The 2021 US IPO market continues to break records. 20 IPOs went public this past week, the most in a single week since the year 2000. New filers have slowed ahead of the August lull, with just one IPO submitting an initial filing.
Three issuers postponed, citing either volatility or market conditions: vehicle battery maker Clarios International (BTRY), specialty funding solutions provider Preston Hollow Community Capital (PHCC), and adtech platform Teads (TEAD).
Vaccine biotech Icosavax (ICVX) upsized and priced at the midpoint to raise $182 million at a $622 million market cap. This clinical stage biotech is initially focused on developing vaccines against infectious respiratory diseases using its virus-like particle platform technology. Its most advanced candidate is currently in a Phase 1/2 trial for SARS-CoV-2. After popping 133%, Icosavax finished up 66%.
Retail brokerage Robinhood Markets (HOOD) priced at the low end to raise $2.1 billion at a $34.9 billion market cap. The company offers a no-commission retail brokerage platform with over 18 million MAUs. Despite triple-digit revenue growth in the 1Q21, the platform is dependent on trading volumes, and the recent retail trading boom may be unsustainable. Robinhood finished down 8%.
Language learning platform Duolingo (DUOL) priced above the upwardly revised range to raise $521 million at a $4.6 billion market cap. Duolingo provides an online platform for over 300 million users to learn over 30 new languages. Benefiting from a COVID-related boost in demand, Duolingo posted triple-digit growth in 2020. Duolingo finished up 38%.
AIM-listed cell engineering platform MaxCyte (MXCT) upsized and priced within the range to raise $176 million at a $1.4 billion market cap. MaxCyte's Flow Electroporation technology facilitates the complex engineering of a variety of cells. Its flagship product, the ExPERT platform, can be used across the continuum of the rapidly-expanding cell therapy sector. MaxCyte finished up 31%.
Rare disease biotech Rallybio (RLYB) offered more shares and priced at the low end to raise $81 million at a $438 million market cap. The company is developing antibody therapies for rare diseases. Its lead program is currently being evaluated to treat fetal and neonatal alloimmune thrombocytopenia in a Phase 1/2 trial. Rallybio finished up 31%.
Israeli anti-fraud firm Riskified (RSKD) priced above the range to raise $368 million at a $3.8 billion market cap. This company provides a software platform that improves e-commerce fraud protection for enterprise merchants. Unprofitable with a long sales cycle, the company grew revenue at a 51% CAGR from 2018 to 2020 and achieved 117% net revenue retention in 2020. Riskified finished up 31%.
Traeger (COOK) priced at the high end to raise $424 million at a $2.3 billion market cap. This company makes premium backyard wood pellet grills with a tech feature, allowing owners to program, monitor, and control their grill through the Traeger app. Traeger is a category leader of the wood pellet grill, growing revenue at a 28% CAGR from 2017 to 2020. Traeger finished up 23%.
Oncology biotech Immuneering (IMRX) upsized and priced at the midpoint to raise $113 million at a $398 million market cap. Immuneering's lead program, IMM-1-104, is a highly selective dual-MEK inhibitor being developed for advanced solid tumor patients harboring RAS mutant tumors. The company plans to submit an IND for IMM-1-104 in the 1Q22. Immuneering finished up 17%.
Oncology biotech Nuvalent (NUVL) upsized and priced at the midpoint to raise $166 million at an $850 million market cap. Nuvalent's lead candidate, NVL-520, is a brain-penetrant ROS1-selective inhibitor and is expected to begin clinical trials in patients with ROS1-positive non-small cell lung cancer and other advanced solid tumors in the 2H21, pending the acceptance of its IND. Nuvalent finished up 7%.
PowerSchool Holdings (PWSC) priced at the low end to raise $711 million at a $3.5 billion market cap. The company provides an education platform for teachers to manage classroom activities such as collecting work and grading assignments. Serving over 12,000 customers in over 90 countries globally, PowerSchool turned profitable on a net income basis in the 1Q21. PowerSchool finished up 3%.
Heart disease biotech Tenaya Therapeutics (TNYA) upsized and priced at the midpoint to raise $180 million at a $615 million market cap. The company's multi-modality drug discovery platform targets both genetic and non-genetic forms of heart disease, and consists of a gene therapy program, a cellular regeneration program, and a precision medicine program. The company plans to submit INDs for in 2022. Tenaya finished up 2%.
Smart home integration system Snap One Holdings (SNPO) priced at the low end to raise $249 million at a $1.4 billion market cap. This company provides smart home technology products to over 16,000 professional integrators. Snap One has demonstrated solid growth and was profitable on an EBIT basis in the 1Q21. Snap One finished about flat.
After postponing in November 2020, IN8bio (INAB) priced at the low end to raise $40 million at a $195 million market cap. This Phase 1 biotech is developing allogeneic gamma-delta T cell therapies to treat solid tumors. Although gamma-delta T cells could potentially treat solid tumors, the company is very early stage and has dosed a limited number of patients. IN8bio finished flat.
Intraocular lens platform RxSight (RXST) priced and the low end to raise $118 million at a $448 million market cap. RxSight states that its RxSight Light Adjustable Lens system is the first and only commercially available intraocular lens technology that enables doctors to customize and optimize visual acuity for patients after cataract surgery. RxSight finished flat.
Oral capsule developer Rani Therapeutics (RANI) priced well below the range to raise $73 million at a $528 million market cap. Rani is advancing technologies to enable the development of orally administered biologics. Its RaniPill capsule is a novel, proprietary, and patented platform technology, intended to replace subcutaneous or IV injection of biologics with oral dosing. Rani finished flat.
Canada-listed Draganfly (DPRO) raised $20 million at a $132 million market cap. Draganfly serves the unmanned aerial vehicle or drone market with a suite of products and services that includes quad-copters, fixed wing aircrafts, ground based robots, hand held controllers, flight training, and software used for tracking, live streaming, and data collection. Draganfly finished down 5%.
After lowering its deal size on Monday, cancer biotech Candel Therapeutics (CADL) raised $72 million at a $248 million market cap. Candel's most advanced candidate is currently in a Phase 3 trial as a combination therapy for newly diagnosed localized prostate cancer. The company expects to complete enrollment in the 3Q21 with a final data readout in 2024. Candel finished down 5%.
Gene therapy biotech Omega Therapeutics (OMGA) priced at the midpoint to raise $126 million at an $866 million market cap. Omega's pipeline consists of preclinical programs that span a variety of indications. The company has conducted in vivo preclinical studies in hepatocellular carcinoma, non-small cell lung cancer, and acute respiratory distress syndrome. Omega finished down 6%.
Financial software firm MeridianLink (MLNK) upsized and priced at the high end to raise $343 million at a $2.2 billion market cap. MeridianLink offers a cloud-based digital lending and account opening platform for mid-market community banks and credit unions. The company saw double-digit organic growth in the FY20, although business is cyclical. MeridianLink finished down 9%.
After withdrawing its IPO attempt in 2018, Dole (DOLE) downsized and priced at the low end of the downwardly revised range to raise $400 million at a $1.5 billion market cap. This leading fruit and vegetable company offers 300+ products sourced from 30+ countries to 80+ countries globally. Slow growing and profitable, Dole's offering was made in connection with its merger with Total Produce. Dole finished down 9%.
| 28 IPOs During the Week of July 26th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/30 |
| Icosavax (ICVX) | $182M | $622M | 0% | +133% | +66% |
| Phase 1 biotech developing vaccines for respiratory diseases. | |||||
| Duolingo (DUOL) | $521M | $4,616M | 13% | +36% | +38% |
| Online and mobile language learning platform. | |||||
| MaxCyte (MXCT) | $176M | $1,381M | 4% | +31% | +31% |
| Provides cell engineering devices and services. | |||||
| Rallybio (RLYB) | $81M | $438M | -7% | +8% | +31% |
| Phase 1/2 biotech developing antibody therapies for rare diseases. | |||||
| Riskified (RSKD) | $368M | $3,846M | 11% | +24% | +31% |
| Provides e-commerce fraud protection for enterprises. | |||||
| Traeger (COOK) | $424M | $2,340M | 6% | +22% | +23% |
| Makes premium backyard wood pellet grills. | |||||
| Immuneering (IMRX) | $113M | $398M | 0% | +17% | +17% |
| Preclinical biotech targeting signaling pathways to treat cancer and neurological diseases. | |||||
| Nuvalent (NUVL) | $166M | $850M | 0% | +10% | +7% |
| Preclinical oncology biotech developing small molecule kinase inhibitors. | |||||
| PowerSchool (PWSC) | $711M | $3,531M | -5% | +0% | +3% |
| Provides a comprehensive software suite to the K-12 education market. | |||||
| Tenaya Therapeutics (TNYA) | $180M | $615M | 0% | +2% | +2% |
| Preclinical biotech developing multiple therapies to treat heart disease. | |||||
| International Media Acq. (IMAQU) | $200M | $257M | 0% | +0% | +1% |
| Blank check company targeting the media and entertainment sectors in North America, Europe, and Asia. | |||||
| Snap One Holdings (SNPO) | $249M | $1,356M | -8% | -8% | +0% |
| Provides a suite of smart home products to professional integrators. | |||||
| Software Acquisition III (SWAGU) | $200M | $250M | 0% | +0% | +0% |
| Third blank check company led by former Ooyala officers targeting a software company. | |||||
| IN8bio (INAB) | $40M | $195M | -38% | +0% | +0% |
| Phase 1 oncology biotech developing allogeneic gamma-delta T cell therapies. | |||||
| RxSight (RXST) | $118M | $448M | -6% | +0% | +0% |
| Sells premium adjustable intraocular lenses used in cataract surgery. | |||||
| Rani Therapeutics (RANI) | $73M | $528M | -27% | +0% | +0% |
| Develops ingestible capsules for oral dosing of medication. | |||||
| DA32 Life Sci Tech Acq. (DALS) | $200M | $257M | 0% | -2% | +0% |
| Blank check company formed by Deerfield Management, ARCH Venture Partners, and Section 32. | |||||
| Williams Rowland Acq. (WRAC.U) | $200M | $250M | 0% | +0% | +0% |
| Blank check company targeting growth businesses in the financial services, fintech, and tech sectors. | |||||
| Mercury Ecommerce Acq. (MEACU) | $175M | $219M | 0% | -1% | -1% |
| Blank check company led by Mercury Fund management targeting the e-commerce sector. | |||||
| Alpha Partners Tech (APTMU) | $250M | $321M | 0% | -1% | -1% |
| Blank check company targeting technology. | |||||
| Alpha Healthcare Acq. III (ALPAU) | $150M | $192M | 0% | +0% | -1% |
| Blank check company targeting a healthcare business in the US. | |||||
| Metals Acquisition (MTAL.U) | $250M | $313M | 0% | -2% | -2% |
| Blank check company targeting green-economy metals and mining businesses. | |||||
| Draganfly (DPRO) | $20M | $132M | 0% | -5% | -5% |
| Canadian provider of drones and related hardware, services, and solutions. | |||||
| Candel Therapeutics (CADL) | $72M | $248M | -43% | -13% | -5% |
| Phase 3 biotech developing oncolytic viral immunotherapies for cancer. | |||||
| Omega Therapeutics (OMGA) | $126M | $866M | 0% | -6% | -6% |
| Preclinical biotech developing gene therapies for oncology and other diseases. | |||||
| Robinhood (HOOD) | $2,090M | $34,926M | -5% | -8% | -8% |
| Offers a no-commission retail brokerage platform. | |||||
| MeridianLink (MLNK) | $343M | $2,199M | 4% | -5% | -9% |
| Provides a digital lending platform to mid-market financial institutions. | |||||
| Dole (DOLE) | $400M | $1,492M | -26% | -9% | -9% |
| Leading global fruit and vegetable brand. | |||||
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Just one IPO submitted an initial filing. Crypto miner Stronghold Digital Mining (SDIG) filed to raise $100 million.
11 SPACs submitted initial filings led by cloud-focused Founder SPAC (FOUNU), which filed to raise $275 million.
| 12 Filings During the Week of July 26th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| LifeSci Acquisition III (LSAC) | $75M | SPAC | LifeSci Capital |
| Third blank check company formed by LifeSci Capital targeting the healthcare industry. | |||
| Hawks Acquisition (HWKZ.U) | $200M | SPAC | BTIG |
| Blank check company formed by JC Hawks & Co. targeting post-reorganized or highly levered businesses. | |||
| Kimbell Tiger Acquisition (TGR.U) | $200M | SPAC | UBS |
| Blank check company formed by Kimbell Royalty Partners targeting the the energy and natural resources industry. | |||
| Minority Equal. Opp. Acqu (MEOAU) | $100M | SPAC | Maxim |
| Blank check company targeting minority owner-controlled businesses. | |||
| Embrace Change Acq. (ECAU.RC) | $50M | SPAC | EF Hutton |
| Blank check company targeting the technology, internet, and consumer sectors in China. | |||
| WODA Corp (WODA.U) | $100M | SPAC | EF Hutton |
| Blank check company targeting businesses providing sustainability solutions to the fashion industry. | |||
| A SPAC I Acquisition (ASPA.U) | $80M | SPAC | Chardan |
| Blank check company targeting the technology and e-commerce sectors in Asia. | |||
| Oxus Acquisition (OXUSU) | $150M | SPAC | EarlyBird |
| Blank check company targeting energy transition technology in emerging markets. | |||
| Singularity Acquisition (SINGU.RC) | $100M | SPAC | Tiger Brokers |
| Blank check company targeting the technology and tech-enabled sectors in Asia. | |||
| Stronghold Digital Mining (SDIG) | $100M | Technology | B. Riley |
| Crypto asset mining company powered by alternative energy. | |||
| Founder SPAC (FOUNU) | $275M | SPAC | Jefferies |
| Blank check company targeting the cloud and other digital transformation sectors. | |||
| Neo Technology Acq. (NFTTU) | $40M | SPAC | Maxim |
| Blank check company targeting businesses in Asia and North America. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/29/2021, the Renaissance IPO Index was down 2.1% year-to-date, while the S&P 500 was up 17.7%. 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 7.8% year-to-date, while the ACWX was up 8.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include EQT Partners and Smoore International.
