Updated Monday, 10/25.
The IPO market continues to stay busy with 15 IPOs schedule to raise $7.2 billion in the week ahead.
Semiconductor foundry GlobalFoundries (GFS) plans to raise $2.4 billion at a $24.6 billion market cap. Backed by Abu Dhabi’s Mubadala, US-based GlobalFoundries is one of the world’s leading specialty semiconductor foundries. Unprofitable with lumpy growth, the company states that it is the only scaled pure-play foundry with a global footprint that is not based in China or Taiwan.
Enterprise cloud data management platform Informatica (INFA) plans to raise $885 million at an $8.7 billion market cap. This company provides data integration services on its AI-powered platform to over 5,700 customers through both licenses and subscriptions. Although it will be highly leveraged post-IPO, Informatica is a recognized leader in the global data management market and saw strong subscription ARR growth in the 1H21.
Energy storage provider Fluence Energy (FLNC) plans to raise $698 million at a $3.8 billion market cap. Formed by Siemens and AES, this company sells energy storage products and services to utilities, independent power producers, project developers, and commercial and industrial customers. Fast growing but unprofitable, Fluence Energy deployed 942 MW of storage products as of 6/30/21.
Revenue cycle management platform Ensemble Health Partners (ENSB) plans to raise $605 million at a $3.6 billion market cap. This platform provides revenue cycle management solutions to the healthcare industry. Profitable with accelerating growth in the 1H21, Ensemble Health has over $20 billion in annual client net patient revenue under management.
Hiring solutions provider HireRight Holdings (HRT) plans to raise $500 million at a $1.8 billion market cap. This company provides background checks, verification, identification, monitoring, and drug and health screening services to over 40,000 customers. HireRight was profitable on an EBIT basis in the 1H21, though cash flow swung negative.
Online education marketplace Udemy (UDMY) plans to raise $406 million at a $4.3 billion market cap. This education platform provides over 183,000 courses in 75 languages to over 44 million customers in over 180 countries. Growing but unprofitable, Udemy has registered more than 73 million users since its inception.
Chinese drug in-licensor LianBio (LIAN) plans to raise $325 million at a $1.8 billion market cap. Focused on China and other Asian markets, this biopharmaceutical company develops and commercializes drugs for a variety of indications. LianBio’s pipeline currently consists of nine product candidates across five different therapeutics areas.
Rent the Runway (RENT) plans to raise $293 million at a $1.4 billion market cap. This apparel rental company originally focused on a-la-carte rentals of dresses for events, but has gradually transitioned to mostly generating revenue from monthly subscription boxes. While the company has seen active subscribers and revenue rebound in the last two quarters, it is unprofitable and leveraged post-IPO.
Aesthetic medical device maker Candela Medical (CDLA) plans to raise $250 million at a $1.7 billion market cap. Selling products directly in 18 countries and indirectly in 66 countries, this company develops medical devices for elective aesthetic procedures. Despite being hard hit by the pandemic, Candela Medical saw strong growth and turned profitable in the 1H21.
Fire pit brand Solo Brands (DTC) plans to raise $200 million at a $1.5 billion market cap. Solo Brands sells fire pits, camp stoves, and other outdoor gear through its DTC platform. Fast growing and profitable, this outdoor e-commerce has an installed base of more than 2.3 million customers.
Body contouring provider AirSculpt Technologies (AIRS) plans to raise $160 million at an $886 million market cap. This company provides minimally-invasive body contouring procedures through 16 centers across 13 states in the US. AirSculpt Technologies is profitable with solid growth, and has seen an increase in same-center case volume as a result of lessening effects of COVID-19.
Rare disease biotech Entrada Therapeutics (TRDA) plans to raise $150 million at a $605 million market cap. The company is initially focused on developing Endosomal Escape Vehicle therapeutics for rare neuromuscular diseases. Its most advanced candidate, ENTR-601-44, is being developed for patients with Duchenne muscular dystrophy that are exon 44 skipping amenable. Entrada plans to submit an IND application for ENTR-601-44 in 2022.
Root canal therapy system maker Sonendo (SONX) plans to raise $125 million at a $459 million market cap. Sonendo has developed what it states is the first and only FDA-cleared system for root canal therapy (RCT), called the GentleWave System. Sonendo began scaling commercialization of its current technology in 2017, and as of June 30, 2021, it had an installed base of over 700 GentleWave Systems and has treated more than 600,000 patients.
Technology firm Arteris (AIP) plans to raise $75 million at a $555 million market cap. This technology company develops and licenses interconnect intellectual property that manages the on-chip communications in System-on-Chip semiconductor devices. Arteris is unprofitable but saw growth accelerate in the 1H21.
Solid tumor biotech Aura Biosciences (AURA) plans to raise $75 million at a $454 million market cap. AU-011, its first Virus-Like Drug Conjugate candidate, is being developed for the first line treatment of primary choroidal melanoma, a rare disease with no drugs approved. Aura plans to present six to twelve month safety and efficacy data from its Phase 2 dose escalation trial in 2022, and, if favorable, initiate a pivotal trial in the 2H22.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Arteris (AIP) Campbell, CA | $75M $555M | $14 - $16 5,000,000 | Jefferies Cowen |
| Develops and licenses interconnect IP for semiconductor SoCs. | |||
| Informatica (INFA) Redwood City, CA | $885M $8,729M | $29 - $32 29,000,000 | Goldman JP Morgan |
| Provides an enterprise cloud data management platform. | |||
| Rent the Runway (RENT) New York, NY | $293M $1,355M | $18 - $21 15,000,000 | Goldman Morgan Stanley |
| Rents designer apparel and accessories to women via monthly subscriptions. | |||
| Candela Medical (CDLA) Marlborough, MA | $250M $1,691M | $16 - $18 14,705,882 | BofA Goldman |
| Makes energy-based medical devices for aesthetic procedures. | |||
| Ensemble Health Partners (ENSB) Cincinnati, OH | $605M $3,624M | $19 - $22 29,500,000 | Goldman BofA |
| Provides a healthcare revenue cycle management platform. | |||
| Fluence Energy (FLNC) Arlington, VA | $698M $3,750M | $21 - $24 31,000,000 | JP Morgan Morgan Stanley |
| Energy storage products and services provider formed by Siemens and AES. | |||
| GlobalFoundries (GFS) Malta, NY | $2,448M $24,574M | $42 - $47 55,000,000 | Morgan Stanley BofA |
| Global semiconductor designer and foundry based in the US. | |||
| LianBio (LIAN) Princeton, NJ | $325M $1,815M | $15 - $17 20,312,500 | Goldman Jefferies |
| Developing in-licensed therapies for a variety of indications in China. | |||
| Solo Brands (DTC) Southlake, TX | $200M $1,480M | $14 - $17 12,903,225 | BofA JP Morgan |
| Sells branded fire pits, camp stoves, and other outdoor gear. | |||
| AirSculpt Technologies (AIRS) Miami Beach, FL | $160M $886M | $15 - $17 10,000,000 | Morgan Stanley Piper Sandler |
| Provides minimally-invasive body contouring procedures in the US. | |||
| Aura Biosciences (AURA) Cambridge, MA | $75M $454M | $14 - $16 5,000,000 | Cowen SVB Leerink |
| Phase 2 biotech developing virus-like drug conjugates for ocular and urologic solid tumors. | |||
| Entrada Therapeutics (TRDA) Boston, MA | $150M $605M | $19 - $21 7,500,000 | Goldman Cowen |
| Preclinical biotech developing therapies for rare neuromuscular diseases. | |||
| HireRight (HRT) Nashville, TN | $500M $1,810M | $21 - $24 22,222,222 | Credit Suisse Goldman |
| Provides tech-enabled background screening and identity verification services. | |||
| Sonendo (SONX) Laguna Hills, CA | $125M $459M | $15 - $17 7,800,000 | BofA Goldman |
| Makes a medical device system for less-invasive root canal therapy. | |||
| Udemy (UDMY) San Francisco, CA | $406M $4,284M | $27 - $29 14,500,000 | Morgan Stanley JP Morgan |
| Online education marketplace offering user-generated courses. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/22/21, the Renaissance IPO Index was up 8.2% year-to-date, while the S&P 500 was up 21.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Moderna (MRNA). The Renaissance International IPO Index was down 15.8% year-to-date, while the ACWX was up 9.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
