The IPO market was relatively quiet ahead of the holiday week with seven IPOs raising $1.5 billion. 12 SPACs also priced. Two deals failed to get done: childcare giant KinderCare (KLC) postponed, and Canada-listed Sangoma Technologies (SANG) terminated its proposed US offering. New issuers continued to join the pipeline in preparation for post-Thanksgiving launches, with nine IPOs and 13 SPACs submitting initial filings.
Fast casual salad chain Sweetgreen (SG) upsized and priced well above the range to raise $364 million at a $3.4 billion market cap. One of the fastest-growing restaurants in the US, Sweetgreen owns and operates 140 restaurants across 13 states and DC. While it is highly unprofitable, the company has a strong digital presence and plans double its store count in the next three to five years. Sweetgreen finished up 89%.
Germany-based Sono Group (SEV) priced at the midpoint 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. After popping 155% on its first day, Sono finished the week up 65%.
Braze (BRZE) priced well above the range to raise $520 million at a $6.7 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. Braze finished up 45%.
UserTesting (USER) downsized and priced below the range to raise $140 million at a $2.3 billion market cap. The company provides a video-first customer feedback platform for enterprises driven by capturing various human signals. While it has a diverse customer base and strong net dollar-based retention, the company remains unprofitable due to high S&M spend. UserTesting finished down 4%.
Australia’s Iris Energy (IREN), a Bitcoin mining company primarily powered by renewable energy, priced above the range to raise $232 million at a $1.6 billion market cap. Iris acquired its first site in British Columbia in January 2021. The company is dependent on the Bitcoin market, and while prices have risen near all-time highs, it remains highly volatile. Iris finished down 11%.
Utah-based digital bank FinWise Bancorp (FINW) priced within the range to raise $37 million at a $135 million market cap. FinWise Bank makes loans to and takes deposits from consumers and small businesses across the US. As of 9/30/21, FinWise Bancorp had total assets of $338 million, total loans of $249 million, total deposits of $253 million, and total shareholders' equity of $69 million. FinWise finished up 21%.
Canadian lithium mining company Snow Lake Resources (LITM) upsized and priced at the high end to raise $24 million at a $131 million market cap. Snow Lake aims to focus sales to the EV and battery storage markets in the US and abroad. The company has a limited operating history and has not generated any revenue to date. Snow Lake finished up 73%.
12 SPACs went public led by Cohen and Gilbert’s fintech-focused FTAC Zeus Acquisition (ZINGU), which raised $350 million.
| 19 IPOs During the Week of November 15th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 11/19 |
| Sweetgreen (SG) | $364M | $3,423M | 17% | +77% | +89% |
| Operates a chain of fast casual salad restaurants. | |||||
| Snow Lake Resources (LITM) | $24M | $131M | 7% | +73% | +73% |
| Canadian producer of lithium for batteries. | |||||
| Sono Group (SEV) | $150M | $1,088M | 0% | +155% | +65% |
| Germany-based developer of solar powered vehicles. | |||||
| Braze (BRZE) | $520M | $6,663M | 13% | +44% | +45% |
| Provides a cross-channel customer engagement platform. | |||||
| FinWise Bancorp (FINW) | $37M | $135M | -25% | +21% | +21% |
| Utah-based digital bank that offers loan and deposit services across the US. | |||||
| Energem Corp. (ENCPU) | $100M | $129M | 0% | +1% | +2% |
| Blank check company targeting the energy value chain in the Southeast Asia and APAC region. | |||||
| Nabors Energy Transition (NETC.U) | $240M | $300M | 0% | +1% | +1% |
| Blank check company formed by Nabors Industries targeting the energy transition space. | |||||
| Arisz Acquisition (ARIZU) | $60M | $78M | 0% | +2% | +1% |
| Blank check company formed by MSQ Ventures targeting healthcare. | |||||
| FTAC Zeus Acquisition (ZINGU) | $350M | $490M | 0% | +1% | +1% |
| Blank check company led by SPAC veteran Daniel Cohen and Launchpad Capital's Ryan Gilbert targeting fintech. | |||||
| ALSP Orchid Acquisition I (ALORU) | $150M | $196M | 0% | +1% | +1% |
| Blank check company formed by Accelerator Life Science Partners. | |||||
| Seaport Global Acq. II (SGIIU) | $125M | $156M | 0% | +1% | +1% |
| Blank check company formed by Seaport Global targeting reorganized or distressed businesses. | |||||
| Infinite Acquisition (NFNT.U) | $240M | $300M | 0% | +1% | +1% |
| Blank check company backed by Kevin Durant's Thirty Five Ventures and LionTree targeting tech. | |||||
| bleuacacia (BLEUU) | $240M | $300M | 0% | +1% | +1% |
| Blank check company targeting businesses that engage with millennial and Gen-Z consumers. | |||||
| ShoulderUP Tech Acq. (SUAC.U) | $265M | $369M | 0% | +1% | +1% |
| Blank check company led by industry veterans targeting tech and cybersecurity. | |||||
| LF Capital Acquisition II (LFACU) | $225M | $281M | 0% | +1% | +1% |
| Blank check company led by the former CSO of Candriam and former CEO of BNP Paribas. | |||||
| InFinT Acquisition (IFIN.U) | $174M | $225M | 0% | +1% | +1% |
| Blank check company targeting financial technology businesses. | |||||
| Crescera Capital Acq. (CRECU) | $175M | $233M | 0% | +0% | +0% |
| Blank check company formed by Crescera Capital targeting businesses in Latin America. | |||||
| UserTesting (USER) | $140M | $2,302M | -13% | +0% | -4% |
| Provides a video-first customer feedback platform for enterprises. | |||||
| Iris Energy (IREN) | $232M | $1,553M | 8% | -13% | -11% |
| Bitcoin miner primarily powered by renewable energy. | |||||
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Nine IPOs submitted initial filings. Greek yogurt brand Chobani (CHO) filed for an estimated $1.5 billion IPO. Indian IT services provider Coforge (CFRG.RC) and IoT solutions developer Samsara (IOT) both filed for estimated $1 billion IPOs. Brazilian steakhouse chain Fogo Hospitality (FOGO), commercial REIT Four Springs Capital Trust (FSPR), energy efficiency solutions provider Redaptive (EAAS), and neurodegenerative disease biotech Vigil Neuroscience (VIGL) all filed to raise $100 million. Advertising and analytics firm Samba TV (SMBA) filed to raise $75 million, and adtech company Direct Digital Holdings (DRCT) filed to raise $40 million.
13 SPACs submitted initial filings, led by power-grid focused Power & Digital Infrastructure Acquisition II (XPDBU), fintech-focused Motive Capital II (MTVC.U), energy transition-focused ST Energy Transition I (STET.U), and national security-focused C5 Acquisition (CXAC.U), which all filed to raise $250 million.
| 23 Filings During the Week of November 15th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| APx Acquisition I (APXIU) | $150M | SPAC | BofA |
| Blank check company formed by APx Capital targeting businesses in Spanish-speaking Latin American countries. | |||
| C5 Acquisition (CXAC.U) | $250M | SPAC | Cantor Fitz. |
| Blank check company formed by C5 Capital targeting space, cybersecurity, and energy transition. | |||
| Clean Earth Acquisitions (CLINU) | $200M | SPAC | Citi |
| Blank check company targeting the clean and renewable energy industry. | |||
| Genesis Growth Tech Acq. (GGAAU) | $200M | SPAC | Nomura |
| Blank check company targeting the consumer internet industry in Europe, Israel, the UAE, or the US. | |||
| Globalink Investment (GLLIU) | $100M | Technology | Chardan |
| Blank check company targeting the e-commerce and payments sectors. | |||
| Healthcare AI Acquisition (HAIAU) | $200M | SPAC | Citi |
| Blank check company formed by Stanley Capital targeting the healthcare and pharma sectors. | |||
| Samsara (IOT) | $1,000M | Technology | Morgan Stanley |
| Develops end-to-end Internet of Things solutions for businesses. | |||
| Vigil Neuroscience (VIGL) | $100M | Health Care | Morgan Stanley |
| Phase 1-ready biotech developing antibody therapies for neurodegenerative diseases. | |||
| Power & Digital Acq. II (XPDBU) | $250M | SPAC | Barclays |
| Blank check company targeting electrical power grid transition. | |||
| Bullpen Parlay Acq. (BPACU) | $200M | SPAC | Citi |
| Blank check company targeting the online gaming, sports, and hospitality industries. | |||
| Chobani (CHO) | $1,500M | Consumer Staples | Goldman |
| Leading Greek yogurt brand in the US. | |||
| Redaptive (EAAS) | $100M | Industrials | BofA |
| Provides energy efficiency and data solutions for commercial and industrial enterprises. | |||
| Cartica Acquisition (CITEU) | $200M | SPAC | JP Morgan |
| Blank check company backed by Cartica Management targeting India-focused tech businesses. | |||
| Fogo Hospitality (FOGO) | $200M | Consumer Discretionary | Morgan Stanley |
| Brazilian steakhouse chain with 60 locations in the US and internationally. | |||
| Nubia Brand International (NUBI.U) | $100M | SPAC | EF Hutton |
| Blank check company targeting the wireless telecommunications sphere. | |||
| Samba TV (SMBA) | $75M | Technology | BofA |
| Provides AI-driven advertising and analytics software for connected TVs. | |||
| Coforge (CFRG.RC) | $1,000M | Technology | Citi |
| Indian provider of IT services and solutions. | |||
| Direct Digital Holdings (DRCT) | $40M | Technology | Stephens |
| Provides an end-to-end programmatic advertising platform to SMBs. | |||
| Four Springs Capital REIT (FSPR) | $100M | Real Estate | Morgan Stanley |
| Single-tenant net lease REIT with 154 commercial properties across 32 states. | |||
| Motive Capital II (MTVC.U) | $250M | SPAC | UBS |
| Second blank check company formed by Motive Partners targeting fintech. | |||
| Sangoma Technologies (SANG) | $125M | Technology | Morgan Stanley |
| Canadian provider of communications products and services. | |||
| Sieger Healthcare Acq. (SIGQU) | $75M | SPAC | Piper Sandler |
| Blank check company backed by Genius Link Group targeting healthcare. | |||
| ST Energy Transition I (STET.U) | $250M | SPAC | Morgan Stanley |
| Blank check company targeting energy transition and clean energy technology. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/18/2021, the Renaissance IPO Index was up 5.2% year-to-date, while the S&P 500 was up 25.3%. 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 20.0% year-to-date, while the ACWX was up 9.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
