After a slow start to the month, the IPO market revved back to life with 13 IPOs coming to market this past week. SPAC activity picked up, with seven blank check IPOs raising $940 million. New filers continued to flood the IPO pipeline, with fourteen IPOs and nine SPACs submitting initial filings.
Italian drug container supplier Stevanato Group (STVN) downsized and priced at the low end to raise $672 million at a $6.2 billion market cap. This container supplier produces glass vials, syringes, and other containers for over 700 companies within the pharmaceutical and life sciences industry. The company is highly profitable with positive cash flow, but growth may be impacted by lower demand post-pandemic. Stevanato Group finished down 6%.
Shopping center REIT Phillips Edison (PECO) priced at the low end to raise $476 million at a $3.5 billion market cap. This REIT owns equity interests in 300 shopping centers across the US, focusing on locations that are anchored by grocers like Kroger and Publix. The company is targeting a 3.5% annual yield, and is highly leveraged post-IPO. Phillips Edison finished about flat.
Luxury social club operator Membership Collective Group (MCG) priced at the low end to raise $420 million at a $3.0 billion market cap. Known for its member-only luxury hotel brand Soho House, the company boasts a large and loyal member base, though it has no track record of profitability and saw revenue fall by almost half in the 1Q21. Membership Collective finished down 11%.
Consumer banking platform Blend Labs (BLND) priced at the high end to raise $360 million at a $4.8 billion market cap. The company provides a software platform to financial services companies that offer mortgages and consumer loans. While it is dependent on home purchase activity which can be lumpy and seasonal, the company posted explosive revenue growth in the 1Q21. Blend Labs finished up 16%.
F45 Training (FXLV) priced at the midpoint to raise $325 million at a $1.5 billion market cap. This Mark Wahlberg-backed fitness franchise offers 45-minutes workouts across a global network of studios. While the pace of recovery is uncertain post-pandemic, the company signed over 550 new studio franchises in the 2Q21. F45 Training finished up 1%.
Real estate investor Bridge Investment Group (BRDG) priced at the midpoint to raise $300 million at a $1.8 billion market cap. This investment manager specializes in real estate equity and debt across multiple sectors. As of 3/31/21, Bridge Investment Group had approximately $26 billion in AUM with more than 6,500 individual investors across 25 investment vehicles. Bridge Investment Group finished down 2%.
Oncology biotech Erasca (ERAS) upsized and priced at the high end to raise $300 million at a $2.1 billion market cap. This biotech is developing therapies for RAS/MAPK pathway-driven cancers. Its lead candidate is in-licensed from Asana and is currently in Phase 2 trials for solid tumors. Erasca finished up 9%.
Medical device maker Sight Sciences (SGHT) upsized and priced at the high end to raise $240 million at a $1.2 billion market cap. The company develops and sells medical and surgical devices for eye diseases. The highly unprofitable company saw accelerating growth in the 1Q21 after the pandemic delayed elective procedures in 2020. Sight Sciences finished up 36%.
Microbial testing device Rapid Micro Biosystems (RPID) upsized and priced at the high end to raise $158 million at an $899 million market cap. Highly unprofitable with negative gross margins, the company provides an automated microbial testing device and platform for use within the pharmaceutical manufacturing industry. Rapid Micro Biosystems finished up 21%.
Bone marrow disease biotech Imago BioSciences (IMGO) upsized and priced at the high end to raise $134 million at a $556 million market cap. This biotech is developing small molecule therapies for the treatment of bone marrow diseases and cancer. Its lead candidate is currently in Phase 2 trials for essential thrombocythemia and has shown positive preliminary results. Imago Biosciences finished up 2%.
Preclinical cancer biotech TScan Therapeutics (TCRX) priced at the low end to raise $100 million at a $384 million market cap. This biotech is genetically engineering T cell therapies for the treatment of cancer. The company plans to submit INDs for its lead two liquid tumor candidates in the 4Q21 and INDs for at least three of its four solid tumor candidates in the 2H22. TScan Therapeutics finished down 30%.
Pregnancy diagnostic company Sera Prognostics (SERA) priced at the midpoint to raise $75 million at a $564 million market cap. The company uses its proteomics and bioinformatics platform to develop biomarker tests aimed at improving pregnancy outcomes. Sera Prognostics’ sole commercial product predicts the risk of a premature delivery, though it has yet to generate meaningful revenue. Sera Prognostics finished down 31%.
Chinese drug developer Regencell Bioscience (RGC) priced at the midpoint to raise $22 million at a $120 million market cap. This early-stage company develops traditional Chinese medicines (TCM) for the treatment of neurocognitive disorders such as ADHD and autism. It currently has three TCM formula candidates in development. Regencell finished up 11%.
Seven blank check companies raise $940 million this past week, led by Asia Pacific-focused SPAC StoneBridge Acquisition (APACU), which raised $200 million.
| 20 IPOs During the Week of July 12th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/16 |
| Sight Sciences (SGHT) | $240M | $1,193M | 12% | +40% | +36% |
| Provides medical and surgical devices for underserved eye diseases. | |||||
| Rapid Micro Biosystems (RPID) | $158M | $899M | 5% | +7% | +21% |
| Provides an automated microbial testing device and platform. | |||||
| Blend Labs (BLND) | $360M | $4,756M | 6% | +16% | +16% |
| Provides a digital platform for lenders to offer mortgages and consumer loans. | |||||
| Regencell Bioscience (RGC) | $22M | $120M | 0% | +11% | +11% |
| Developing formulations of traditional Chinese medicine for ADHD and autism. | |||||
| Erasca (ERAS) | $300M | $2,068M | 7% | +9% | +9% |
| Phase 2 biotech developing therapies for RAS/MAPK pathway-driven cancers. | |||||
| Imago BioSciences (IMGO) | $134M | $556M | 7% | +2% | +2% |
| Phase 2 biotech developing small molecules for bone marrow cancer and diseases. | |||||
| CleanTech Acquisition (CLAQU) | $150M | $188M | 0% | +1% | +1% |
| Blank check company targeting the CleanTech and ClimateTech sectors. | |||||
| F45 Training (FXLV) | $325M | $1,488M | 0% | +1% | +1% |
| Global fitness franchise offering 45-minute workouts. | |||||
| ARYA Sciences Acq. V (ARYE) | $130M | $167M | 0% | +1% | +0% |
| Fifth healthcare-focused blank check company formed by Perceptive Advisors. | |||||
| Phillips Edison (PECO) | $476M | $3,489M | -5% | -1% | +0% |
| REIT focused on grocery-anchored neighborhood shopping centers. | |||||
| Black Spade Acquisition (BSAQ.U) | $150M | $188M | 0% | +0% | +0% |
| Blank check company targeting the entertainment industry in China. | |||||
| JATT Acquisition (JATT.U) | $120M | $150M | 0% | -1% | +0% |
| Blank check company targeting life sciences technology. | |||||
| TradeUP Acquisition (UPTDU) | $40M | $52M | 0% | +0% | +0% |
| Blank check company targeting technology businesses operating in various sectors. | |||||
| StoneBridge Acquisition (APACU) | $200M | $250M | 0% | +0% | +0% |
| Blank check company targeting "new economy sectors" in Asia Pacific. | |||||
| Bilander Acquisition (TWCBU) | $150M | $200M | 0% | -1% | -1% |
| Fifth blank check company formed by True Wind Capital targeting the tech sector. | |||||
| Bridge Investment Group (BRDG) | $300M | $1,790M | 0% | -2% | -2% |
| Vertically-integrated real estate investment manager with $26 billion in AUM. | |||||
| Stevanato Group (STVN) | $672M | $6,191M | -7% | -6% | -6% |
| Italian supplier of glass vials, syringes, and other pharmaceutical containers. | |||||
| Membership Collective (MCG) | $420M | $2,961M | -7% | -10% | -11% |
| Operates members-only luxury hotels and clubs under the Soho House brand. | |||||
| TScan Therapeutics (TCRX) | $100M | $384M | -6% | -30% | -30% |
| Preclinical biotech developing engineered T cell cancer therapies. | |||||
| Sera Prognostics (SERA) | $75M | $564M | 0% | -26% | -31% |
| Develops diagnostic tests for pregnancy complications. | |||||
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Fourteen IPOs submitted initial filings this past week. Outdoor grilling brand Weber (WEBR) filed to raise $1 billion. Wellness company Thorne Healthtech (THRN) filed to raise $200 million. First responder equipment provider Cadre Holdings (CDRE) filed to raise $144 million. Healthcare platform Everside Health Group (EVSD), fresh food grocer The Fresh Market (TFM), infectious disease biotech Adagio Therapeutics (ADGI), rare disease biotech Castle Creek Biosciences (CCBS), Canadian consumer products company Knowlton (KDC), and hair removal salon franchise European Wax Center (EWCZ) all filed to raise $100 million. Phase 2 biotech Eliem Therapeutics (ELYM) filed to raise $80 million. Chinese education platform Jianzhi Education Technology Group (JETG.RC), and Utah-based digital bank FinWise Bancorp (FINW) both filed to raise $50 million. Regional commercial bank U.S. Century Bank (USCB) filed to raise $40 million. Regional Alabama bank Southern States Bank (SSBK) filed to raise $35 million.
Nine SPACs submitted initial filings, led by Carnelian Energy Capital’s third SPAC Peridot Acquisition III (PRDT.U), which filed to raise $300 million, and renewable energy-focused Enphys Acquisition (NFYS.U), which filed to raise $250 million.
| 23 Filings During the Week of July 12th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Adagio Therapeutics (ADGI) | $100M | Health Care | Morgan Stanley |
| Phase 1 biotech developing antibody therapies for COVID-19 and other infectious diseases. | |||
| Aquarius II Acquisition (AQUBU) | $50M | SPAC | EF Hutton |
| Second blank check company formed by Lion Group Holding. | |||
| Castle Creek Biosciences (CCBS) | $100M | Health Care | Citi |
| Phase 3 biotech developing cell-based gene therapies for rare diseases. | |||
| Eliem Therapeutics (ELYM) | $80M | Health Care | SVB Leerink |
| Phase 2a biotech developing therapies for neuronal excitability disorders. | |||
| Everside Health Group (EVSD) | $100M | Health Care | Morgan Stanley |
| Provides a nationwide in-person and virtual primary health care platform. | |||
| Golden Ventures Acq. (GVAC.U) | $100M | SPAC | EF Hutton |
| Blank check company targeting the commodities space. | |||
| The Fresh Market (TFM) | $100M | Consumer Staples | Credit Suisse |
| Apollo-backed fresh food grocer with over 150 stores in 22 states. | |||
| Thorne Healthtech (THRN) | $200M | Health Care | BofA |
| Offers a suite of personalized dietary supplements. | |||
| Abri SPAC I (ASPAU) | $50M | SPAC | Chardan |
| Blank check company targeting FinTech and InsurTech businesses. | |||
| Banner Acquisition (BNNRU) | $150M | SPAC | BofA |
| Blank check company backed by Banner Ventures. | |||
| Enphys Acquisition (NFYS.U) | $250M | SPAC | Credit Suisse |
| Blank check company targeting renewable energy businesses in Ibero-America. | |||
| FinWise Bancorp (FINW) | $50M | Financials | Piper Sandler |
| Utah-based digital bank that offers loan and deposit services across the US. | |||
| Southern States Bank (SSBK) | $35M | Financials | KBW |
| Alabama bank with 15 branches in Alabama and Georgia. | |||
| U.S. Century Bank (USCB) | $40M | Financials | KBW |
| Regional commercial bank in the Miami-Dade MSA. | |||
| Peridot Acquisition III (PRDT.U) | $300M | SPAC | BofA |
| Third blank check company formed by Carnelian Energy Capital targeting "mitigation and adaptation". | |||
| Sachem Acquisition (SCEMU) | $50M | SPAC | EF Hutton |
| Blank check company formed by Sachem Capital targeting the real estate sector. | |||
| European Wax Center (EWCZ) | $100M | Consumer Discretionary | Morgan Stanley |
| Franchised chain of hair removal salons. | |||
| Global Technology Acq. I (GTACU) | $150M | SPAC | Citi |
| Blank check company targeting fintech and SaaS. | |||
| Jianzhi Education Tech (JETG.RC) | $50M | Technology | AMTD Global |
| Provides an online learning platform and educational content in China. | |||
| Cadre Holdings (CDRE) | $144M | Industrials | Stifel |
| Provides safety and survivability equipment for first reponders. | |||
| Knowlton (KDC) | $100M | Consumer Staples | Goldman |
| Canadian maker of home and personal care products. | |||
| Metals Acquisition (MTAL.U) | $250M | SPAC | Citi |
| Blank check company targeting green-economy-focused metals and mining businesses. | |||
| Weber (WEBR) | $1,000M | Industrials | Goldman |
| Leading outdoor grilling brand. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/15/2021, the Renaissance IPO Index was down 5.4% year-to-date, while the S&P 500 was up 16.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Palantir Technologies (PLTR). The Renaissance International IPO Index was down 2.7% year-to-date, while the ACWX was up 8.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Smoore International and EQT Partners.
