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US IPO Weekly Recap: The IPO market gears up for fall with wave of filings in a 2 IPO week

Two foreign electric vehicle makers and three SPACs went public this past week. A wave of filings brought 27 companies into the IPO pipeline.


Xpeng
(XPEV), a Chinese electric vehicle maker, upsized and priced above the range to raise $1.5 billion at an $11.2 billion market cap. While the company has yet to achieve positive gross margins, its P7 model has seen strong early reception, and it came to market below close peers Li Auto (LI) and NIO (NIO), both of which have performed well. Insiders and a new investor indicated on $500 million of the IPO. Xpeng popped 41% on its first day of trading and finished up 52%.

Canadian electric commercial vehicle maker GreenPower Motor (GP) upsized and priced within the range to raise $37 million at a $361 million market cap. The company is currently listed on the TSX Venture Exchange (GPV) and the OTCQB (GPVRF). Fast growing and unprofitable, the company’s gross margin has been decreasing, and it has yet to establish an ongoing source of revenue. GreenPower finished 5%.

Three SPACs raised $1.6 billion this week, led by FTAC Olympus Acquisition (FTOCU), the fourth SPAC formed by The Bancorp’s management, which raised $750 million to acquire a fintech business. Cantor Fitzgerald’s second SPAC CF Finance Acquisition II (CFIIU) raised $500 million and tech SPAC Burgundy Technology Acquisition (BTAQU) raised $300 million.

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27 companies joined the pipeline this past week.

Secretive data unicorn Palantir (PLTR) and collaboration software unicorn Asana (SANA.RC) both filed for direct listings on the NYSE. Database software provider Snowflake (SNOW) filed to raise an estimated $2 billion, video game development platform Unity Software (U) filed to raise an estimated $1 billion, food and beverage packaging manufacturer Pactiv Evergreen (PTVE) filed to raise an estimated $750 million, and drug price comparison platform GoodRx (GDRX) filed to raise an estimated $750 million .

Nine companies filed to raise $100 million: Phase 2/3 neurodegeneration biotech Athira Pharma (ATHA), British Phase 2 psilocybin biotech COMPASS Pathways (CMPS), preclinical rare muscular disease biotech Dyne Therapeutics (DYN), telehealth platform Amwell (AMWL), app development software provider JFrog (FROG), Phase 1 NASH biotech Metacrine (MTCR), private market investment firm StepStone Group (STEP), cloud management software provider Sumo Logic (SUMO), and Brazilian distance learning provider Vitru (VTRU).

Phase 2 fibromyalgia biotech Virios Therapeutics (VIRI) filed to raise $35 million, Chinese electric vehicle retailer Jiuzi Holdings (JZXN) filed to raise $31 million, and enterprise security software provider Intrusion (INTZ) filed to raise $20 million.

Nine SPACs submitted initial filings. Ribbit Capital’s fintech SPAC Ribbit LEAP (RBLP.RC) filed to raise $350 million, former House speaker Paul Ryan’s SPAC Executive Network Partnering (ENPC.U) filed to raise $300 million, industrials SPAC Equity Distribution Acquisition (EQD.U) filed to raise $300 million, Tortoise Investments’ second SPAC Tortoise Acquisition II (SNPR.U) filed to raise $250 million, TD Ameritrade Chairman Joseph Moglia’s SPAC FG New America Acquisition (FGNA.U) filed to raise $225 million, Jupiter Acquisition (JAQCU) filed to raise $200 million to acquire a consumer or TMT business, Sandbridge Capital’s consumer SPAC Sandbridge Acquisition (SBG.U) filed to raise $200 million, Good Works Acquisition (GWACU) filed to raise $150 million to acquire a distressed or restructured business, and fintech SPAC byNordic Acquisition (BYNOU) filed to raise $100 million.

27 Filings During the Week of August 24th, 2020
Issuer
Business
Deal
Size
Sector Lead
Underwriter
byNordic Acquisition (BYNOU) $100M SPAC KBW
Blank check company targeting a fintech business in northern Europe.
COMPASS Pathways (CMPS) $100M Health Care Cowen
British Phase 2 biotech developing a psilocybin-based therapy for depression.
Equity Distribution Acq. (EQD.U) $300M SPAC Credit Suisse
Blank check company formed by Sam Zell’s Equity Group Investments to acquire an industrials business.
GoodRx (GDRX) $750M Technology Morgan Stanley
Operates a prescription drug price comparison platform.
Virios Therapeutics (VIRI) $35M Health Care ThinkEquity
Phase 2 biotech developing novel antiviral therapies for fibromyalgia and other diseases.
Athira Pharma (ATHA) $100M Health Care Goldman
Phase 2/3 biotech developing small molecule therapies for neurodegeneration.
FG New America Acq. (FGNA.U) $225M SPAC Piper Sandler
Blank check company led by TD Ameritrade Chairman Joseph Moglia targeting insurtech and fintech businesses.
Jiuzi Holdings (JZXN) $31M Consumer Discretionary Boustead Securities
New energy vehicle retailer in China.
Dyne Therapeutics (DYN) $100M Health Care JP Morgan
Preclinical biotech developing oligonucleotide therapies for rare muscular diseases.
Good Works Acquisition (GWACU) $150M SPAC I-Bankers
Blank check company targeting a business experiencing financial distress or restructuring.
Intrusion (INTZ) $20M Technology B. Riley FBR
Provides a family of software products for enterprise security.
Jupiter Acquisition (JAQCU) $200M SPAC Nomura
Blank check company formed by SPAC veteran James Hauslein targeting the consumer and TMT sectors.
Palantir (PLTR) $0M Technology
Data analytics platform focused on the government and financial sectors.
Ribbit LEAP (RBLP.RC) $350M SPAC JP Morgan
Blank check company formed by Ribbit Capital targeting a fintech business.
Amwell (AMWL) $100M Health Care Morgan Stanley
Provides a telehealth platform for insurers and patients.
Asana (SANA.RC) $0M Technology
Provides enterprise task management and collaboration software.
Executive Network (ENPC.U) $300M SPAC Evercore ISI
Blank check company formed by Paul Ryan, Solamere Capital, and Vivint Solar co-founder Alex Dunn.
JFrog (FROG) $100M Technology Morgan Stanley
Sells software tools that streamline app development.
Metacrine (MTCR) $100M Health Care Jefferies
Phase 1 biotech developing FXR agonist therapies for NASH.
Pactiv Evergreen (PTVE) $750M Materials Credit Suisse
The largest manufacturer of fresh food and beverage packaging in North America.
Sandbridge Acquisition (SBG.U) $200M SPAC Citi
Blank check company formed by Sandbridge Capital targeting a consumer business.
Snowflake (SNOW) $2,000M Technology Goldman
Provides cloud-based SQL database software and warehousing.
StepStone Group (STEP) $100M Financials JP Morgan
Global private markets investment firm.
Sumo Logic (SUMO) $100M Technology Morgan Stanley
Provides on-demand cloud log management solutions to enterprises.
Tortoise Acquisition II (SNPR.U) $250M SPAC Barclays
Second blank check company formed by Tortoise Investments targeting the energy industry.
Unity Software (U) $1,000M Technology Goldman
Provides a real-time 3D video game development platform.
Vitru (VTRU) $100M Consumer Discretionary Goldman
Leading provider of distance learning in Brazil’s postsecondary digital education market.

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IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/27/20, the Renaissance IPO Index was up 52.4% year-to-date, while the S&P 500 was up 7.7%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Zoom Video (ZM) and Uber (UBER). The Renaissance International IPO Index was up 37.9% year-to-date, while the ACWX was down 3.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Xiaomi and Meituan-Dianping.The article US IPO Weekly Recap: The IPO market gears up for fall with wave of filings in a 2 IPO week originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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