Investment Opportunities

Top Recent IPOs: New Investment Opportunities

Knowing about recent IPOs is a great way to stay up to date on the IPO market. Initial public offerings can often provide great investment opportunities – but they don’t always. Below is a short list of some of the top recent IPOs by month.

Recent IPOs: March

In the top recent IPOs of March, Design Therapeutics had the best first day return.

Design Therapeutics (Nasdaq: DSGN)

Design Therapeutics is a biotech company. Its focus is small-molecule therapeutics called gene targeted chimeras (GeneTACs). GeneTACs target and modify the underlying causes of a disease. Design Therapeutics is currently pre-clinical stage. However, it plans to start clinical trials for its lead program by the first half of 2022.

The company doesn’t have any commercial products. Instead, Design Therapeutics’ revenue comes from grants. In 2019, grant revenue was $834,000. And in 2020, it decreased greatly to $226,000. The company’s net loss also took a hit. It went from $2 million in 2019 to $8.3 million in 2020. However, Design Therapeutics’ balance sheet shows cash and cash equivalents at $36.1 million for 2020. That’s up from $77,000 in 2019.

Design Therapeutics filed with the SEC on March 5, 2021. The company priced on March 25. The offering consisted of 12 million shares at a price of $20. This was the high end of the company’s range, raising $240 million. The Design Therapeutics IPO gave a market cap of $1.1 billion.

You can look at Design Therapeutics’ prospectus here.

First Day Return: 107.5%

Ikena Oncology (Nasdaq: IKNA)

Ikena Oncology develops cancer therapies. These therapies target signaling pathways that help drive cancer growth and spread. Additionally, these pathways currently have no treatments. By doing this, Ikena believes it can address a high volume of unmet needs. Since starting operations in 2016, the company has five programs in studies or clinical development. It plans to submit an Investigational New Drug application to the FDA in the second half of 2021.

The company doesn’t have products for sale. Instead, it funds operations through private investments, payments from a collaboration agreement and “related party revenue.” In 2019, this totaled $13.75 million. However, that same year, Ikena’s operating expenses were $18.5 million. The year ended with a net loss of $16.8 million. For 2020, revenue dropped to $9.2 million. And operation expenses increased to $44.5 million. This led to an increased net loss of $44.25 million in 2020.

Ikena filed with the SEC on March 5, 2021. It priced its shares at $16 on March 25. The deal offered 7.8 million shares for a deal size of $125 million. The IPO gave Ikena a market cap of $606 million.

You can look at Ikena’s prospectus here.

First Day Return: 100%

Edgewise Therapeutics (Nasdaq: EWTX)

Edgewise Therapeutics goal is to create the world’s leading precision medicine company for muscle disorders. It specializes in muscle biology and biophysics. Its platform uses systems to identify key proteins in muscle tissue. This lets Edgewise create therapies designed to target specific muscles. The company’s leading product is in a Phase 1 clinical trial.

Edgewise doesn’t have revenue. It lists that as one of the top risk factors in its prospectus. So, it’s not surprising Edgewise has increasing net loss. In 2019, operating expenses were $9.9 million. And net loss was $9.7 million after interest income. For 2020, operating expenses increased to $17.2 million for a total net loss of about $17.1 million. However, Edgewise also had a 343% increase in cash and cash equivalents on its balance sheet. It went from $23.7 million in 2019 to $104.9 million in 2020.

The company filed on March 5, 2021 and priced on March 25. Edgewise offered 11 million shares at a price of $16 a share, raising $176 million. The IPO gave Edgewise a market cap of $876 million.

You can look at Edgewise Therapeutics’ prospectus here.

First Day Return: 87.5%

Olink Holding (Nasdaq: OLK)

Olink Holding is a biotech company. It focuses on proteomics. According to News Medical

Proteomics is used to detect protein expression patterns at a given time in response to a specific stimulus, but also to determine functional protein networks that exist at the level of the cell, tissue, or whole organism.

By using proteomics, Olink hopes to provide a platform of products and services to leading biopharmaceutical companies as well as clinical and academic organizations. The company has ten owned subsidiaries across the globe.

During 2019, Olink made an acquisition. As a result, the company provided predecessor, successor and pro forma financial data for the year. We will look at the pro forma data. Olink recorded revenue of $46.3 million in 2019. It had a gross profit of $32 million, but it ended with a net loss of almost $5 million. In 2020, revenue increased 16.8% to %54.1 million. Gross profit also increased to $36.6 million. However, Olink’s net loss also grew, ending 2020 with a $6.8 million loss.

Olink filed to go public on March 3, 2021. It priced on March 24. The company offered 17.65 million shares at a price of $20. The deal raised $353 million for a market cap of nearly $2.4 billion.

You can look at Olink Holding’s prospectus here.

First Day Return: 80%

Sun Country Airlines (Nasdaq: SNCY)

Sun Country Airlines is an American airline. The company describes itself as “a new breed of hybrid low-cost air carrier.” Based in Minnesota, the company focuses on leisure travel, such as friends and family visiting each other. It offers flights through the U.S. and to Mexico, Central America and the Caribbean.

As a result of the coronavirus pandemic, companies like Sun Country were hit hard in 2020. And it shows in the finances. For 2019, revenue was $688.8 million. But in 2020, it was cut almost in half to $359.2 million. Sun Country ended 2019 with a net profit of $46 million. In 2020, it ended with a net loss of $3.9 million. However, investors are hopeful that vaccines and quarantine lifts will result in a large demand for travel in 2021 and 2022.

Sun Country filed on February 8, 2021. It priced over a month later on March 16. The company offered shares at a price of $24, above the original range of $21 to $23. The deal included almost 9.1 million shares for a deal size of $218 million. The IPO gave Sun Country a market cap of $1.5 billion.

You can look at Sun Country Airlines’ prospectus here.

First Day Return: 51.6%

Recent IPOs: February

The recent IPO of Chinese communications software provider Cloopen Holdings was the top offering of February 2021.

Cloopen Group Holding (NYSE: RAAS)

Cloopen is a Chinese cloud-based communications provider. In 2019, it was the largest multi-capable solution provider in China by revenue. Cloopen offers a full suite of products, such as communications platform as a service, cloud-based contact centers, and cloud-based communications and collaborations. The company works across a number of industries, from telecommunications and finance to education and energy.

In 2018, Cloopen recorded $77.5 million in revenue with a gross profit of $29.1 million. The next year, the company’s revenue increased 30% to $100.5 million. Gross profit also increased to $41.3 million, a growth of 42%. For the nine months ended September 2020, Cloopen reported increased revenue, going from $65.9 million in 2019 to $78.7 million. That’s a growth of 19.4%. Gross profit also increased. It grew 14.7%, from $27.2 in 2019 to $31.2 million in 2020. However, Cloopen isn’t yet profitable. In 2018, net loss was $24 million. It increased to a loss of $28.4 million in 2019. And for the nine months ended September 2020, net loss was $31.5 million. That’s greater than Cloopen’s net loss of $20 million for the same time period in 2019.***

Cloopen filed on January 21, 2021. The offering was priced at $16 on February 8, 2021. The company offered 20 million shares, for a deal size of $320 million. This gave Cloopen a market cap of $2.35 billion.

You can look at Cloopen Group Holdings’ prospectus here.

First Day Return: 200%

***Financial data calculated according to the RMB to USD conversion rate on March 4, 2021.

Vor Biopharma (Nasdaq: VOR)

Vor is a biotech company. It focuses on developing therapies for hematological (blood) cancers. The company uses cell technology. It claims traditional treatments aren’t effective against tumor targets on healthy cells. As a result, 40% of patients relapse, with less than 20% survival rates for two years. Vor aims to create a single therapy to remove tumor cells from healthy cells.

Vor has no revenue or income. It’s the first thing the company lists as a risk factor:

Since inception, we have not generated any revenue and have incurred significant operating losses. For the years ended December 31, 2018 and 2019, our net loss was $4.2 million and $10.8 million, respectively. Our net loss for the nine months ended September 30, 2020 was $27.7 million. As of September 30, 2020, we had an accumulated deficit of $45.6 million. We have financed our operations primarily through private placements of our preferred stock. We have devoted all of our efforts to organizing and staffing our company, business and scientific planning, raising capital, acquiring and developing technology, identifying potential product candidates, undertaking research and preclinical studies of potential product candidates, developing manufacturing capabilities and evaluating a clinical path for our pipeline programs. We expect to continue to incur significant expenses and increasing operating losses for the foreseeable future.

Vor Biopharma filed to go public on January 15, 2021. The company priced almost 10 million shares on February 4, 2021 at $18 per share. The deal raised about $177 million. This gave Vor a market cap of $711 million.

You can look at Vor Biopharma’s prospectus here.

First Day Return: 108.3%

Viant Technology (Nasdaq: DSP)

Viant is an advertising software company. Its main offering is its demand-side platform, Adelphic. According to Viant, its software allows users to plan, buy and measure advertising campaigns. Additionally, the self-service platform offers advanced forecasting and reporting. It also allows users to buy ads on desktop, mobile, TV and digital billboards, to name a few.

Although the company started in 1999, Viant was reorganizing, giving little financial data. The company offers 2019 numbers and 2020 estimates for the year since bookkeeping wasn’t finished at the time of the prospectus. For the year ended 2019, Viant recorded $164.9 million in revenue. It estimates $163 to $165 million for revenue in 2020. In 2019, net income was $9.9 million. Viant estimates a growth of 107% for a projection of $20 to $21 million in net income for 2020.

Viant filed on January 15, 2021. It priced on February 9, 2021. The company offered 10 million shares at $25 per share. Viant raised $250 million for a market cap of $1.6 billion.

You can look at Viant Technology’s prospectus here.

First Day Return: 90.9%

Baosheng Media Group Holdings (Nasdaq: BAOS)

Baosheng is a Chinese online marketing service provider for advertisers and media companies. The company advises on online marketing strategies, offers advertising optimization services and helps deploy online ads. It also helps online media companies get advertisers to buy ad space across multiple channels.

In 2018, Baosheng reported revenue of $16.2 million. It grew almost 10% to $17.85 million in 2019. For the six months ended June 30, 2020, Baosheng recorded $9.8 million in revenue. That’s a decrease in revenue from the same time period in 2019 when revenue was close to $11 million. The company is profitable, however. In 2018, net income was $9.2 million. It grew to $11.2 million in 2019 for a growth rate of 21.7%. And for the six months in 2020, net income fell to $6.2 million from $6.8 million the year before.

Baosheng Media filed on July 10, 2020. It priced seven months later on February 8, 2021. The company sold 6 million shares at an offer price of $5. The deal size was $30 million for a market cap of $132 million.

You can look at Baosheng Media Group Holdings’ prospectus here.

First Day Return: 77.2%

Talis Biomedical (Nasdaq: TLIS)

Talis Biomedical develops diagnostic tests for infectious diseases. It aims to commercialize products for accurate, reliable, lost cost and rapid molecular testing. The company is developing the Talis One platform. It’s a cloud-enabled sample-to-answer platform to diagnose at point-of-care. Talis believes that more accurate testing at the point-of-care leads to better and effective treatment and care. The company is also making a COVID-19 test with the hope it will receive an Emergency Use Authorization from the FDA.

Since Talis doesn’t have any products currently available, the company doesn’t have revenue from sales. Instead, the company lists grant revenue on its financial statements. In 2018, Talis received $2.4 million in grant revenue. It increased to nearly $4 million in 2019. For the nine months ended September 30, 2020, Talis had $10.7 million in grant revenue. This is a big increase from 2019, when it was $2.5 million. Additionally, the company notes it has recurring losses, citing $21.3 million and $27.5 million for 2018 and 2019, respectively. As of September 30, 2020 Talis had an accumulated deficit of $128.7 million.

Talis filed with the SEC on January 22, 2021. It priced on February 11, 2021 at $16 a share. The deal offered 13.8 million shares for a deal size of $221 million. The IPO gave Talis a market cap of $948 million.

You can look at Talis Biomedical’s prospectus here.

First Day Return: 73.8%

Recent IPOs: January

The RLX Technologies IPO was the top recent IPO for January 2021.

RLX Technologies (NYSE: RLX)

RLX Technologies is a Chinese e-vapor company. It claims it was the No. 1 brand in terms of retail sales in 2019, taking 48% of the market share of closed-system e-vapor products. And it was ranked first for brand awareness in a survey conducted by China Insights Consultancy in September 2020. Among users of e-vapor products in China, 67.6% recognized the brand.

RLX’s finances show increasing revenue numbers. In 2018, the company recorded about $20.5 million in revenue. Then RLX saw a huge jump in 2019, with $239.8 million in revenue. That’s an increase of more than 1,000%. For the nine months ended September 30, 2019, RLX reported revenue of $176.3 million. And for the same time period in 2020, net revenue was $340.7 million, a growth rate of 93.3%. Additionally, RLX recorded profit for the year ended 2019 and the nine months ended September 30, 2020. Net income was $7.4 million and $16.8 million, respectively.***

RLX filed to go public on December 31, 2020. The RLX IPO date was January 21, 2021. The company offered 116.5 million shares at an offer price of $12 a share. The deal raised nearly $1.4 billion for a market cap of $18.6 billion.

You can look at RLX Technologies’ prospectus here.

First Day Return: 145.9%

***Financial data calculated according to the RMB to USD conversion rate on February 3, 2021.

Poshmark (Nasdaq: POSH)

Poshmark is an e-commerce website. It was founded in 2011 to make buying and selling “simple, social and fun,” according to the company’s preliminary prospectus. In 2019, the company’s active users spent 27 minutes a day on average browsing Poshmark’s market. The company’s categories include apparel, accessories, footwear, home and beauty. Poshmark claims its technology “enables simple transactions, seamless logistics and an engaging experience at scale.” The company had 31.7 million active users, 6.2 million active buyers and 4.5 million active sellers as of September 30, 2020.

Poshmark’s revenue comes from fees charged to marketplace sellers. In 2018, Poshmark recorded $148.3 million in revenue. That increased to $205.2 million in 2019. a growth rate of 38.4%. For the nine months ended September 30, 2019, Poshmark had $150.5 million in revenue. That increased 28.1% to $192.8 million for the same time period in 2020. However, Poshmark isn’t yet profitable. In 2018, net loss was $14.5 million. And in 2019, that grew to $48.7 million. For the nine months ended September 30, 2020, net loss was $20.9 million.

The company filed to go public on December 17, 2020. The Poshmark IPO date was January 13, 2021. Shares were priced at $42. The offering sold 6.6 million shares, for a deal size of $277 million. Poshmark’s post-IPO market cap is almost $3.5 billion.

You can look at Poshmark’s prospectus here.

First Day Return: 141.7%

Qilian International Holding (Nasdaq: QLI)

Qilian is a Chinese pharmaceutical and chemical company. It develops, manufactures, markets and sells its products. Its offerings include licorice products, oxytetracycline products, traditional Chinese medicine and fertilizers.

In 2018, Qilian reported $50.4 million in revenue. In 2019, revenue fell 9.3% to $46.1 million. On March 31, 2019, Qilian had $27.2 million in revenue. For the same time period in 2020, Qilian recorded an increase of 2.2%, reaching $27.8 million in revenue. And Qilian is a profitable company. In addition to recording gross profit, Qilian has net income. In 2018, net income was $5.2 million. That grew 13.5% to $5.9 million in 2019. For the six months ended March 31, 2019, net income totaled $$5 million. That fell to $4.2 million for the six months ended March 31, 2020.

Qilian International filed on November 11, 2019, taking more than a year to complete the IPO process. The Qilian IPO date was January 11, 2021. It offered 5 million shares. The offering was priced at $5 a share, for a total deal size of $25 million. Qilian’s post-IPO market cap is $175 million.

You can look at Qilian International Holding’s prospectus here.

First Day Return: 100%

Affirm (Nasdaq: AFRM)

PayPal co-founder Max Levchin founded Affirm with Nathan Gettings, Jeffrey Kaditz and Alex Rampell in 2012. Affirm is a technology company. It provides e-commerce solutions. It allows consumers to make purchases in interest-free installments. Additionally, Affirm has an app to help people manage payments or open high-yield savings accounts.

On the one hand, the company has revenue growth. In 2019, net revenue was $264.4 million. For the year ending June 30, 2020, revenue grew 92.7% to $509.5 million. And the trend continued for the three months ending September 30. In 2019, revenue was $87.9 million for this time period. But in 2020, that increased to $174 million, a growth rate of 98%. On the other hand, Affirm isn’t yet profitable. Affirm had a net loss of $120.5 million in 2019. However, the company decreased its net loss to $112.6 million in 2020. And for the three months ended September 30, net loss decreased from $30.8 million in 2019 to $15.3 million in 2020.

Affirm filed on November 18, 2020. The Affirm IPO date was January 12, 2021. It offered 24.6 million shares at $49 a share, up from its original price range of $41 to $44. The total deal size was $1.2 billion, giving Affirm a market cap of almost $14.8 billion.

You can look at Affirm’s prospectus here.

First Day Return: 98.4%

Motorsport Games (Nasdaq: MSGM)

Motorsport Games is a racing game developer, publisher and esports system provider. The company works on games for sports such NASCAR, plus the 24 Hours of Le Mans endurance race and its associate, the FIA World Endurance Championship. Motorsport Games strives to deliver high-quality and innovative experiences for racers, gamers and fans of all age groups. It is the official developer and publisher of the NASCAR video game racing franchise. NASCAR reached about 475 million homes in 2019 and is only part of the company’s market.

In 2018, Motorsport reported $14.8 million in revenue. This dropped to $11.85 million in 2019. But for the nine months ended September 30, 2020, Motorsport had $16.1 million in revenue. This was a 67.7% increase from the same time period in 2019, when revenue was $9.6 million. However, Motorsport doesn’t have steady profitability yet. For the year ended December 31, 2018, Motorsport’s net loss was $2.6 million. That increased in 2019 to net loss of $3.6 million. And for the nine months ended September 2019, net loss was $2.9 million. However, for the first nine months of 2020, Motorsport recorded net income of more than $875,000.

Motorsport filed on December 18, 2020. The Motorsport Games IPO date was January 12, 2021. The company offered a total of 3 million shares. Priced at the high end of its expected range, shares sold for $20 apiece, for a deal size of $60 million. Motorsport Games market cap is $346 million.

You can look at Motorsport Games’ prospectus here.

First Day Return: 75%

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