US IPO Weekly Recap: Playtika and Affirm’s billion-dollar deals headline an 8 IPO week
In another busy week for the IPO market, eight IPOs and 24 SPACs went public, headlined by two billion-dollar deals. Activity shows no sign of letting up as 18 IPOs and 23 SPACs submitted initial filings.
Casino game developer Playtika Holding (PLTK) priced above the range to raise $1.9 billion at an $11.4 billion market cap. The company is a leading developer of social casino and other casual mobile games, and its portfolio contains nine of the top 100 grossing mobile games in the US. The company has demonstrated growth and strong margins, though relies on a small percentage of players for revenue. Playtika finished up 17%.
Affirm Holdings (AFRM), which offers “buy now pay later” loans for online purchases, priced above the upwardly revised range to raise $1.2 billion at a $14.8 billion market cap. Unprofitable and fast growing, the company is a leading player in the space, facilitating over $10.7 billion in GMV from 6.2 million customers over the last four years. Affirm finished up 139%.
Multi-channel pet care retailer Petco Health and Wellness (WOOF) priced above the range to raise $864 million at a $4.6 billion. The company has focused on growing its mix of owned brands and increased its e-commerce penetration. While its growth track record has been inconsistent, the company has seen a dramatic pick up in growth due to increased pet ownership during COVID-19. Petco finished up 54%.
Auto service group Driven Brands Holdings (DRVN) priced above the range to raise $700 million at a $3.6 billion market cap. A leading franchiser in North America, Driven Brands has over 4,100 locations across various services. Its franchised model supports strong margins and cash flow, though it is highly leveraged post-IPO. Driven Brands finished up 21%.
Fashion e-commerce platform Poshmark (POSH) raised $277 million at a $3.5 billion market cap and popped 142%, the best first-day performance of the week. With growing demand for secondhand apparel, gross merchandise value has grown 25%+ in six of the last seven quarters, though it operates in a highly competitive market and could face pressure on its take rate. Poshmark finished up 98%.
Motorspork Network spin-off Motorsport Games (MSGM) priced at the high end of the upwardly revised range to raise $60 million at a $340 million market cap. The company develops and publishes multi-platform racing video games and is currently the official developer and publisher of the NASCAR video game franchise. Motorsport Games finished up 50%.
Chinese classical music platform Kuke Music Holding (KUKE) priced at the low end to raise $50 million at a $308 million market cap. Kuke was China’s largest classical music licensing service provider and the second largest online classical music subscription service provider in 2019. The company’s quarterly growth has been lumpy, and revenue declined in both the FY 19 and 9mo20. Kuke finished up 1%.
Chinese chemicals maker Qilian International (QLI) priced at the low end to raise $25 million at a $175 million market cap. The company focuses on the development, manufacture, marketing, and sale of various products, including heparin and traditional Chinese medicine derivatives. The company is profitable but saw revenue decline in the FY19. Qilian finished up 75%.
In another busy week for blank check IPOs, 24 SPACs raised $6.8 billion, led by Thoma Bravo’s software-focused Thoma Bravo Advantage (TBA), which raised $900 million, and industrial tech SPAC Pontem Corp. (PNTM.U), which raised $600 million.
| 32 IPOs During the Week of January 11th, 2021 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 01/15 |
| Affirm (AFRM) | $1,205M | $14,752M | 38% | +98% | +139% |
| Offers “buy now pay later” loans for online purchases. | |||||
| Poshmark (POSH) | $277M | $3,473M | 14% | +142% | +98% |
| Peer-to-peer fashion e-commerce site. | |||||
| Qilian International (QLI) | $25M | $175M | -17% | +100% | +75% |
| Chinese producer of traditional medicines, chemicals, and fertilizers. | |||||
| Petco (WOOF) | $864M | $4,626M | 16% | +63% | +54% |
| Multi-channel pet care retailer with about 1,500 locations across North America. | |||||
| Motorsport Games (MSGM) | $60M | $340M | 18% | +75% | +50% |
| Leading developer of racing games being spun out of Motorsport Network. | |||||
| Driven Brands (DRVN) | $700M | $3,609M | 19% | +21% | +21% |
| North America’s largest automotive services company with more than 4,100 locations. | |||||
| Northern Genesis Acq. II (NGAB.U) | $360M | $450M | 0% | +19% | +21% |
| Blank check company targeting sustainability and societal infrastructure. | |||||
| Playtika (PLTK) | $1,877M | $11,372M | 17% | +17% | +17% |
| Leading developer of casino and other mobile games. | |||||
| Group Nine Acquisition (GNACU) | $200M | $250M | 0% | +11% | +11% |
| Blank check company formed by Group Nine Media targeting the media industry. | |||||
| Hennessy Capital V (HCICU) | $300M | $375M | 0% | +11% | +11% |
| Blank check company targeting US sustainable industrial technology and infrastructure. | |||||
| Fortress Capital Acq. (FCAX.U) | $350M | $438M | 0% | +8% | +10% |
| Blank check company formed by Fortress targeting financial services. | |||||
| Deep Lake Capital Acq. (DLCAU) | $180M | $225M | 0% | +7% | +10% |
| Blank check company led by former PayPal executives targeting the fintech sector. | |||||
| Hamilton Lane Alliance I (HLAHU) | $240M | $267M | 0% | +10% | +7% |
| Blank check company formed by Hamilton Lane. | |||||
| 890 5th Avenue Partners (ENFAU) | $250M | $320M | 0% | +5% | +6% |
| Blank check company targeting the technology, media, and telecommunications sectors. | |||||
| 26 Capital Acquisition (ADERU) | $240M | $300M | 0% | +6% | +6% |
| Blank check company formed by SpringOwl Asset Management targeting leisure, e-commerce, and consumer industries. | |||||
| Environmental Impact Acq. (ENVIU) | $180M | $225M | 0% | +7% | +5% |
| Blank check company formed by Canaccord targeting the sustainability sector. | |||||
| Marlin Technology (FINMU) | $360M | $450M | 0% | +4% | +5% |
| Blank check company formed by Marlin Equity Partners targeting the technology sector. | |||||
| Pontem Corp. (PNTM.U) | $600M | $750M | 0% | +3% | +4% |
| Blank check company targeting industrial technology businesses. | |||||
| OCA Acquisition (OCAXU) | $130M | $163M | 0% | +4% | +4% |
| Blank check company formed by Olympus Capital Asia targeting tech and financial services. | |||||
| Edify Acquisition (EACPU) | $240M | $300M | 0% | +4% | +4% |
| Blank check company formed by Colbeck Capital Management targeting the education sector. | |||||
| Athlon Acquisition (SWETU) | $240M | $300M | 0% | +5% | +4% |
| Blank check company formed by Causeway Media Partners targeting the health, wellness, and fitness space. | |||||
| Big Cypress Acquisition (BCYPU) | $100M | $129M | 0% | +4% | +4% |
| Blank check company targeting life sciences businesses in the US and Israel. | |||||
| Authentic Equity Acq. (AEACU) | $200M | $263M | 0% | +4% | +4% |
| Blank check company formed by Authentic Equity targeting a North American CPG business. | |||||
| Silver Crest Acquisition (SLCRU) | $300M | $375M | 0% | +3% | +4% |
| Blank check company formed by Ascendent Capital Partners targeting the consumer sector. | |||||
| Monument Circle Acq. (MONCU) | $218M | $273M | 0% | +5% | +4% |
| Blank check company formed by Emmis Communications targeting media and entertainment. | |||||
| Global Partner Acq. II (GPACU) | $275M | $344M | 0% | +3% | +4% |
| Blank check company targeting consumer, e-commerce, and retail disruptors. | |||||
| Adit EdTech Acquisition (ADEX.U) | $240M | $300M | 0% | +3% | +3% |
| Blank check company formed by Adit Ventures targeting the education sector. | |||||
| Healthcare Capital Corp. (HCCCU) | $240M | $300M | 0% | +3% | +3% |
| Blank check company targeting the healthcare industry. | |||||
| Kuke Music (KUKE) | $50M | $308M | -9% | +1% | +1% |
| Provides classical music licensing, subscription, and education services in China. | |||||
| Rotor Acquisition (ROT.U) | $240M | $300M | 0% | n/a | +0% |
| Blank check company led by former dealmakers at Credit Suisse and BofA targeting the industrial and consumer sectors. | |||||
| Thoma Bravo Advantage (TBA) | $900M | $1,147M | 0% | n/a | +0% |
| Blank check company formed by Thoma Bravo targeting a software business. | |||||
| Class Acceleration Corp (CLAS.U) | $225M | $281M | 0% | n/a | +0% |
| Blank check company led by venture investor Michael Moe targeting digital education. | |||||
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18 IPOs submitted initial filings. Online mortgage lender loanDepot (LDI) and dating app unicorn Bumble (BMBL) filed for $1.5 billion and $900 million estimated IPOs, respectively. Home healthcare equipment provider Apria (APR) filed for an estimated $800 million IPO. Preclinical cell therapy biotech Sana Biotechnology (SANA), advertising software maker Viant Technology (DSP), and cell therapy biotech Vor Biopharma (VOR) all filed to raise $150 million. Chinese e-commerce services provider WeTrade Group (WETG) filed for a $121 million Nasdaq uplisting and COVID-19 test kit maker Lucira Health (LHDX) filed to raise $115 million. Chinese education provider First High-School Education Group (FHS), autoimmune biotech Landos Biopharma (LABP), solid tumor biotech Bolt Biotherapeutics (BOLT), cancer biotech Immunocore Holdings (IMCR), COVID-19 test maker LumiraDx (LMDX), rare disease biotech Pharvaris (PHVS), cleaning product maker PurposeBuilt Brands (PBLT), cancer biotech Sensei Biotherapeutics (SNSE), and NASH biotech Terns Pharmaceuticals (TERN) all filed to raise $100 million. Phase 3 biotech Angion Biomedica (ANGN) filed to raise $75 million.
23 SPACs submitted initial filings, led by Michael Klein’s sixth and seventh SPACs Churchill Capital Corp. VI (CCVI.U) and Churchill Capital Corp. VII (CVIIU.RC), which filed to raise $400 million and $300 million, respectively.
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/14/2021, the Renaissance IPO Index was up 7.9% year-to-date, while the S&P 500 was up 1.1%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Peloton Interactive (PTON). The Renaissance International IPO Index was up 1.6% year-to-date, while the ACWX was up 4.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.
The article US IPO Weekly Recap: Playtika and Affirm’s billion-dollar deals headline an 8 IPO week originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.
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