10 IPOs and nine SPACs went public this past week as the IPO market continues to heat up heading into summer. The IPO pipeline stayed active as well, with 12 IPOs and seven SPACs submitting initial filings.
Payment card platform Marqeta (MQ) priced above the range to raise $1.2 billion at a $15.4 billion market cap. Marqeta provides an open API platform for card issuing and digital payments. The company saw total processing volume triple in both 2019 and 2020 and demonstrated positive EBITDA in the MRQ, but its revenue stream is highly concentrated, and it faces rising competition. Marqeta finished up 17%.
Chinese recruitment platform Kanzhun (BZ) priced at the high end to raise $912 million at an $8.6 billion market cap. Kanzhun's core product, BOSS Zhipin, is a mobile-native platform that promotes direct chats between job seekers and enterprise clients. Fast growing and unprofitable, the company claims it was the largest online recruitment platform in China by MAUs in 2020. Kanzhun finished up 96%.
LifeStance Health Group (LFST) priced above the range to raise $720 million at a $6.8 billion market cap. LifeStance is one of the largest outpatient mental health providers in the US, with 370 centers across 73 MSAs in 27 states. While its expansion strategy is aggressive and carries execution risk, the company has achieved rapid growth at scale and solid cash flow generation. LifeStance finished up 33%.
Israeli software provider monday.com (MNDY) priced above the range to raise $574 million at a $7.9 billion market cap. The company provides a platform that can adapt to suit virtually any use case, and its broad applicability creates a large market opportunity. While the company has demonstrated strong growth, its heavy spending on S&M has driven losses. monday.com finished up 22%.
TaskUs (TASK) priced at the midpoint to raise $304 million at a $2.5 billion market cap. Acquired by Blackstone in 2018, TaskUs provides outsourced customer support and business services to high-growth technology firms. Profitable with strong margins, the company is targeting a large market opportunity, though it faces significant competition and its revenue stream is concentrated. TaskUs finished up 35%.
Marketing platform Zeta Global Holdings (ZETA) downsized and priced at the low end to raise $215 million at a $1.9 billion market cap. Zeta offers a consumer intelligence and marketing automation platform with the goal of delivering actionable insights. While the company has generated positive EBITDA and cash flow, third-party media fees have weighed on gross margin. Zeta finished down 17%.
Janux Therapeutics (JANX) upsized and priced at the high end to raise $194 million at a $728 million market cap. The company’s initial focus is on developing a novel class of T cell engagers, and its lead candidates are designed to target clinically validated drug targets. The company expects to submit at least two INDs by the end of 2022. Janux finished up 48%.
Online luxury goods marketplace 1stdibs.com (DIBS) priced within the range to raise $115 million at a $794 million market cap. While the company remains unprofitable due to high S&M spend, 1stDibs has demonstrated strong revenue and GMV growth, and it operates an asset-light model with no inventory risk. 1stDibs finished up 21%.
Canada-listed AcuityAds Holdings (ATY) raised $50 million at a $605 million market cap. AcuityAds’ technology allows for near real-time reporting and analytics. It also enables automated buying and selling of advertising inventory through its platform illumin, which was introduced in October 2020. AcuityAds finished up 14%.
Chinese edtech Zhangmen Education (ZME) priced within the range to raise $42 million at a $1.9 billion market cap. The deal was pre-bought by new and existing shareholders, which had indicated on 92% of the IPO. Zhangmen states that it has been the largest online K-12 tutoring service provider in China by revenue since 2017, claiming a 32% market share in 2020. Zhangmen finished up 17%.
In the busiest week for SPACs since March, nine blank check companies went public, led by former UPS executive’s Logistics Innovation Technologies (LITTU), which raised $300 million.
| 19 IPOs During the Week of June 7th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 06/11 |
| Kanzhun (BZ) | $912M | $8,644M | 6% | +96% | +96% |
| Leading online recruitment platform in China. | |||||
| Janux Therapeutics (JANX) | $194M | $728M | 6% | +48% | +48% |
| Preclinical biotech developing novel T cell engagers for solid tumors. | |||||
| TaskUs (TASK) | $304M | $2,507M | 0% | +35% | +35% |
| Provides outsourced customer support and content review services to tech firms. | |||||
| LifeStance Health (LFST) | $720M | $6,845M | 13% | +22% | +33% |
| Provides outpatient mental health services. | |||||
| monday.com (MNDY) | $574M | $7,929M | 17% | +15% | +22% |
| Provides a modular project management software platform. | |||||
| 1stDibs (DIBS) | $115M | $794M | 3% | +43% | +21% |
| Online marketplace for furniture, art, antiques, and other luxury goods. | |||||
| Zhangmen Education (ZME) | $42M | $1,858M | -4% | +48% | +17% |
| Chinese online after-school tutoring platform. | |||||
| Marqeta (MQ) | $1,227M | $15,353M | 23% | +13% | +17% |
| Provides an open API platform for card issuing and digital payments. | |||||
| AcuityAds (ATY) | $50M | $605M | 0% | +1% | +14% |
| Canadian targeted advertising and insights platform. | |||||
| Jaws Hurricane Acq. (HCNEU) | $275M | $344M | 0% | +1% | +1% |
| Sixth blank check company led by Starwood Capital founder Barry Sternlicht. | |||||
| SPK Acquisition (SPKAU) | $50M | $65M | 0% | +0% | +0% |
| Blank check company targeting an Asia-based TMT business. | |||||
| Logistics Innovation Tech (LITTU) | $300M | $375M | 0% | +0% | +0% |
| Blank check company led by a former UPS executive targeting the logistics industry. | |||||
| Lakeshore Acquisition I (LAAAU) | $50M | $65M | 0% | +0% | +0% |
| Blank check company formed by executives of Shanghai Renaissance Investment Management. | |||||
| Colombier Acquisition (CLBR.U) | $150M | $188M | 0% | -1% | +0% |
| Blank check company targeting the consumer products, social, and entertainment sectors. | |||||
| Iron Spark I (ISAA) | $150M | $188M | 0% | -1% | +0% |
| Blank check company targeting the branded consumer sector. | |||||
| Blue Safari Group Acq. (BSGAU) | $50M | $66M | 0% | +0% | +0% |
| Chinese blank check company targeting fintech and related business services companies. | |||||
| Summit Healthcare Acq. (SMIHU) | $200M | $258M | 0% | +0% | +0% |
| Blank check company targeting a healthcare business with a strong China nexus. | |||||
| Global Consumer Acq. (GACQU) | $170M | $216M | 0% | -1% | -1% |
| Blank check company targeting the consumer products and services sectors. | |||||
| Zeta Global (ZETA) | $215M | $1,926M | -9% | -11% | -17% |
| Offers a customer data platform with automated marketing and advertising tools. | |||||
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12 IPOs submitted initial filings. Reportedly targeting a $100 billion valuation, Xiaoju Kuaizhi (DiDi Chuxing; DIDI) filed for a US IPO that we estimate could raise up to $10 billion. Chinese hotel chain Atour Lifestyle Holdings (ATAT), plus-size women’s fashion retailer Torrid (CURV), Belgian medical device maker Nyxoah (NYXH), Alzheimer’s biotech Acumen Pharmaceuticals (ABOS), drug formulation developer Aerovate Therapeutics (AVTE), preclinical biotech Ocean Biomedical (OCEA), identity verification platform Clear Secure (YOU), and Chinese grocery delivery platforms Dingdong (DDL) and Missfresh (MF) all filed to raise $100 million. Diagnostics company Sera Prognostics (SERA) filed to raise $75 million, and dermatology biotech Dermata Therapeutics (DRMA) filed to raise $18 million.
Seven SPACs submitted initial filings, led by Zimmer Partners’ Zimmer Energy Transition Acquisition (ZTAQU), which filed to raise $300 million.
| 19 Filings During the Week of June 7th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Frontier Investment (FICVU) | $250M | SPAC | JP Morgan |
| Blank check company formed by FIM Partners targeting "new economy" sectors. | |||
| Sera Prognostics (SERA) | $75M | Health Care | Citi |
| Commercial biotech developing diagnostic tests for pregnancy complications. | |||
| UNSDG Acquisition (UNAQU.RC) | $100M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting the decarbonization and digitalization spaces. | |||
| Dermata Therapeutics (DRMA) | $18M | Health Care | Maxim |
| Phase 3-ready biotech developing therapies for skin conditions using freshwater sponge. | |||
| Nyxoah (NYXH) | $100M | Health Care | Piper Sandler |
| Commercializing a nerve stimulator implant for obstructive sleep apnea. | |||
| Xiaoju Kuaizhi (DIDI) | $10,000M | Technology | Goldman (Asia) |
| Operates China's largest ride-hailing network. | |||
| Acumen Pharmaceuticals (ABOS) | $100M | Health Care | BofA |
| Phase 1 biotech developing a monoclonal antibody for Alzheimer's disease. | |||
| Aerovate Therapeutics (AVTE) | $100M | Health Care | Jefferies |
| Developing a dry powder drug formulation for pulmonary arterial hypertension. | |||
| Gobi Acquisition (GOBI) | $250M | SPAC | Citi |
| Blank check company formed by PAG Group targeting businesses with strong APAC connections. | |||
| Ocean Biomedical (OCEA) | $100M | Health Care | Berenberg |
| Preclinical biotech developing therapies for cancer, infections, and other diseases. | |||
| Atour Lifestyle Holdings (ATAT) | $100M | Consumer Discretionary | BofA |
| Upper midscale hotel chain in China. | |||
| Dingdong (DDL) | $100M | Technology | Morgan Stanley |
| On-demand grocery delivery platform in China. | |||
| Foresight Acquisition II (FACQU) | $250M | SPAC | Cowen |
| Blank check company targeting tech-enabled consumer and consumer healthcare businesses. | |||
| Missfresh (MF) | $100M | Technology | JP Morgan |
| Provides an e-commerce platform for grocery delivery. | |||
| Nabors Energy Transition (NETC.U) | $250M | SPAC | Citi |
| Blank check company formed by Nabors Industries targeting the energy transition space. | |||
| Clear Secure (YOU) | $100M | Technology | Goldman |
| Provides a biometric identity verification platform. | |||
| PHP Ventures Acquisition (PPHPU) | $50M | SPAC | Kingswood Cap. Mkts. |
| Blank check company targeting consumer-facing businesses with exposure to Africa. | |||
| Torrid (CURV) | $100M | Consumer Discretionary | Morgan Stanley |
| Plus-size women's fashion retailer spun out of Hot Topic. | |||
| ZET Acquisition (ZTAQU) | $300M | SPAC | Citi |
| Blank check company formed by Zimmer Partners targeting the energy transition and sustainability space. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/10/21, the Renaissance IPO Index was down 4.0% year-to-date, while the S&P 500 was up 12.9%. 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 1.6% year-to-date, while the ACWX was up 11.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Nexi and EQT Partners.
