (FLGC) | $17M | $249M | 11% | -4% | -19% |
| Canadian developer of low-cost cannabis products in Colombia. | |||||
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Five IPOs submitted initial filings this past week. Chinese freight platform ForU Worldwide (FOYO), Chinese social networking platform Soulgate (SSR), and payments startup Marqeta (MQ) all filed to raise $100 million. Medical device developer Femasys (FEMY) filed to raise $40 million. Preclinical Alzheimer’s biotech Alzamend Neuro (ALZN) filed to raise $12 million.
Seven SPACs submitted initial filings led by renewable energy-focused SPAC M3-Brigade Acquisition III (MTBAU.RC), which filed to raise $400 million.
| 12 Filings During the Week of May 10th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Femasys (FEMY) | $40M | Health Care | Chardan |
| Developing products and medical devices for women's healthcare. | |||
| Freestone Acquisition (FSTNU) | $200M | SPAC | Barclays |
| Blank check company formed by Tailwater Capital targeting the energy transition space. | |||
| Marqeta (MQ) | $100M | Technology | Goldman |
| Operates an open API payment card issuing and payment platform. | |||
| Bridgetown 3 Holdings (BTNC) | $260M | SPAC | Citi |
| Third blank check company formed by Pacific Century and Thiel Capital targeting new economy sectors in Southeast Asia. | |||
| ForU Worldwide (FOYO) | $100M | Industrials | Goldman |
| Operates a tech-driven road freight transportation platform in China. | |||
| Larkspur Health Acq. (LSPRU) | $75M | SPAC | A.G.P. |
| Blank check company focused on the US biotechnology sector. | |||
| XPAC Acquisition (XPAXU) | $200M | SPAC | Citi |
| Brazil-focused blank check company formed by Brazilian financial services firm XP. | |||
| M3-Brigade Acq. III (MTBAU.RC) | $400M | SPAC | Cantor Fitz. |
| Third blank check company led by turnaround veteran Mohsin Meghji targeting the renewable energy space. | |||
| LTV Capital Partners I (LTVAU) | $215M | SPAC | Citi |
| Blank check company targeting businesses with high growth tech-enabled platforms. | |||
| Seven Islands (SVNIU) | $300M | SPAC | Goldman (Asia) |
| Blank check company targeting businesses in South and Southeast Asia. | |||
| Alzamend Neuro (ALZN) | $12M | Health Care | Spartan Securities |
| Preclinical biotech developing therapies for Alzheimer's disease. | |||
| Soulgate (SSR) | $100M | Technology | Morgan Stanley |
| Provides the gamified social networking app Soul in China. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/13/2021, the Renaissance IPO Index was down 16.0% year-to-date, while the S&P 500 was up 9.5%. 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 7.1% year-to-date, while the ACWX was up 5.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and Kuaishou Technology.
