Market Consensus: After a steep drop from 240 the IWM has found some stability in the last week or so here around 220. Analysts are beginning to raise their Q4 estimates for the S&P 500 stocks but they are still too low. Investors are pinned between “tax-loss selling” and the “Santa Claus rally.”
Last Week: Data center infrastructure provider HashiCorp (HCP) was the strongest deal last week – pricing above the range at $80 and trading up to $85. Investors are still willing to pay 56x sales for these kinds of stocks. We’re adding it to our SaaS stock performance sheet.
Nu Holdings (NU) received quite a bit of attention and did complete a $2.6B deal but it priced below the range at $9 and has since recovered to near $12. They are a major digital bank in Brazil. This one will be worth looking at again in January pre-coverage.
Chicago Atlantic Real Estate Finance (REFI) made it out at the low end of the range of $16 and is a small deal I’m interested in. It’s a potentially safe way to get exposure to growth in the cannabis markets since it’s a REIT. I think this deal could work out well in 2022 and am considering it for the tax-free RMP.
This Week: Samsara (IOT) is the big deal this week and I’ll be out tomorrow with a dedicated piece on that one.
There are some small deals too and they are shown in the current IPO sheet along with presentations added to the download page.
Pipeline: No new filings except for a bunch of small SPACs. I expect drafting will continue over the holidays and we’ll experience the usual surge in early January which will start the marketing and pricing process in mid-January.
New Street Coverage: As noted last week UserTesting (USER) is seeing a strong bid here with new coverage. This is another good example of how to mine short-term gains in any type of IPO market. The only name getting coverage before January is the nutty AeroClean (AERC) which is due out on Monday, December 20th.
Lockups Off: There are a ton of lockups coming off between now and YE. It calls for a separate sheet which we will publish this afternoon.