Just one IPO entered public markets after the holiday
weekend, but the pipeline remained active, with 14 IPOs and 10 SPACs submitting
initial filings.
Cross-border payment processor dLocal (DLO) priced well above the range to raise $618 million at
a $6.2 billion market cap. The Uruguay-based company provides a safe and simple
platform for global merchants to make and receive payments. The company has
grown rapidly in recent periods and has high customer retention rates, but
generates a large portion of revenue from a concentrated group of customers.
dLocal finished the week up 64%.
There were no SPAC pricings this week. However, Bill
Ackman’s SPAC Pershing Square Tontine Holdings
(PSTH.U) made headlines: The blank check company is reportedly in talks to
acquire a stake in leading record label Universal Music Group that would value
the company at $40+ billion.
| 1 IPO During the Week of May 31st, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 06/04 |
| dLocal (DLO) | $618M | $6,151M | 24% | +54% | +64% |
| Provides payment processing for global merchants in emerging markets. | |||||
14 IPOs submitted initial filings. Data-streaming platform Confluent (CFLT) filed for an estimated $400 million IPO, and leading national car was brand Mister Car Wash (MCW) filed to raise an estimated $250 million. Donut shop retailer and franchisor Krispy Kreme (DNUT), DMT-based depression biotech GH Research (GHRS), gene editing biotech Graphite Bio (GRPH), professional and financial software platform Intapp (INTA), legal and compliance platform LegalZoom.com (LZ), digital ad verification platform Integral Ad Science (IAS), online manufacturing marketplace Xometry (XMTR), automated cybersecurity platform SentinelOne (S, and preclinical cancer biotech Monte Rosa Therapeutics (GLUE) all filed to raise $100 million. Biopharmaceutical reagent provider Alpha Teknova (TKNO) and cardiovascular neuromodulation device provider CVRx (CVRX) both filed to raise $75 million. South-Floridian fuel delivery app EzFill Holdings (EZFL) filed to raise $25 million.
10 SPACs submitted initial filings, including four biotech SPACs led by SPAC veteran and CEO of Social Capital Chamath Palihapitiya, and Suvretta Capital Management Porfolio Manager Krishen Mehta. The four SPACs, Social Capital Suvretta Holdings I (DNAA), Social Capital Suvretta Holdings II (DNAB), Social Capital Suvretta Holdings III (DNAC), and Social Capital Suvretta Holdings IV (DNAD), will each focus on a specific set of indications.
| 25 Filings During the Week of May 31st, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Alpha Teknova (TKNO) | $75M | Health Care | Cowen |
| Provider of reagents and other materials for biopharmaceutical applications. | |||
| CVRx (CVRX) | $75M | Health Care | JP Morgan |
| Commercial stage provider of neuromodulation therapies for cardiovascular diseases. | |||
| Elevation Oncology (ELEV) | $100M | Health Care | JP Morgan |
| Phase 2 biotech developing antibodies for genetically-defined cancers. | |||
| GH Research (GHRS) | $100M | Health Care | Cowen |
| Phase 2 biotech developing DMT-based therapies for depression. | |||
| GoGreen Investments (GOGN.U) | $250M | SPAC | Citi |
| Blank check company targeting the energy transition space. | |||
| Graphite Bio (GRPH) | $100M | Health Care | Morgan Stanley |
| Early stage biotech developing gene editing therapies for sickle cell and other diseases. | |||
| Intapp (INTA) | $100M | Technology | JP Morgan |
| Provides application software for professional and financial services. | |||
| Integral Ad Science (IAS) | $100M | Technology | Morgan Stanley |
| Provides a digital advertising measurement and verification platform. | |||
| L Catterton LatAm Acq. (LCLA.U) | $200M | SPAC | Credit Suisse |
| Blank check company formed by L Catterton targeting high-growth consumer sectors in Latin America. | |||
| LegalZoom.com (LZ) | $100M | Industrials | JP Morgan |
| Provides legal and compliance solutions in the US. | |||
| Monte Rosa Therapeutics (GLUE) | $100M | Health Care | JP Morgan |
| Preclinical biotech developing small molecule protein degraders for cancer and other diseases. | |||
| Mount Rainier Acquisition (RNERU) | $150M | SPAC | A.G.P. |
| Blank check company targeting established tech-focused businesses. | |||
| UK Wisdom (UKWIU) | $50M | SPAC | Maxim |
| Blank check company formed by Ucommune International targeting businesses in Asia. | |||
| Xometry (XMTR) | $100M | Technology | Goldman |
| Operates an online marketplace for on-demand manufacturing. | |||
| SentinelOne (S) | $100M | Technology | Morgan Stanley |
| Provides an automated cybersecurity threat detection and response platform. | |||
| Mister Car Wash (MCW) | $250M | Consumer Discretionary | BofA |
| Leading national car wash brand with 344 locations across the US. | |||
| Northern Lights Acq. (NLITU) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting the cannabis industry. | |||
| Social Cap. Suvretta II (DNAB) | $200M | SPAC | Morgan Stanley |
| Second blank check company formed by Chamath Palihapitiya and Kishen Mehta targeting the biotech sector. | |||
| Social Cap. Suvretta III (DNAC) | $200M | SPAC | Morgan Stanley |
| Third blank check company formed by Chamath Palihapitiya and Kishen Mehta targeting the biotech sector. | |||
| Social Cap. Suvretta IV (DNAD) | $200M | SPAC | Morgan Stanley |
| Fourth blank check company formed by Chamath Palihapitiya and Kishen Mehta targeting the biotech sector. | |||
| Social Capital Suvretta I (DNAA) | $200M | SPAC | Morgan Stanley |
| Blank check company formed by Chamath Palihapitiya and Kishen Mehta targeting the biotech sector. | |||
| Confluent (CFLT) | $400M | Technology | Morgan Stanley |
| Provides a real-time data streaming platform. | |||
| EzFill Holdings (EZFL) | $25M | Energy | ThinkEquity |
| Provides on demand fuel delivery services via mobile app in South Florida. | |||
| Krispy Kreme (DNUT) | $100M | Consumer Discretionary | JP Morgan |
| Owns, operates, and franchises doughnut shops. | |||
| M3-Brigade Acquisition IV (MBD.U) | $200M | SPAC | Cantor Fitz. |
| Fourth blank check company led by turnaround veteran Mohsin Meghji targeting the renewable energy space. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets< of newly public companies. As of 6/3/21, the Renaissance IPO Index was down 6.0% year-to-date, while the S&P 500 was up 11.6%. 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 1.1% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and EQT Partners.
