A Big Week for the IPO Market
Mobile Gaming Company Raises $1.8 Billion
The IPO market had a busy week, with crypto exchange operator Coinbase (COIN) raising $86 billion. This record-setting listing wasn’t the only major public debut. Several other startups also joined the ranks of public companies, including AppLovin (APP).
AppLovin is a mobile games startup backed by the private equity firm KKR (KKR). It raised $1.8 billion yesterday in its IPO, giving it a market capitalization of $28.6 billion. AppLovin, which owns more than 200 titles, is capitalizing on the boom in demand for video games created by the pandemic. With people stuck at home, gaming became a popular way to pass time and socialize.
Autonomous Trucking Startup Raises $1 Billion
TuSimple (TSP), an autonomous truck maker, also went public this week, raising around $1 billion. The company is going after the long-haul trucking industry, which could be revolutionized by self-driving technology. The long-haul trucking market is attractive for autonomous vehicle makers due to the nature of trucking routes. Long-haul trucking relies on trucks driving on interstate highways for long stretches. It is easier to program vehicles to do this kind of driving than to make shorter, more complicated trips.
TuSimple priced its shares at $40 each, giving it a valuation of roughly $8.5 billion. The startup previously raised $850 million in funding and has facilities in China, California, and Arizona.
Alkami and Karat Packaging Make Public Debuts
Other important IPOs this week included Alkami Technology (ALKT) and Karat Packaging (KRT). Alkami Technology, a technology platform used by banks, raised $180 million in its offering and is now valued at $2.9 billion. The fast-growing cloud-based startup had previously raised $421 million in venture funding.
Meanwhile, Karat Packaging, a company making environmentally friendly disposable foodservice products, priced its IPO at $16 per share. Proceeds are being used to pay down $30 million in debt.
The IPO market is picking up steam across a variety of industries. Investors seem enthusiastic about backing startups, which is good news for several more startups getting ready to tap the public markets in the coming months.
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