The 2021 initial public offering (IPO) market launched into the year with a record start, with the most special purpose acquisition companies going public in a single week. Last week saw the introduction of 28 SPACs raising over $6.7 billion. For comparison, it took five months in 2020 for the same amount of SPACs to price, and 2020 was a hot market year for blank check companies.
Last week also saw the listing of two traditional IPOs, with both raising a combined total of $459 million, giving the new year's market a healthy start. Filing activity was also raised, with many would-be 2020 IPOs looking to get into the public market as soon as possible since the market settled following the December blockbuster debuts of Airbnb (ABNB ) and DoorDash (DASH ).
Cullinan Management, Inc. (CGEM ) raised the largest offering last week, pricing its upsized offering above the upwardly revised range at $21 per share to raise $250 million at a $953 million market capitalization. The oncology-focused biotech is developing a portfolio of therapies and its lead candidate is currently in Phase I/II clinical trials. The stock finished the week up 42%.
Gracell Biotechnologies Inc. (GRCL ) followed, pricing its offering above the range at $19 per share to raise $209 million at a $1.3 billion market cap. The Chinese oncology-focused biotech has currently two treatment candidates in Phase I clinical trials, with data expected by the second half of 2021 and 2022, respectively. The stock finished the week strong, rising 32% from its pricing.
The IPO market is heating up for the week ahead, with six traditional IPOs from a variety of industries looking to raise a combined total of about $5 billion.
Leading the week, Playtika Holding Corp. (PLTK ) plans to raise about $1.9 billion from 69.5 million shares priced in the range of $22-$24 each. The video game developer's portfolio included mostly casino-based mobile games, with the company growing its game collection primarily through acquisitions. Playtika is profitable and is apart of the growing mobile gambling industry that is becoming more popular through U.S. state legalization.
In the week's second $1 billion IPO, Affirm Holdings, Inc. (AFRM ) plans to raise over $1 billion from 24.6 million shares priced between $33-$38 each. The online fintech/loan service provider platfrom its apart of the growing "buy now, pay later" ecommerce industry, with the firm completing over 17.3 million transactions with over 6,500 merchants and 6.2 million consumers as of Sept. 30.
Petco Health and Wellness Company, Inc. (WOOF ) plans to raise $938 million from 48 million shares priced between $14 to $17 each. With consumers spending more on their pets than ever before and pet ownership becoming increasingly popular during the pandemic, Petco hopes to cash in on this shift trending demand. The company has also benefited from its growing online segment, which competes with ecommerce platforms like Chewy (CHWY ).
Driven Brands Holdings Inc. (DRVN ) plans to raise $874 million from 38 million shares priced in the range of $17 to $20 each. Being North America's largest auto services company, the company's portfolio includes a range of brands and consists of 4,100 locations throughout the United States and 14 countries.
Poshmark, Inc. (POSH ) plans to raise over $296 million from 6.6 million shares priced between $35 to $39 each. The retail ecommerce platfrom operates in the growing secondhand apparel industry, with the company achieving profitability in 2020 from its trending popularity. However, Poshmark competes in a highly competitive market with big names like Etsy (ETSY ) amongst its rivals.
Qilian International Holding Group Ltd (QLI ) plans to raise over $40 million from 5 million shares priced in the range of $5 to $7 each. The Chinese chemicals manufacturer develops, produces, markets, and sells chemicals for a variety of consumer and commercial goods.
