US Weekly IPO and SPAC Monitor – Hertz and Rivian Automotive

Another busy week ahead in the IPO market with 11 IPOs scheduled to bring in $10.2 billion. Electric truck developer Rivian Automotive (RIVN) and Hertz Global Holdings (HTZ) are timely with the Tesla deal and infrastructure bill.

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Electric truck developer Rivian Automotive (RIVN)

Plans to raise $8.0 billion at a $57.1 billion market cap. This founder-led company is developing and manufacturing a portfolio of electric adventure-ready consumer and commercial SUVs, vans, and pickup trucks. Although the company is in very early stages of commercialization, Rivian began its first deliveries in September of 2021, Rivian is the first automaker to bring a battery-electric pickup to market in the U.S.  It’s also on track to make the most of its first-mover advantage when it starts deliveries of the R1S sport utility vehicle this year, giving it a lead in the market for full-size battery-electric SUVs.and has an order of 100,000 EDVs from Amazon through 2025 the internet giant owns a 20 percent stake in Rivian.

Rivian truck

While demand for Rivian’s products will likely outweigh supply for a number of years, the company faces a “natural ceiling” of 300,000 to 400,000 units per year, New Street Research analyst Pierre Ferragu wrote in a note Monday. That’s partly down to price: Rivian’s R1T truck starts at $67,500 for the most basic model, while its upcoming sport utility model is $70,000. “Above $70,000, the global addressable market for Rivian’s SUV and pickup is less than 1.5 million units, and it will be a crowded space,” Ferragu wrote.

Hertz Global Holdings (HTZ) Moves From OTC HTZZ

Hertz Global Holdings raised $1.3 billion by offering 44.5 million shares (100% secondary)at $29, the high end of the range of $25 to $29. The selling shareholders sold 7.4 million more shares than anticipated and the company expects to repurchase $300 million worth of shares in the offering from the underwriters. The company provides vehicle rental services globally primarily through the Hertz, Dollar, and Thrifty brands. Hertz filed for bankruptcy in May of 2020 and emerged this past June. The company is profitable, and revenue growth accelerated to 34% in the 9mo21.

Hertz cars

Hertz has been listed on the OTC (HTZZ) since June, and after rallying nearly 100% over the past two months, closed on Monday at $32.62 per share. Hertz Global Holdings plans to list on the Nasdaq under the symbol HTZ. Goldman Sachs, J.P. Morgan, Morgan Stanley, Barclays, and Deutsche Bank acted as joint bookrunners on the deal.

 Outsourced IT services provider CI&T (CINT)

Plans to raise $350 million at a $2.4 billion market cap. This Brazil-based company provides strategy, design, and software engineering services through a network of over 5,000 employees. Growing and profitable, CI&T’s blue-chip customer base includes Johnson & Johnson, Google, and Itaú Unibanco.

 Expensify (EXFY)

Plans to raise $234 million at a $2.4 billion market cap. Founder-led Expensify provides a mobile-first expense management platform, primarily helping SMBs simplify the expense approval process from initial receipt scan through next-day reimbursement. Addressing a multibillion-dollar opportunity within US SMBs, Expensify saw robust profitability in the 1H21, but its paid member base remains below pre-COVID levels.

Customer engagement platform Weave Communications (WEAV)

Plans to raise $133 million at a $1.9 billion market cap. The company provides a customer communication and engagement software platform to SMBs. Fast growing and unprofitable, Weave had more than 21,000 locations under subscription across approximately 20,000 customers in the US and Canada as of 6/30/21.

 Vaccine biotech Vaxxinity (VAXX)

Plans to raise $101 million at a $2.1 billion market cap. This Phase 2 biotech is developing vaccines therapies for chronic diseases using synthetic peptides. Vaxxinity’s lead candidate, UB-311, is being developed for the treatment of Alzheimer’s Disease and is scheduled to start a Phase 2b efficacy trial in 2022.

Online fashion retailer Lulu’s Fashion Lounge Holdings (LVLU)

Plans to raise $101 million at a $654 million market cap. Lulu’s sells apparel and accessories primarily to Millennial and Gen Z women. While its business took a hit during the pandemic, the company returned to profitability in the 1H21, and revenue growth accelerated to 24%.

 Storage cloud platform Backblaze (BLZE)

Plans to raise $100 million at a $644 million market cap. With over 480,000 customers across 175 countries, Backblaze provides a storage cloud platform to store, use, and protect data. The company has delivered solid growth, and it has maintained profitability on an EBITDA basis.

 Texas bank Third Coast Bank (TCBX)

Plans to raise $75 million at a $317 million market cap. This commercially-focused bank operates 12 branches, seven of which are in the Greater Houston market. As of 6/30/21, Third Coast Bank had total assets of $2.0 billion, total loans of $1.6 billion, total deposits of $1.8 billion, and total shareholders’ equity of $138 million.

 Laser communications firm Mynaric (MYNA)

Plans to raise $70 million at a $356 million market cap. Germany-based Mynaric develops and manufactures laser technologies for aerospace communications networks in government and commercial markets. The company is growing but highly unprofitable, with a -258% LTM gross margin.

 Turbine system maker FlexEnergy (FLXE)

Plans to raise $35 million at a $122 million market cap. This technology company designs, manufactures, and sells turbine systems and heat exchangers. FlexEnergy saw revenue shrink in both 2020 and the 1H21.

IPO Ahead W 11 5 2021

 Source: Renaissance Capital

From The TradersCommunity News Desk

One thought on “US Weekly IPO and SPAC Monitor – Hertz and Rivian Automotive”

  1. TradersCom says:

    US IPO Weekly Recap: Rivian completes the largest deal since Alibaba in a 15 IPO week
    November 12, 2021

    Weekly Recap
    It was another busy week for the IPO market as 15 new issuers went public, with Rivian (RIVN) in the spotlight. The pre-revenue electric truck developer became the largest IPO of 2021, raising nearly $12 billion in the largest IPO since Alibaba (NYSE: BABA) in 2014, and popped 29% in its public debut.

    Rivian Automotive (RIVN) upsized and priced well above the upwardly revised range to raise $11.9 billion at a $76.3 billion market cap. The founder-led company is launching a portfolio of electric adventure-ready consumer and commercial SUVs, vans, and pickup trucks. The company is still in the very early stages of commercialization, though it began its first deliveries in September of 2021. Rivian finished up 67%.

    Expensify (EXFY) priced at the high end of the upwardly revised range to raise $263 million at a $2.7 billion market cap. Founder-led Expensify provides a mobile-first expense management platform for SMBs. While its paid member base remains below pre-COVID levels, the company is addressing a multibillion-dollar opportunity and saw robust profitability in the 1H21. Expensify finished up 76%.

    Cloud storage platform Backblaze (BLZE) priced at the midpoint to raise $100 million at a $644 million market cap. With over 480,000 customers across 175 countries, Backblaze provides a storage cloud platform to store, use, and protect data. The company has delivered solid growth and maintained profitability on an EBITDA basis, though infrastructure investments have weighed on cash flow. Backblaze finished up 38%.

    Outsourced IT services provider CI&T (CINT) priced at the low end to raise $196 million at a $2.0 billion market cap. Based in Brazil, CI&T provides strategy, design, and software engineering services to customers including Johnson & Johnson, Google, and Itaú Unibanco. Growing and profitable, the company has averaged a net revenue retention rate of 118% over the past four years. CI&T finished up 33%.

    Laser communications firm Mynaric (MYNA) raised $66 million at a $336 million market cap. Germany-based Mynaric develops and manufactures laser technologies for aerospace communications networks in government and commercial markets. The company is growing but highly unprofitable, with a -258% LTM gross margin. Mynaric finished up 17%.

    Vaccine biotech Vaxxinity (VAXX) downsized and priced below the range to raise $78 million at a $1.8 billion market cap. The company is developing vaccines therapies for chronic diseases using synthetic peptides. Vaxxinity’s lead candidate, UB-311, is being developed for the treatment of Alzheimer’s Disease and is scheduled to start a Phase 2b efficacy trial in 2022. Vaxxinity finished up 4%.

    Commercially-focused Texas bank Third Coast Bank (TCBX) upsized and priced at the midpoint to raise $88 million at a $330 million market cap. Operates 12 branches, this bank had total assets of $2.0 billion, total loans of $1.6 billion, total deposits of $1.8 billion, and total shareholders’ equity of $138 million as of 6/30/21. Third Coast Bank finished flat.

    Dermatological drug maker Journey Medical (DERM) priced at the low end to raise $35 million at a $188 million market cap. Journey’s current portfolio includes five branded and three authorized generic prescription drugs for dermatological conditions that are marketed in the US. It anticipates remaining a majority-owned subsidiary of Fortress Biotech (Nasdaq: FBIO). Journey finished down 5%.

    Nasdaq uplisting Hertz Global Holdings (HTZ) upsized and priced at the high end to raise $1.3 billion at a $15.1 billion market cap. Hertz provides vehicle rental services globally primarily through the Hertz, Dollar, and Thrifty brands. The company is profitable, though its business is capex-intensive, and the company previously filed for bankruptcy. Hertz finished down 7%.

    Subscription service Kidpik (PIK) upsized and priced within the range to raise $18 million at a $65 million market cap. Kidpik provides kids’ clothing subscription boxes for boys and girls of varying sizes from toddler to youth. Unprofitable with solid growth, the company acquired its first member in 2016, and in April 2021, it shipped its millionth box. Kidpik finished down 11%.

    Online fashion retailer Lulu’s Fashion Lounge Holdings (LVLU) priced at the low end to raise $92 million at a $597 million market cap. Lulu’s sells apparel and accessories primarily to Millennial and Gen Z women. While the company has rebounded since the pandemic, it operates in a highly competitive industry. Lulu’s finished down 14%.

    After postponing in October, winery Winc (WBEV) priced at the midpoint to raise $22 million at a $176 million market cap. Winc states that it is one of the fastest growing at scale wineries in the US, and a pandemic-related increase in DTC demand caused a jump in revenue in 2020. The company is unprofitable and operates in a highly competitive market. Winc finished down 20%.

    Weave Communications (WEAV) priced below the range to raise $120 million at a $1.7 billion market cap. Weave provides a customer communication and engagement software platform to SMBs in healthcare. Fast growing and unprofitable, the company served more than 21,000 locations as of 6/30/21, though it is unproven in non-health verticals. Weave finished down 23%.

    Micro-cap Society Pass (SOPA) priced at the midpoint to raise $26 million at a $188 million market cap. Society Pass acquires and operates e-commerce platforms through its subsidiaries. It currently markets to both consumers and merchants in Vietnam, and intends to expand to the rest of SEA and South Asia post-IPO. After soaring more than 400% on its first day, Society Pass finished up 384%.

    OTC-listed Blackboxstocks (BLBX) raised $12 million at a $60 million market cap. Blackboxstocks’ platform offers real-time proprietary analytics and news for stock and options traders of all levels. The company employs a subscription based SaaS business model and maintains a growing base of users that currently spans 42 countries. Blackboxstocks finished down 17%.

    13 SPACs went public led by entertainment-focused Ascendant Digital Acquisition III (ACDI.U) and blockchain tech-focused Blockchain Coinvest Acquisition I (BCSAU), both of which raised $261 million.

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