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.
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.
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 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.
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.
Source: Renaissance Capital
From The TradersCommunity News Desk