After a busy July, the IPO market began to pump the brakes this past week with four IPOs and four postponements. SPAC activity remained steady with seven blank check IPOs. New filers trickled into the IPO pipeline, with only one IPO and six SPACs submitting initial filings.
Four companies postponed: biopharmaceutical royalty company Healthcare Royalty (HCRX), clinical trial solutions provider WCG Clinical (WCGC), nutraceutical maker The Better Being Co. (BBCO), and law enforcement supplier Cadre Holdings (CDRE).
Adagio Therapeutics (ADGI) upsized and priced at the midpoint to raise $309 million at a $2.0 billion market cap. This biotech develops antibody therapies licensed from Adimab to treat and prevent COVID-19. The company's lead program has completed enrollment in a Phase 1 trial for the treatment of COVID-19, and is also currently in a Phase 2/3 global trial for prevention of COVID-19. Adagio Therapeutics finished up 23%.
Outdoor grilling brand Weber (WEBR) downsized and priced below the range to raise $250 million at a $4.1 billion market cap. The company offer gas grills, charcoal grills, electric grills, smokers, and wood pellet grills and boasts a 23% share of the US grill market. While it is leveraged post-IPO, the company has delivered solid growth and plans to pay a dividend. Weber finished up 29%.
Hair removal chain European Wax Center (EWCZ) priced within the range to raise $180 million at a $1.1 billion market cap. The company franchises a chain of over 800 wax-based hair removal salons across the US. European Wax Center was hard hit by pandemic restrictions, and it is highly leveraged post-IPO. European Wax Center was finished up 31%.
Orange County Bancorp (OBT) upsized and priced at the midpoint to raise $34 million at a $188 million market cap. This New York bank has 14 full-service branches and one loan production office across the Lower Hudson Valley. As of 3/31/21, the company had $1.9 billion in assets, $1.2 billion in loans, $1.7 billion in deposits, and $135 million in stockholders' equity. Orange County Bancorp finished up 2%.
Seven blank check companies raised $1.1 billion this past week, led by healthcare-focused SPAC Healthwell Acquisition (HWELU) and Riverview Acquisition (RVACU), each of which raised $250 million.
| 11 IPOs During the Week of August 2nd, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 08/06 |
| European Wax Center (EWCZ) | $180M | $1,100M | 3% | +26% | +31% |
| Franchised chain of hair removal salons. | |||||
| Weber (WEBR) | $250M | $4,147M | -13% | +18% | +29% |
| Leading outdoor grilling brand. | |||||
| Adagio Therapeutics (ADGI) | $309M | $1,993M | 0% | +23% | +23% |
| Phase 2/3 biotech developing antibody therapies to treat and prevent COVID-19. | |||||
| Orange County Bancorp (OBT) | $34M | $188M | 0% | +2% | +2% |
| New York bank with 14 full-service branches across the Lower Hudson Valley. | |||||
| Nova Vision Acquisition (NOVVU) | $50M | $66M | 0% | +1% | +1% |
| Blank check company targeting businesses in Asia. | |||||
| Roth CH Acquisition IV (ROCGU) | $100M | $129M | 0% | +0% | +0% |
| Fourth blank check company formed by executives of Roth Capital and Craig-Hallum. | |||||
| Gladstone Acquisition (GLEEU) | $100M | $127M | 0% | +0% | +0% |
| Blank check company targeting the farming and agricultural sectors. | |||||
| Riverview Acquisition (RVACU) | $250M | $313M | 0% | -1% | -1% |
| Blank check company targeting consumer, energy, and financial services enterprises. | |||||
| Blue Whale Acquisition (BWCAU) | $200M | $222M | 0% | -1% | -1% |
| Blank check company formed by the UAE's Mubadala Capital targeting media, entertainment, and tech. | |||||
| AMCI Acquisition II (AMCIU) | $150M | $188M | 0% | -2% | -1% |
| Second blank check company formed by AMCI Group targeting decarbonization and sustainability solutions. | |||||
| Healthwell Acquisition I (HWELU) | $250M | $313M | 0% | -1% | -1% |
| Blank check company targeting technology-enabled healthcare businesses. | |||||
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Only one IPO submitted an initial filing this past week, inflammation-focused device maker Tivic Health Systems (TIVC), which filed to raise $16 million.
Six SPACs submitted initial filings, led by foodservice-focused Banyan Acquisition (BYN.U), which filed to raise $300 million.
| 7 Filings During the Week of August 2nd, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| AltEnergy Acquisition (AEAEU) | $200M | SPAC | B. Riley |
| Blank check company formed by AltEnergy LLC targeting the alternative energy sector. | |||
| Banyan Acquisition (BYN.U) | $300M | SPAC | BTIG |
| Blank check company led by the former CEO of TriMark targeting the foodservice industry. | |||
| Achari Ventures I (AVHIU) | $100M | SPAC | Chardan |
| Blank check company backed by Achari Ventures targeting the cannabis industry. | |||
| Cascadia Acquisition (CCAI.U) | $150M | SPAC | Cantor Fitz. |
| Blank check company formed by Cascadia Capital targeting "Industry 4.0". | |||
| Hash Space Acquisition (HACUU) | $40M | SPAC | Chardan |
| Blank check company targeting the blockchain sector. | |||
| Emerging Markets Horizon (HORI.U) | $250M | SPAC | Citi |
| Blank check company targeting high growth tech and consumer-exposed businesses. | |||
| Tivic Health Systems (TIVC) | $16M | Health Care | ThinkEquity |
| Makes a non-invasive neuromodulation device for sinus and nasal inflammation. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/5/2021, the Renaissance IPO Index was up 0.7% year-to-date, while the S&P 500 was up 17.9%. 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 9.6% year-to-date, while the ACWX was up 9.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Smoore International and EQT Partners.
