IPO activity continued at a record pace this past week with 19 IPOs, marking the fourth week in 2021 with at least 17 US IPOs, the most since the year 2000. With the August lull around the corner, the pipeline saw less activity than usual; five IPOs and 13 SPACs submitted initial filings.
Protein therapy platform Absci (ABSI) priced at the midpoint to raise $200 million at a $1.6 billion market cap. Absci currently has nine active programs across seven partners, which include Merck and Astellas, for which it has either negotiated or plans to negotiate license agreements. Highly unprofitable, 90% of its tech development revenue came from a single partner in the 1Q21. Absci finished up 43%.
Couchbase (BASE) upsized and priced above the range to raise $200 million at a $1.2 billion market cap. Couchbase provides a NoSQL database that enables enterprises and developers to build and run applications across the cloud, on-premise, hybrid, or mobile and edge environments. The company has a sticky customer base, though it remains unprofitable due to high S&M costs. Couchbase finished up 42%.
Legal software provider CS Disco (LAW) priced above the upwardly revised range to raise $224 million at a $1.9 billion market cap. Fast growing and unprofitable, DISCO provides a cloud-native, AI-powered platform that simplifies the legal process and case management. The company has improved margins, though they may contract in the near term as expenses increase post-COVID. CS Disco finished up 40%.
Latin America’s VTEX (VTEX) priced above the range to raise $361 million at a $3.8 billion market cap. VTEX operates a B2C e-commerce platform for enterprise customers that natively combines commerce, order management, and marketplace functionality. The company has demonstrated growth, though investments in SG&A and R&D have weighed on profits. VTEX finished up 34%.
Ryan Specialty Group (RYAN) priced at the midpoint to raise $1.3 billion at a $6.1 billion market cap. The company assists in the placement of hard-to-place risks for retail brokers, and the sourcing, onboarding, underwriting, and servicing of those risks for carriers. The company has demonstrated strong organic growth and EBITDAC margin, though it is highly leveraged post-IPO. Ryan Specialty finished up 22%.
Water infrastructure company Core & Main (CNM) priced at the low end to raise $698 million at a $4.8 billion market cap. Profitable with steadily improving margins, Core & Main distributes water infrastructure products that connect 4,500 suppliers to over 60,000 municipal, non-residential, and residential customers. The company is reliant on municipal projects, and it is leveraged post-IPO. Core & Main finished up 19%.
Kaltura (KLTR) priced at the midpoint to raise $150 million at a $1.4 billion market cap. Kaltura provides live, real-time, and on-demand video products to a wide range of businesses including educational institutions, and media and telecom companies. Thanks to the growing adoption of virtual events, the company saw revenue expand in the 1Q21, though gross margin contracted. Kaltura finished up 18%.
HR software provider Paycor HCM (PYCR) priced above the range to raise $426 million at a $4.0 billion market cap. Paycor provides human capital management software to SMBs, covering the payroll process and key HR functionality. While net revenue retention fell in the FY20, the company is targeting a large addressable market and has a track record of profitability. Paycor finished up 17%.
Cell analysis instruments provider Cytek BioSciences (CTKB) upsized and priced at the midpoint to raise $285 million at a $2.3 billion market cap. Cytek’s core products are the Aurora and Northern Lights systems, which are full spectrum flow cytometers that deliver high-resolution cell analysis. Profitable with explosive growth, the company has placed over 750 instruments to over 620 companies around the world as of 3/31/21. Cytek finished up 10%.
Miami community bank U.S. Century Bank (USCB) priced at the low end to raise $40 million at a $183 million market cap. U.S. Century has 11 banking centers and a digital banking platform, offering a range of commercial products and services for SMBs in the Miami-Dade metro area. As of March 31, 2021, total assets were $1.6 billion. U.S. Century Bank finished up 8%.
Fitness franchisor Xponential Fitness (XPOF) downsized and priced below the range to raise $120 million at a $529 million market cap. Xponential Fitness is the largest boutique fitness franchisor in the US with over 1,750 studios operating across nine distinct brands. While the company’s business was impacted by the pandemic in 2020, preliminary 2Q21 results show 60%+ revenue growth and adjusted EBITDA swinging positive. Xponential finished up 2%.
Gene editing biotech Caribou Biosciences (CRBU) upsized and priced at the high end to raise $304 million at a $972 million market cap. Caribou Biosciences is using its novel CRISPR platform to develop genome-edited allogenic cell therapies. Its lead program is a CAR-T cell therapy with PD-1 removed from the cell surface that is currently in a Phase 1 trial for relapsed or refractory B cell non-Hodgkin lymphoma. Caribou finished up 2%.
Instructure Holdings (INST) priced at the midpoint to raise $250 million at a $2.9 billion market cap. Instructure states that it is the LMS market leader in both higher education and paid K-12, with over 6,000 global customers across 90 countries. Profitable on an EBIT basis with solid growth, the company’s gross margin contracted in the last two fiscal years and most recent quarter. Instructure finished up 2%.
Content marketing platform Outbrain (OB) priced below the range to raise $160 million at a $1.2 billion market cap. Outbrain’s platform helps engage users and monetize visits by gathering over 1 billion data events each minute. The company is profitable and has demonstrated growth at scale. However, its revenue is concentrated, and it does not have long-term commitments from advertisers. Outbrain finished flat.
Gambling.com Group (GAMB) priced at the low end of the downwardly revised range to raise $42 million at a $288 million market cap. Profitable and fast growing, Gambling.com is a performance marketing company and a digital marketing services provider active exclusively in the online gambling industry, with a principal focus on iGaming and sports betting. Gambling.com finished flat.
Beverage brand Zevia (ZVIA) downsized and priced at the midpoint to raise $150 million at a $986 million market cap. Zevia provides six product lines of zero calorie, zero sugar, naturally sweetened beverages in the US and Canada. The company has demonstrated consistent growth and a steadily expanding retail footprint, though it operates in an increasingly crowded market. Zevia finished down 2%.
Swiss health tech company SOPHiA GENETICS (SOPH) priced at the midpoint to raise $234 million at a $1.2 billion market cap. SOPHiA GENETICS provides a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. As of 3/31/21, it had approximately 240 applications used for precision medicine across various disease areas. SOPHiA finished down 7%.
Brazil’s Zenvia (ZENV) priced at the low end to raise $150 million at a $508 million market cap. The company’s software platform facilitated the flow of communication for more than 10,190 customers throughout Latin America as of March 31, 2021. While it achieved a net revenue expansion rate of nearly 110%, Zenvia’s EBITDA turned negative in the 1Q21. Zenvia finished down 22%.
Immunotherapy biotech HCW Biologics (HCWB) priced at the low end to raise $56 million at a $290 million market cap. The company's molecule HCW9201 is currently being evaluated for generation of memory-like NK cell products in two ongoing Phase 2 trials for relapsed/refractory acute myeloid leukemia, with preliminary data expected in the 2H21. HCW Biologics finished down 35%.
Five SPACs raised $895 million led by Vince Cubbage’s TortoiseEcofin Acquisition III (TRTL.U), which raised $300 million to acquire a business in the energy transition and sustainability arena.
| 24 IPOs During the Week of July 19th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 07/23 |
| Absci (ABSI) | $200M | $1,560M | 0% | +35% | +43% |
| Provides a platform for the discovery and development of protein therapies. | |||||
| Couchbase (BASE) | $200M | $1,150M | 12% | +27% | +42% |
| Provides NoSQL database technology for application developers. | |||||
| CS Disco (LAW) | $224M | $1,898M | 16% | +28% | +40% |
| Provides software for ediscovery, legal document review, and case management. | |||||
| VTEX (VTEX) | $361M | $3,754M | 19% | +17% | +34% |
| Provides enterprise software used to build online stores in Latin America. | |||||
| Ryan Specialty Group (RYAN) | $1,338M | $6,149M | 0% | +17% | +22% |
| Wholesale specialty insurance brokerage. | |||||
| Core & Main (CNM) | $698M | $4,827M | -7% | +19% | +19% |
| Leading distributor of pipes and other industrial water infrastructure products. | |||||
| Kaltura (KLTR) | $150M | $1,440M | -33% | +20% | +18% |
| Provides live and on-demand video SaaS solutions. | |||||
| Paycor HCM (PYCR) | $426M | $4,006M | 18% | +13% | +17% |
| Provides a SaaS human capital management platform for SMBs. | |||||
| Cytek BioSciences (CTKB) | $285M | $2,332M | 0% | +10% | +10% |
| Provides cell analysis instruments for life science applications. | |||||
| U.S. Century Bank (USCB) | $40M | $183M | -11% | +8% | +8% |
| Community bank in the Miami-Dade MSA. | |||||
| Xponential Fitness (XPOF) | $120M | $529M | -20% | +2% | +2% |
| Roll-up of franchised boutique fitness brands with over 1,750 studios in North America. | |||||
| Caribou Biosciences (CRBU) | $304M | $972M | 7% | +2% | +2% |
| Phase 1 biotech developing gene edited cell therapies for multiple cancers. | |||||
| Clover Leaf Capital (CLOEU) | $125M | $158M | 0% | +0% | +2% |
| Blank check company backed by Yntegra Group targeting the cannabis industry. | |||||
| Instructure Holdings (INST) | $250M | $2,885M | 0% | +5% | +2% |
| Provides a learning management platform. | |||||
| Outbrain (OB) | $160M | $1,219M | -20% | +0% | +0% |
| Provides an online content marketing platform. | |||||
| Gambling.com Group (GAMB) | $42M | $288M | -33% | +0% | +0% |
| Provides digital marketing services to the online gambling industry. | |||||
| Chavant Capital Acq. (CLAYU) | $80M | $100M | 0% | +0% | -1% |
| Blank check company targeting advanced manufacturing and materials technology. | |||||
| Portage Fintech Acq. (PFTAU) | $240M | $300M | 0% | +0% | -1% |
| Blank check company targeting the fintech sector. | |||||
| TortoiseEcofin Acq. III (TRTL.U) | $300M | $375M | 0% | -1% | -1% |
| Third blank check company led by Vincent Cubbage targeting the energy transition and sustainability arena. | |||||
| Belong Acquisition (BLNGU) | $150M | $194M | 0% | -1% | -1% |
| Blank check company targeting high-growth tech and tech-enabled businesses. | |||||
| Zevia (ZVIA) | $150M | $986M | 0% | -3% | -2% |
| Makes zero calorie soft drinks sweetened with stevia. | |||||
| SOPHiA GENETICS (SOPH) | $234M | $1,197M | 0% | -7% | -7% |
| Provides a data-driven SaaS platform for the healthcare industry. | |||||
| Zenvia (ZENV) | $150M | $508M | -21% | -22% | -22% |
| Provides a customer experience communications platform in Latin America. | |||||
| HCW Biologics (HCWB) | $56M | $290M | -11% | -21% | -35% |
| Phase 2 biotech developing novel immunotherapies for cancer. | |||||
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Five IPOs submitted initial filings. After postponing last year and withdrawing earlier this month, South Korean game developer DoubleDown Interactive (DDI) refiled to raise $120 million. Proteomics platform IsoPlexis (ISO) filed to raise $100 million. Alzheimer’s biotech Cognition Therapeutics (CGTX) filed to raise $50 million, managed health plan provider Marpai (MRAI) filed to raise $31 million, and Canadian drone company Draganfly (DPRO) filed to raise $25 million.
13 SPACs submitted initial filings led by former CBS executive Joseph Ianniello’s Argus Capital (ARGUU), which filed to raise $300 million.
| 18 Filings During the Week of July 19th, 2021 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Argus Capital (ARGUU) | $300M | SPAC | Goldman |
| Blank check company led by former ViacomCBS/CBS executives targeting media, entertainment, and sports. | |||
| Jade Mountain Acquisition (JMACU) | $100M | SPAC | EF Hutton |
| Blank check company targeting the healthcare and technology sectors. | |||
| Aetherium Acquisition (VIEDU) | $100M | SPAC | EF Hutton |
| Blank check company targeting the education and edtech industries in Asia. | |||
| Alpine Acquisition (REVEU) | $100M | SPAC | Maxim |
| Blank check company led by Alpine Consolidated and Two Bit Circus executives. | |||
| Draganfly (DPRO) | $25M | Industrials | ThinkEquity |
| Canadian provider of drones and related hardware, services, and solutions. | |||
| Apollo Acquisition (APOAU) | $40M | SPAC | Tiger Brokers |
| Blank check company targeting the internet and technology sectors. | |||
| Athena Consumer Acq. (ACAQ.U) | $200M | SPAC | Citi |
| Blank check company targeting technology-enabled consumer products and services. | |||
| BioPlus Acquisition (BIOS.U) | $220M | SPAC | Cantor Fitz. |
| Blank check company targeting life sciences. | |||
| Cactus Acquisition 1 (CCTSU) | $100M | SPAC | Oppenheimer |
| Blank check company targeting tech-based healthcare businesses in or connected to Israel. | |||
| DoubleDown Interactive (DDI) | $120M | Technology | B. Riley |
| Leading developer and publisher of mobile- and web-based social casino games. | |||
| IsoPlexis (ISO) | $100M | Health Care | Morgan Stanley |
| Provides a single cell proteomics platform for drug development. | |||
| Marpai (MRAI) | $31M | Health Care | ThinkEquity |
| Pre-revenue managed health plan platform for self-insured employers. | |||
| Pacifico Acquisition (PAFOU) | $50M | SPAC | Chardan |
| Blank check company targeting the new energy, biotech, and education sectors in Asia. | |||
| Aesther Healthcare Acq. (AEHAU.RC) | $100M | SPAC | EF Hutton |
| Blank check company led by TRxADE Health executives targeting the pharma and medical device sectors. | |||
| Cognition Therapeutics (CGTX) | $50M | Health Care | B. Riley |
| Phase 2 biotech developing small molecule therapies for Alzheimer's and other CNS diseases. | |||
| Kensington Capital Acq. V (KCGI.U) | $260M | SPAC | UBS |
| Blank check company led by the founder of Kensington Capital targeting industrials. | |||
| Oxbridge Acquisition (OXACU) | $100M | SPAC | Maxim |
| Blank check company formed by Oxbridge Re Holdings targeting insurtech and blockchain. | |||
| SCM Acquisition (SCMAU) | $150M | SPAC | Seaport Global |
| Blank check company formed by SGAM and Calibre Group targeting the steel, metals, and metal processing sector. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/22/21, the Renaissance IPO Index was down 1.0% year-to-date, while the S&P 500 was up 16.3%. 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 3.0% 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 EQT Partners and Smoore International.
