Eight companies, including a solar electric car company and a restaurant chain known for its salads, went public this week as the IPO market prepares to close for the Thanksgiving holiday.
New broadcasts are typically suspended during Thanksgiving, which this year falls on November 25. No IPO is scheduled for next week. Initial public offerings typically return in early December before taking a break later this month for the Christmas holidays. Nubank, the Brazilian digital lender targeting a valuation of nearly $ 51 billion, could be listed in December.
So far in 2021, 917 IPOs have raised $ 293.5 billion as of Nov. 16, according to Dealogic data. This is more than double the 356 offers for the same period in 2020, which raised $ 132.9 billion. About 60%, or 542, of the 917 IPOs this year are Special Purpose Acquisition Companies, or SPACs. This means that 375 are traditional IPOs.
This year’s IPO market has already broken records for money raised, while the number of new issues is likely to peak in 21 years with more than 400 deals, according to Matt Kennedy, senior IPO strategist at Renaissance Capital . “The IPO market in 2021 raised the most money ever,” Kennedy said. He noted that the more than 400 offerings will likely put this year’s offerings on par with the IPO boom of the late 1990s.
Four companies – Sono Group, Iris Energy, Braze and UserTesting – are expected to open on Wednesday.
The first is Sono Group, the German electric vehicle startup looking to take advantage of recent records for
(ticker: RIVN) last week. The electric truck maker has had the biggest IPO since 2014, when it raised $ 11.9 billion. Rivian’s shares have gained more than 29% from its IPO price of $ 78 on November 10. The stock has since more than doubled in the secondary market, closing Tuesday at $ 172.01.
“There’s a good chance Sono is doing very well depending on how Rivian trades,” said Kennedy, who noted that Sono, like Rivian, is at an early stage and unprofitable.
Launched in 2016, Sono Group has developed the Sion, a solar electric car that can be recharged using solar panels installed outside. Sono said it has received more than 16,000 reservations for the car as of Nov. 5. However, no customer has entered into a binding purchase contract for the car. The purchase price of a Sion is 28,500 euros ($ 32,294) with a down payment starting at 500 euros ($ 566.57). Sono plans to start production and delivery of the Sion in the first half of 2023, the company’s website said.
Sono Group on Tuesday listed 10 million shares at $ 15, the middle of its $ 14-16 price range, a person familiar with the matter said. Berenberg and Craig-Hallum are the underwriters of the agreement.
Iris Energy is also expected to open on Wednesday. The Sydney, Australia company is offering around 8.3 million shares at $ 25 to $ 27 each, a flyer says. It will be listed on Nasdaq under the symbol IREN. JP Morgan, Canaccord Genuity and
are the main underwriters of the transaction.
Iris Energy has been mining Bitcoin since 2019. The company has liquidated all the bitcoin it has mined and has none on its balance sheet as of September 30. a flyer says. Crypto mining uses a lot of electricity, and Iris Energy has tried to position itself as environmentally and socially responsible. The company said its operations in British Columbia, Canada, are connected to the BC Hydro grid, whose electricity comes 98% from clean or renewable sources starting in 2021.
Iris Energy is the latest crypto miner to hit the market. In October,
Fortress digital mining
(SDIG) climbed 52% after valuing its IPO at $ 19 a share.
Braze and UserTesting are also traded on Wednesday, both of which are in the customer engagement space. Founded in 2011, Braze’s software helps more than 1,000 brands listen to and understand their customers. The company had 3.3 billion monthly active users as of July 31, up from 2.3 billion in January 2020. Braze offers 8 million shares at $ 55 to $ 60 each. It will be traded under the Nasdaq BRZE ticker.
JP Morgan and
are the primary underwriters.
UserTesting offers self-guided videos that help businesses better understand interactions with their customers. UserTesting has more than 2000 customers including
(MSFT), WebMD and Lowes. UserTesting offers approximately 14.2 million shares at $ 15 to $ 17. It will be traded under the NYSE USER ticker. Morgan Stanley and JP Morgan are the main underwriters of the transaction.
On Thursday, restaurant chain Sweetgreen and KinderCare Learning Companies, a daycare operator, are expected to chat. Launched in 2007, Sweetgreen is known for its salads and bowls that include Caesar kale and guacamole leaves, but it also offers hot bowls such as cauliflower curry, shroomami, and chicken tostada. The company currently owns and operates 140 restaurants in 13 states and Washington, DC Sweetgreen is offering 12.5 million shares at $ 23 to $ 25. It will be traded under the NYSE SG ticker. Goldman Sachs and JP Morgan are the main underwriters of the IPO.
KinderCare could raise as much as $ 541 million with its IPO, if it sits at the top of its expected range. The company offers 25.8 million shares at $ 18 to $ 21 each. Its NYSE symbol is KLC. KinderCare operates 1,490 early childhood education centers in 40 states and the District of Columbia. The company focuses on children, ages 6 weeks to 12 years, providing early childhood education and care.
an investment manager, acquired the company in 2016 and will hold nearly 73% after the IPO, according to a prospectus.
Finally, FinWise Bancorp is the only company currently scheduled to open on Friday. FinWise offers 3.18 million shares at $ 10 to $ 12 each. It will be traded on the Nasdaq under the ticker FINW. Piper Sandler and Stephens are the underwriters of the deal.
FinWise is a Utah digital bank that accepts deposits and provides loans to consumers and businesses across the United States. The bank was due to negotiate in August but postponed its agreement, after Renaissance.
Write to Luisa Beltran at [email protected]