After a quiet start to the month, the IPO market picked up slightly with three IPOs this past week, joined by 21 SPACs. The pipeline stayed relatively quiet, with just two IPOs and six SPACs submitting initial filings.
Brazil-based Nu Holdings (NU) priced at the high end of downwardly revised range to raise $2.6 billion at a $43.4 billion market cap. Operating as Nubank, this online-only bank was formed to launch a no-fees credit card with a mobile-first customer experience, but has since expanded to offer other financial products. Nu has grown rapidly since its inception, with a current base of nearly 50 million customers. Nu finished up 32%.
Cloud infrastructure platform HashiCorp (HCP) priced well above the range to raise $1.2 billion at a $16.0 billion market cap. This VC-backed company provides a suite of solutions that standardize and automate the provisioning, securing, connecting, and running of cloud infrastructure at scale. While it has demonstrated rapid growth and a sticky customer base, HashiCorp is highly unprofitable due to S&M spend. HashiCorp finished up 7%.
Cannabis finance REIT Chicago Atlantic Real Estate Finance (REFI) priced at the low end to raise $100 million at a $279 million market cap. This newly-formed REIT is focused on originating, structuring, and investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. Its current portfolio consists of senior loans to state-licensed operators in the cannabis industry. Chicago Atlantic Real Estate Finance finished up 2%.
21 SPACs priced this past week led by fintech-focused Motive Capital II (MTVC.U), which upsized to raise $300 million.
| 24 IPOs During the Week of December 6th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 12/10 |
| Nu Holdings (NU) | $2,602M | $43,442M | -14% | +15% | +32% |
| Leading digital bank operating in Brazil, Mexico, and Colombia. | |||||
| Crypto 1 Acquisition (DAOOU) | $200M | $250M | 0% | +12% | +12% |
| Blank check company targeting digital assets and cryptocurrency exchanges. | |||||
| HashiCorp (HCP) | $1,224M | $16,029M | 14% | +6% | +7% |
| Provides cloud infrastructure and data center management solutions. | |||||
| Financial Strategies Acq. (FXCOU) | $87M | $117M | 0% | +2% | +2% |
| Blank check company targeting the fintech and financial services industries | |||||
| Chicago Atlantic REF (REFI) | $100M | $279M | -6% | +3% | +2% |
| Newly-formed commercial mortgage REIT focused on the cannabis industry. | |||||
| Globalink Investment (GLLIU) | $100M | $130M | 0% | +1% | +1% |
| Blank check company targeting the e-commerce and payments sectors. | |||||
| APx Acquisition I (APXIU) | $150M | $188M | 0% | +1% | +1% |
| Blank check company formed by APx Capital targeting businesses in Spanish-speaking Latin American countries. | |||||
| Genesis Growth Tech Acq. (GGAAU) | $220M | $275M | 0% | +1% | +1% |
| Blank check company targeting the consumer internet industry in Europe, Israel, the UAE, or the US. | |||||
| Emerging Markets Horizon (HORIU) | $250M | $313M | 0% | +1% | +1% |
| Blank check company led by the Vice Chair of Russia's VTB Capital targeting high-growth tech and consumer. | |||||
| Sculptor Acquisition I (SCUA.U) | $200M | $250M | 0% | +0% | +0% |
| Real estate-focused blank check company formed by Sculptor Capital Management. | |||||
| Integrated Wellness Acq. (WEL.U) | $100M | $125M | 0% | +0% | +0% |
| Blank check company targeting the health, nutrition, fitness, wellness, and beauty sectors. | |||||
| Inception Growth Acq. (IGTAU) | $90M | $113M | 0% | +0% | +0% |
| Blank check company formed by VC Paige Craig targeting the TMT, sports, and gaming industries. | |||||
| Jupiter Wellness Acq. (JWACU) | $120M | $159M | 0% | +0% | +0% |
| Blank check company led by the CEO of Jupiter Wellness targeting the healthcare industry. | |||||
| Healthcare AI Acquisition (HAIAU) | $200M | $250M | 0% | +0% | +0% |
| Blank check company formed by Stanley Capital targeting the healthcare and pharma sectors. | |||||
| Trajectory Alpha Acq. (TCOA.U) | $150M | $188M | 0% | n/a | +0% |
| Blank check company targeting a disruptive technology-driven business. | |||||
| Power & Digital Acq. II (XPDBU) | $250M | $313M | 0% | n/a | +0% |
| Blank check company targeting electrical power grid transition. | |||||
| Growth For Good Acq. (GFGDU) | $220M | $282M | 0% | +0% | +0% |
| Blank check company targeting sustainable businesses. | |||||
| Southport Acquisition (PORT.U) | $200M | $250M | 0% | +0% | +0% |
| Blank check company targeting the financial software space. | |||||
| Jackson Acquisition (RJAC.U) | $200M | $250M | 0% | n/a | +0% |
| Blank check company led by Jeb Bush targeting healthcare. | |||||
| Forbion European Acq. (FRBNU) | $110M | $138M | 0% | +0% | +0% |
| Blank check company formed by Forbion targeting the life sciences industry in Europe. | |||||
| Motive Capital II (MTVC.U) | $300M | $375M | 0% | +0% | +0% |
| Second blank check company formed by Motive Partners targeting fintech. | |||||
| Athena Technology Acq. II (ATEK.U) | $250M | $347M | 0% | +0% | +0% |
| Blank check company targeting fintech, enterprise, and healthtech industries. | |||||
| Target Global I (TGAAU) | $200M | $250M | 0% | -1% | -1% |
| Blank check company formed by Target Global focusing on European and Israeli tech companies. | |||||
| BurTech Acquisition (BRKHU) | $250M | $333M | 0% | n/a | n/a |
| Blank check company targeting the retail, lifestyle, hospitality, tech, and real estate markets. | |||||
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Two IPOs submitted initial filings. Commercial REIT Modiv (MDV) filed to raise $84 million, and holding company The Marygold Companies (MGLD) filed for a $24 million uplisting.
Six SPACs submitted initial filings led by TMT-focused Twelve Seas Investment IV TMT (TSIVU), which filed to raise $200 million.
| 8 Filings During the Week of December 6th, 2021 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Blue World Acquisition (BWAQU) | $80M | SPAC | Maxim |
| Blank check company targeting marine-related businesses. | |||
| JJ Opportunity (JJOCU) | $50M | SPAC | Maxim |
| Blank check company targeting fintech, software services, and technology. | |||
| Consilium Acquisition I (CSLMU) | $150M | SPAC | BTIG |
| Blank check company formed by Consilium Investment Management targeting "new economy sectors". | |||
| Golden Star Acquisition (GSA.RC) | $100M | SPAC | Ladenburg |
| Blank check company targeting strategically significant businesses in the Asian markets. | |||
| Viscogliosi Brothers Acq. (VBOC.U) | $75M | SPAC | Raymond James |
| Blank check company targeting the North American and European neuro-musculoskeletal industry. | |||
| Modiv (MDV) | $84M | Real Estate | B. Riley |
| Single-tenant net lease REIT with 38 retail, office, and industrial properties in the US. | |||
| The Marygold Companies (MGLD) | $24M | Industrials | Maxim |
| Holding company with subsidiaries in fund management, food and beauty products, and security. | |||
| Twelve Seas IV TMT (TSIVU) | $200M | SPAC | Mizuho |
| Blank check company targeting the global TMT sector. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/9/21, the Renaissance IPO Index was down 9.1% year-to-date, while the S&P 500 was up 24.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Moderna (MRNA). The Renaissance International IPO Index was down 25.9% year-to-date, while the ACWX was up 6.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
