U.S. IPO Weekly Recap: 2 Blank Check Companies In Short Holiday Week

Two SPACs entered the public market this past week, raising nearly $320 million. Three companies and one SPAC submitted initial filings.

dMY Technology (DMYT.U) raised $200 million at a market cap of $250 million. The blank check company, led by former Glu Mobile CEO Niccolo de Masi, is aiming to acquire a mobile app company in a consumer oriented segment such as gaming or dating.

East Stone Acquisition (ESSCU), a SPAC formed by Chinese private equity firm East Stone Capital, raised $120 million at a market cap of $149 million. The company is targeting the fintech sectors in North America and Asia.

2 IPOs During the Week of February 17th, 2020

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 02/21

East Stone Acquisition

$120M

$149M

0%

+0%

+0%

Blank check company formed by East Stone Capital to acquire a fintech business.

dMY Technology Group

$200M

$250M

0%

n/a

+0%

Blank check company targeting a consumer internet or mobile app business.

Online DTC insurance platform SelectQuote (SLQT) filed to raise up to $100 million on the NYSE, although the deal size is likely a placeholder and we estimate the deal could $250 million. Inari Medical (NARI), a medical device maker for the treatment of venous diseases, filed to raise $100 million on the Nasdaq and micro-cap video streaming platform FreeCast (FRCT) filed for a $17 million IPO on the Nasdaq. DFP Healthcare Acquisitions (DFPHU), a SPAC formed by Deerfield Management, filed to raise $200 million on the Nasdaq.

4 Filings During the Week of February 17th, 2020

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

DFP Healthcare Acq.

$200M

SPAC

Deutsche Bank

Blank check company formed by Deerfield Management targeting the healthcare industry.

Inari

$100M

Health Care

BofA

Medical device company for venous diseases.

SelectQuote

$250M

Financials

Credit Suisse

Provides an online DTC insurance platform.

FreeCast

$17M

Technology

Alexander Capital

Provides an integrated platform for video streaming services.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/20/20, the Renaissance IPO Index was up 12.8% year-to-date, while the S&P 500 had a gain of 4.7%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was up 5.5% year-to-date, while the ACWX was down 1.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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