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 IPOs by month.
Recent IPOs: January
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 Pop: 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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