U.S. IPO Weekly Recap: Coupang Completes Year's Largest IPO And Roblox Direct-Lists In A 7 IPO Week

Mar. 14, 2021 1:11 PM ETCPNG, RBLX, HAYW, RXDX, JOAN, LBPH, PFE, FHS, STKH, SYM, FRXB.U, DTOCU, CFFEU, AGGRU, SBII.U, PDOT.U, OUST, SOUN, SLNH, SVFB, ACQRU, FRNT, DISAU

Summary

  • In the largest US IPO of the year to date, Coupang upsized and priced above the upwardly revised range to raise $4.6 billion at a $62.9 billion market cap.
  • Online gaming platform, Roblox, completed the year's first direct listing, opening 43% above its reference price and beginning trading at $64.50 for an implied $41.8 billion market cap.
  • 24 SPACs raised $6.6 billion this past week, led by Vector Capital's second tech-focused blank check company Vector Acquisition II, which raised $450 million.

A total of 32 companies entered the public market this past week, with the week's 7 IPOs joined by one direct listing and 24 SPACs.

In the largest US IPO of the year to date, Coupang (CPNG) upsized and priced above the upwardly revised range to raise $4.6 billion at a $62.9 billion market cap. The largest e-commerce player in Korea, Coupang nearly doubled revenue in 2020 and has expanded its margins in recent years. Coupang is unprofitable, and significant investments in fulfillment will weigh on cash flow in the near term. Coupang finished the week up 39%.

Online gaming platform Roblox (RBLX) completed the year's first direct listing, opening 43% above its reference price and beginning trading at $64.50 for an implied $41.8 billion market cap. Unprofitable with strong free cash flow, the company's growth has been accelerated by the pandemic. However, it relies on just 1% of players for all of its revenue. From its opening price, Roblox finished up 8%.

Pool equipment supplier Hayward Holdings (HAYW) priced at the low end to raise $685 million at a $4.1 billion market cap. The company is profitable and has generated strong and improving margins. Revenue growth has been inconsistent, though it accelerated in 2020 as COVID-19 accelerated interest in outdoor living spaces. Hayward finished flat.

IBD biotech Prometheus Biosciences (RXDX) further upsized and priced at the top of the upwardly revised range to raise $190 million at a $782 million market cap. Its lead candidate began a Phase 1a trial in healthy volunteers in December 2020, and is expected to start a Phase 2 trial in ulcerative colitis and a Phase 1b trial in Crohn's disease in the 3Q21, with data readouts in the 2H22. Prometheus finished up 33%.

Fabric and crafts retailer JOANN (JOAN) priced well below the range to raise $131 million at a $505 million market cap. Boosted by stay-at-home orders, the company has recently improved margins and profitability. While it has a poor long-term growth track record, JOANN has seen growth in both comp store sales and its e-commerce segment, though it may revert post-pandemic. JOANN finished up 2%.

Neuro disease biotech Longboard Pharmaceuticals (LBPH) priced at the high end to raise $80 million at a $283 million market cap. Formed by Arena Pharmaceuticals (ARNA), Longboard's lead candidate is being advanced in a multiple-ascending dose portion of a Phase 1 trial. The company expects to initiate a Phase 1b/2a trial for the treatment of developmental and epileptic encephalopathies in the 1Q22. Longboard finished up 4%.

First High-School Education Group (FHS) priced at the midpoint to raise $75 million at a $289 million market cap. Originally established to provide after-school tutoring services, First High-School has since developed a network of 19 schools, becoming the third largest operator in China by student enrollment as of December 31, 2019. First High-School finished down 24%.

Tel Aviv-listed MeaTech 3D (MITC) raised $25 million at a $119 million market cap. MeaTech 3D is initially focused on developing cultured meat steak technology. In the 3Q20, the company successfully printed meat tissue from stem cells. The company has not generated any revenues and does not expect to in the near term. MeaTech 3D finished down 3%.

24 SPACs raised $6.6 billion this past week, led by Vector Capital's second tech-focused blank check company Vector Acquisition II (VAQC), which raised $450 million.

32 IPOs During the Week of March 8th, 2021
Issuer
Business
Deal
Size
Market Cap
at IPO
Price vs.
Midpoint
First Day
Return
Return
at 03/12
Roblox (RBLX) $8,951M $29,111M 0% +54% +55%
Online platform where users can develop and play video games.
Coupang (CPNG) $4,550M $62,928M 23% +41% +38%
Korea's largest e-commerce site.
Prometheus Biosciences (RXDX) $190M $782M 12% +33% +33%
Phase 1 biotech developing precision antibody therapies for IBD and related diseases.
SVF Investment 3 (SVFC) $280M $350M 0% +3% +4%
Fourth blank check company formed by SoftBank targeting technology-enabled sectors.
SVF Investment 2 (SVFB) $200M $250M 0% +3% +4%
Third blank check company formed by SoftBank targeting technology-enabled sectors.
Longboard Pharmaceuticals (LBPH) $80M $283M 7% +4% +4%
Phase 1 biotech formed by Arena Pharmaceuticals developing medicines for neurological diseases.
Frontier Acquisition (FRONU) $200M $256M 0% +1% +3%
Blank check company targeting the biotechnology sector.
FTAC Parnassus Acq. (FTPAU) $220M $303M 0% +2% +2%
Ninth blank check company formed by management of The Bancorp to acquire a fintech business.
JOANN (JOAN) $131M $505M -25% +2% +2%
Multi-channel fabric and crafts retailer with 855 stores.
Gores Technology Partners (GTPAU) $240M $300M 0% +2% +2%
Ninth blank check company formed by The Gores Group targeting a tech business.
Independence Holdings (ACQRU) $435M $544M 0% +0% +1%
Blank check company led by the founders of FT Partners and Sagemount targeting tech and fintech.
Gores Tech Partners II (GTPBU) $400M $500M 0% +1% +1%
Tenth blank check company formed by The Gores Group targeting a tech business.
L Catterton Asia Acq. (LCAAU) $250M $313M 0% +1% +1%
Blank check company led by L Catterton Asia executives targeting consumer technology.
Ross Acquisition II (ROSS.U) $300M $375M 0% +1% +1%
Blank check company formed by Wilbur Ross and the co-founders of BroadPeak Global.
Silver Spike Acq. II (SPKBU) $250M $313M 0% +0% +0%
Second blank check company formed by Silver Spike Capital targeting the cannabis industry.
Forest Road Acq. II (FRXB.U) $305M $381M 0% +0% +0%
Second blank check company formed by Forest Road targeting TMT businesses.
Digital Trans. Opp. (DTOCU) $300M $375M 0% +0% +0%
Blank check company targeting the healthcare and healthcare technology sectors.
CF Acquisition VIII (CFFEU) $220M $281M 0% +0% +0%
Eighth blank check company formed by Cantor Fitzgerald.
Hayward Holdings (HAYW) $685M $4,120M -6% +0% +0%
Leading supplier of pool equipment and systems.
Stratim Cloud Acquisition (SCAQU) $250M $313M 0% +0% +0%
Blank check company led by the founder of SonicWALL targeting software.
Agile Growth (AGGRU) $300M $375M 0% +0% +0%
Blank check company led by tech CEO and investor Jay Bhatt targeting technology.
Vector Acquisition II (VAQC) $450M $563M 0% +0% +0%
Second blank check company formed by Vector Capital targeting the tech industry.
Sandbridge X2 (SBII.U) $220M $275M 0% +0% +0%
Second blank check company formed by Sandbridge Capital targeting a consumer business.
ESM Acquisition (ESM.U) $300M $375M 0% +0% +0%
Blank check company formed by The Energy & Minerals Group and former Xstrata CEO Mick Davis.
Peridot Acquisition II (PDOT.U) $360M $450M 0% +0% +0%
Second blank check company formed by Carnelian Energy Capital targeting businesses with a positive environmental impact.
Colonnade Acquisition II (CLAA.U) $300M $375M 0% +0% +0%
Second blank check company formed by the founders of Colonnade Properties and Trafelet & Company.
PWP Forward Acquisition I (FRWAU) $200M $250M 0% +0% +0%
Blank check company backed by Perella Weinberg targeting women-forward companies.
Pine Technology Acq. (PTOCU) $300M $375M 0% +0% +0%
Blank check company formed by past and present AmTrust Financial executives and Stone Point Capital.
Archimedes Tech SPAC (ATSPU) $120M $158M 0% -1% -1%
Blank check company targeting AI, cloud services, and auto-tech.
G&P Acquisition (GAPA.U) $175M $219M 0% -1% -1%
Blank check company targeting the leisure, craft brewing and distilling, automotive, and distribution sectors.
MeaTech 3D (MITC) $25M $119M -32% -3% -3%
Developing cultured meat products using proprietary 3D bioprinting technology.
First High-School Group (FHS) $75M $289M 0% -12% -24%
Operates private high schools and provides tutoring services in China.

Six IPOs joined the pipeline this past week. Digital banking platform Alkami Technology (ALKT) filed for an estimated $250 million IPO. Low-cost airline Frontier Group Holdings (FRNT), cross-border e-commerce platform Global-E Online (GLBE), and Chinese charging station provider Smart Share Global (EM) all filed to raise $100 million. OTC-listed Mechanical Technology (MKTY) filed for a $12 million Nasdaq uplisting, and micro-cap online gambling platform eSports Technologies (EBET) filed to raise $10 million.

46 SPACs submitted initial filings, led by the Virgin Group's third SPAC Virgin Group Acquisition III (VIII.U), which filed to raise $500 million.

52 Filings During the Week of March 8th, 2021
Issuer
Business
Deal
Size
Sector Lead
Underwriter
1Sharpe Acquisition (UNOOU) $225M SPAC Barclays
Blank check company formed by 1Sharpe Capital targeting PropTech and FinTech businesses.
Able Brands (ABCOU) $225M SPAC Goldman
Blank check company formed by Able Partners targeting "better-for-you" consumer-facing businesses.
C&W Acquisition (CWAU.RC) $250M SPAC Citi
Blank check company formed by Cushman & Wakefield targeting real estate and proptech.
FirstMark Acquisition II (FMIIU.RC) $200M SPAC Credit Suisse
Second blank check company formed by FirstMark Capital targeting technology.
SDCL EDGE Acquisition (SEDA.U) $250M SPAC Goldman
Blank check company formed by Sustainable Development Capital.
SEP Growth Holdings (SEPGU) $250M SPAC Citi
Blank check company formed by Sumeru Equity Partners targeting the enterprise technology sector.
Smart Share Global (EM) $100M Technology Goldman
Provides a network of mobile device charging stations in China.
Thunder Bridge Capital IV (THCPU) $225M SPAC Morgan Stanley
Fourth blank check company led by Gary Simanson targeting the fintech industry.
AA/CI Acquisition (AACE.U) $250M SPAC Goldman
Blank check company formed by Alexandria Real Estate Equities targeting agtech and climate innovation.
BCC Investment (BCIC.U) $300M SPAC Goldman
Blank check company formed by Bain Capital Credit.
Brimstone Acquisition (BRIM.U) $250M SPAC Citi
Blank check company targeting consumer products and industrial goods.
Catalyst Partners Acq. (CPARU) $400M SPAC Goldman
Blank check company formed by General Catalyst targeting disruptive enterprise software.
N2 Acquisition (NTWO.U) $450M SPAC Credit Suisse
Blank check company formed by the founders of TOMS Capital and Mariposa Capital.
Ocean Drive Acquisition (ODACU) $250M SPAC Jefferies
Blank check company targeting businesses providing tech solutions to the real estate industry.
Quinzel Acquisition (QNZLU) $200M SPAC Cantor Fitz.
Blank check company formed by Gotham Asset Management.
Sizzle Acquisition (SZZLU) $125M SPAC EarlyBird
Blank check company formed by Salis Holdings targeting restaurant, hospitality, and other businesses.
SPGL Acquisition (SPGLU) $250M SPAC Goldman
Blank check company formed by Summit and Gaas Labs targeting semiconductors.
Valor Latitude Acq. (VLATU) $200M SPAC BofA
Blank check company formed by Valor Capital Group targeting tech-enabled Latin American businesses.
Alkami Technology (ALKT) $250M Technology Goldman
Provides an online banking SaaS platform to regional banks.
Cain Acquisition (CAINU) $250M SPAC Credit Suisse
Blank check company formed by Cain International targeting entertainment and real estate.
CIIG Capital Partners II (CIIGU) $300M SPAC UBS
Second blank check company formed by industry veterans targeting TMT.
eSports Technologies (EBET) $10M Consumer Discretionary Boustead
Operates an online gambling platform focused on esports and competitive gaming.
Hennessy Capital VI (HCVIU) $200M SPAC Citi
Blank check company formed by Hennessy Capital targeting US industrial technology.
HighCape Capital II (HCCRU) $200M SPAC Cantor Fitz.
Second blank check company formed by HighCape Capital targeting life sciences.
Mechanical Technology (MKTY) $12M Technology Univest Sec.
Provides analytical tools and solutions for industrial and other industries.
Rice Acquisition II (RONI.U) $250M SPAC Citi
Second blank check company led by former Rice Energy execs targeting energy transition and sustainability.
Springwater Special Sit. (SWSSU) $150M SPAC EarlyBird
Blank check company led by the founder of Springwater Capital.
Trinity Acquisition (TRNY.U) $250M SPAC Goldman (Asia)
Blank check company targeting consumer lifestyle businesses with China potential.
AdMY Technology Group (ADMYU.RC) $250M SPAC Goldman
Fifth blank check company formed by Niccolo de Masi and Harry You.
Beard Energy Transition (BRDU) $250M SPAC Citi
Blank check company targeting electric power grid opportunities.
Data Knights Acquisition (DKDCU) $100M SPAC Kingswood Cap. Mkts.
Blank check company focusing on the data centers and internet technology sectors.
Excelsa Acquisition (XLSAU) $250M SPAC Credit Suisse
Blank check company formed by the founder of Intercorp Perú targeting "Latin America Growth Industries".
GigCapital5 (GIA.U) $350M SPAC Oppenheimer
Fifth blank check company led by semiconductor veteran Avi Katz.
GigCapital6 (GIFFU) $350M SPAC Oppenheimer
Sixth blank check company formed by semiconductor veteran Avi Katz.
New Beginnings Acq. II (NBAB.U) $100M SPAC Ladenburg
Second blank check company led by the co-founder of Crescent Heights and an Alliant Insurance Services exec.
New Beginnings Acq. III (NBAD.U) $100M SPAC Ladenburg
Third blank check company led by the co-founder of Crescent Heights and an Alliant Insurance Services exec.
Panacea Acquisition II (PANA) $150M SPAC Cowen
Second blank check company formed by EcoR1 Capital targeting the biotech industry.
Schultze Special II (SAMAU) $200M SPAC Stifel
Second blank check company formed by distressed debt investor George Schultze.
Virgin Group Acq. III (VIII.U) $500M SPAC Credit Suisse
Third blank check company formed by the Virgin Group.
Angel Pond Holdings (APHU.RC) $300M SPAC Goldman (Asia)
Blank check company focusing on technology-enabled sectors in Greater China.
Chardan NexTech Acq. 2 (CNTQU) $100M SPAC Chardan
Blank check company formed by Chardan targeting disruptive healthtech and fintech.
Corsair Partnering Corp (CORS.U) $350M SPAC Evercore ISI
Blank check company formed by Corsair Capital targeting the financial and business services sectors.
Disruptive Acquisition I (DISAU) $250M SPAC Credit Suisse
Blank check company formed by Disruptive.
Frontier Group Holdings (FRNT) $100M Industrials Citi
Ultra low-cost US airline carrier that serves approximately 110 airports.
FTAC Zeus Acquisition (ZINGU) $440M SPAC Morgan Stanley
Eleventh blank check company formed by management of The Bancorp to acquire a fintech business.
Gefen Landa Acquisition (GFLDU) $250M SPAC BofA
Blank check company formed by Gefen Capital and the Landa group targeting Israeli-related tech.
Global-E Online (GLBE) $100M Technology Goldman
Provides a platform for cross-border e-commerce.
Revolution Acc. Acq. II (RAIIU) $250M SPAC Credit Suisse
Blank check company focusing on innovation, government policy, and regulation.
TPG Pace Beneficial II (YTPG) $350M SPAC Deutsche Bank
Blank check company formed by TPG Pace Group targeting a business with a strong ESG profile.
TPG Pace Solutions (TPGS) $250M SPAC Deutsche Bank
Blank check company formed by TPG targeting mature businesses underperforming their potential.
TPG Pace Tech Opps II (TPGT) $450M SPAC Deutsche Bank
Blank check company formed by TPG Pace Group targeting the tech industry.
Trajectory Alpha Acq. (TCOA.U) $150M SPAC Guggenheim
Blank check company targeting a disruptive technology-driven business.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/11/21, the Renaissance IPO Index was up 2.5% year-to-date, while the S&P 500 was up 4.9%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Uber (UBER) and Zoom Video (ZM). The Renaissance International IPO Index was down 1.7% year-to-date, while the ACWX was up 5.5%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include SoftBank and Nexi.

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

This article was written by

Renaissance Capital provides pre-IPO research to institutional investors and investment banks. The Firm manages two IPO-focused funds: The Renaissance IPO ETF (NYSE: IPO) and the Renaissance International IPO ETF (NYSE: IPOS). Individual investors can get a free overview of the IPO market on www.renaissancecapital.com, and try a free trial of our premium platform, IPO Pro (ipopro.renaissancecapital.com). Through Renaissance Capital’s pre-IPO research service, institutional investors get an independent opinion, in-depth fundamental analysis, and customizable financial models on all IPOs.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.