US Weekly IPO and SPAC Monitor : KinderCare & Braze

Heading into Thanksgiving another busy week ahead in the IPO market with 7 IPOs scheduled to bring in $1.9 billion. Childcare provider KinderCare Learning Companies $KLC and customer engagement platform Braze $BRZE


Childcare provider KinderCare Learning Companies (KLC)

Plans to raise $503 million at a $2.7 billion market cap. The company serves children from 6 weeks to 12 years of age through 1,480 early childhood education centers and 650 before- and after-school sites across 40 states and Washington DC. While KinderCare is a leader in the early childhood education market, its business been significantly disrupted by the pandemic.

Customer engagement platform Braze (BRZE)

Plans to raise $460 million at a $5.9 billion market cap. Founder-led Braze provides a customer engagement platform used by businesses to improve their marketing. Unprofitable with strong growth, Braze serves over 1,100 clients with net revenue retention of 120%+ as of 7/31/21.

Fast casual salad chain Sweetgreen (SG)

Fast casual salad chain Sweetgreen (SG) plans to raise $300 million at a $2.9 billion market cap. The company has a strong digital presence and plans double its store count in the next three to five years, though it has yet to achieve profitability.

Sweetgrain Salads

Sweetgreen states that it is one of the fastest-growing restaurant companies in the US by revenue. As of September 26, 2021, the company owned and operated 140 restaurants in 13 states and Washington, DC, and it grew its restaurant presence at a 27% CAGR from 2014 to 2020.

Sweetgreen plans to list on the NYSE under the symbol SG. Goldman Sachs, J.P. Morgan, Allen & Company, Morgan Stanley, Citi, Cowen, Oppenheimer & Co., RBC Capital Markets, and William Blair acted as joint bookrunners on the deal.

Video-first customer feedback platform UserTesting (USER)

Plans to raise $227 million at a $2.6 billion market cap. The company provides a video-first customer feedback platform for enterprises, providing richer, more contextualized insights by capturing various human signals. Its customers include a diverse base of more than 2,100 enterprises, with strong net dollar-based retention. However, it remains unprofitable due to high S&M spend.

Australian Bitcoin mining company Iris Energy (IREN)

Australia’s Iris Energy (IREN), a Bitcoin mining company primarily powered by renewable energy, plans to raise $232 million selling 8.3 million shares through its IPO offering. It raised its initial public offering (IPO) pricing to $28 per share from the previous expected range of $25 to $27. It expects to start trading on the Nasdaq on Nov. 19 under the ticker symbol IREN.

The company will have about 55 million shares outstanding, valuing the company at around $1.5 billion. Iris acquired its first site in British Columbia in January 2021, which has approximately 30 MW of capacity and operating hashrate capacity of 0.7EH/s. The company is dependent on the Bitcoin market, and while prices have risen near all-time highs, it remains highly volatile. Iris will use the proceeds from the offering to fund its growth initiatives, including hardware purchases and acquisition and development of data center sites and facilities, as well as for working capital and general corporate purposes.

The company said it has been mining bitcoin since 2019 and has sold all the bitcoin it mined, bucking the trend of most miners holding onto their coins.

German disruptive solar technology company Sono Group (SEV)

Germany-based Sono Group (SEV) plans to raise $150 million at a $1.1 billion market cap. The company is developing what it believes is disruptive solar technology, as well as a solar and battery powered vehicle. Despite already accepting 16,000 pre-orders worth $390 million in net sales, it is not expected to reach commercialization until 2023, and will remain highly unprofitable for years.    

The company expects common shares to begin trading on the Nasdaq Global Market on November 17, 2021, under the ticker symbol “SEV.”

Read: German Solar Electric Vehicle Disruptor Sono Group IPO Debut

Canadian gold exploration company Austin Gold (AUST)

Plans to raise $15 million at a $64 million market cap. The company currently has interests in four gold exploration properties located in the state of Nevada, with just one property that it considers material at this time. Austin Gold has not generated any operating revenues to date.

IPO Week Ahead

Street research is expected for 11 companies, and lock-up periods will be expiring for up to 11 companies.

 Source: Renaissance Capital

From The TradersCommunity News Desk