IPO/SPAC Announcements Get a Boost from Paytm and Presto

IPOs and SPAC announcements in the banking sector this year to date have totaled 61, followed by firms that are engaged in transforming the way companies’ workflows operate (the “work”) segment, at 48.  The activity was decidedly international in scope.  Payments firms follow, with 36 listings.

Paytm dominated listings activity in terms of sheer size, where as noted in this space, subscriptions to the company’s $2.5 billion share offering moved at a tepid pace.

Paytm went public on Monday (Nov. 8) in India’s biggest-ever IPO, backed by firms such as SoftBank, Ant Group and Berkshire Hathaway.

Read Also: Paytm, India’s Largest IPO, Sees Slow Subscriptions

Against that backdrop, Paytm reported a 10% decrease in revenue for the 12-month period ending in March 2021, following increased competition from Flipkart and Amazon.

CI&T, a Brazilian provider of outsourced IT development services, went public this past week, pricing more than 13 million shares at $15; the stock traded up 50% on its first day, and changed hands at a recent $22.

The company’s F-1 filing with the Securities and Exchange Commission notes that “the rapid expansion of technology, driven by the ubiquity of mobile applications and other connected devices, has increased the prevalence of connected consumers. Empowered by these technologies, consumers are more sophisticated than ever and are increasingly demanding seamless digital experiences. Meanwhile, companies across industries with new, tech-centric business models that embrace these trends challenge traditional enterprises. To meet rising consumer expectations,” continued the filing, “enterprises must invest in their continued digital transformations.”  And as measured in Brazilian reais, the company said that through the six months that ended in June, the company grew sales to 611 million reais in 2021 vs. 448 million in the year ago period.

Bitcoin miners continue to have their day in the sun, internationally.  Australian Bitcoin miner Iris Energy sets terms for its $215 million U.S. IPO.  Per SEC documents, the company has detailed that bitcoin mining-related revenues surged to 10.4 million AUD in the year that ended in June 2021, vs. 3.2 million in 2020.

In SPAC related activity, DP Cap Acquisition I priced its $200 million IPO this week. The company said in its prospectus that it is focused on consumer technology and related sectors.

Separately, Presto, which operates in the restaurant technology sector, will have a valuation of about $1 billion when it goes public through special purpose acquisition company (SPAC) Ventoux CCM Acquisition Corp., as reported this week.

Read Also: SPAC Presto Completes $1B SPAC Merger to Go Public

In its investor materials tied to the announcement, the company said that addressable markets are significant, where domestic restaurant enterprise tech spend is $9 billion, and international comparable spend is $16 billion.  Companies spend $79 billion on domestic labor costs in the restaurant sector – part of a total addressable market of $205 billion.  The company projects that its revenue growth by 2023 calendar year will top 100%, at $113 million (and up from the calendar year $26.1 million).  Modulated, targeted and mobile solutions enable restaurants to eliminate 65% of POS sale trips, facilitate more tables per server, and boosts check size by 18%.