Challenging conditions in the IPO market continued this past week, with only one of the week’s two major deals getting done. Leading PE firmTPG(TPG) completed its $1 billion IPO, joined by a Nasdaq uplisting and nine SPACs, while outsourced HR platform Justworks(JW) postponed. The pipeline continued to see some activity, with seven IPOs and five SPACs submitting initial filings.
TPG(TPG) priced at the midpoint to raise $1.0 billion at a $9.3 billion market cap. Mostly focused on private equity, this alternative asset manager had $109 billion in AUM across five investing platforms as of 9/30/21. The firm has demonstrated an ability to diversify into areas like ESG and real estate, and its capital and growth platforms have delivered 20%+ IRRs since inception. It is highly exposed to market movements, particularly in equities. TPG finished up 11%.
Nasdaq uplisting Cerberus Cyber Sentinel(CISO) raised $10 million at a $631 million market cap. The company provides a full range of cybersecurity consulting and related services, encompassing all pillars of cybersecurity, compliance, and culture. The company is unprofitable but has delivered explosive growth. Cerberus Cyber Sentinel finished up 8%.
Nine SPACs went public led by The Gores Group’s Gores Holdings IX(GHIXU), which raised $525 million.
Seven IPOs submitted initial filings. Leading eyecare company Bausch + Lomb(BLCO) filed for an estimated $3 billion dual listing in the US and Canada. Car sharing platform Turo(TURO) filed for an estimated $300 million IPO. Renewable energy companies DESRI(DESR) and REV Renewables(RVR), software provider Basis Global Technologies(BASI), and cell therapy biotechArcellx(ACLX) all filed to raise $100 million. Digital media firm The Arena Group(AREN) filed to raise $30 million.
Five SPACs submitted initial filings led by healthcare technology-focused First Digital Health Acquisition(FDHAU), which filed to raise $175 million.