The IPO market is expected to pump the brakes ahead of the Thanksgiving holiday with seven IPOs scheduled to raise $1.9 billion in the week ahead.
Childcare provider KinderCare Learning Companies (KLC) plans to raise $503 million at a $2.7 billion market cap. The company serves children from 6 weeks to 12 years of age through 1,480 early childhood education centers and 650 before- and after-school sites across 40 states and Washington DC. While KinderCare is a leader in the early childhood education market, its business been significantly disrupted by the pandemic.
Braze (BRZE) plans to raise $460 million at a $5.9 billion market cap. Founder-led Braze provides a customer engagement platform used by businesses to improve their marketing. Unprofitable with strong growth, Braze serves over 1,100 clients with net revenue retention of 120%+ as of 7/31/21.
Fast casual salad chain Sweetgreen (SG) plans to raise $300 million at a $2.9 billion market cap. Sweetgreen owned and operated 140 restaurants in 13 states and Washington DC as of 9/26/21. The company has a strong digital presence and plans double its store count in the next three to five years, though it has yet to achieve profitability.
UserTesting (USER) plans to raise $227 million at a $2.6 billion market cap. The company provides a video-first customer feedback platform for enterprises, providing richer, more contextualized insights by capturing various human signals. Its customers include a diverse base of more than 2,100 enterprises, with strong net dollar-based retention. However, it remains unprofitable due to high S&M spend.
Australia’s Iris Energy (IREN), a Bitcoin mining company primarily powered by renewable energy, plans to raise $215 million at a $1.4 billion market cap. Iris acquired its first site in British Columbia in January 2021, which has approximately 30 MW of capacity and operating hashrate capacity of 0.7EH/s. The company is dependent on the Bitcoin market, and while prices have risen near all-time highs, it remains highly volatile.
Germany-based Sono Group (SEV) plans to raise $150 million at a $1.1 billion market cap. The company is developing what it believes is disruptive solar technology, as well as a solar and battery powered vehicle. Despite already accepting 16,000 pre-orders worth $390 million in net sales, it is not expected to reach commercialization until 2023, and will remain highly unprofitable for years.
Canadian gold exploration company Austin Gold (AUST) plans to raise $15 million at a $64 million market cap. The company currently has interests in four gold exploration properties located in the state of Nevada, with just one property that it considers material at this time. Austin Gold has not generated any operating revenues to date.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Braze (BRZE) New York, NY | $460M $5,878M | $55 - $60 8,000,000 | Goldman JP Morgan |
| Provides a cross-channel customer engagement platform. | |||
| Iris Energy (IREN) Sydney, Australia | $215M $1,442M | $25 - $27 8,269,231 | JP Morgan Canaccord |
| Bitcoin miner primarily powered by renewable energy. | |||
| Sono Group (SEV) Munich, Germany | $150M $1,088M | $14 - $16 10,000,000 | Berenberg |
| Germany-based developer of solar powered vehicles. | |||
| UserTesting (USER) San Francisco, CA | $227M $2,636M | $15 - $17 14,169,407 | Morgan Stanley JP Morgan |
| Provides a video-first customer feedback platform for enterprises. | |||
| KinderCare (KLC) Portland, OR | $503M $2,747M | $18 - $21 25,775,434 | Barclays Morgan Stanley |
| Largest private provider of early childhood education and care services in the US. | |||
| Sweetgreen (SG) Los Angeles, CA | $300M $2,908M | $23 - $25 12,500,000 | Goldman JP Morgan |
| Operates a chain of fast casual salad restaurants. | |||
| Austin Gold (AUST) Vancouver, Canada | $15M $64M | $4 - $6 3,000,000 | Roth Cap. |
| Canadian gold exploration company with four properties in Nevada. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/11/2021, the Renaissance IPO Index was up 3.6% year-to-date, while the S&P 500 was up 23.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Uber Technologies (UBER). The Renaissance International IPO Index was down 18.7% year-to-date, while the ACWX was up 8.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
