The New York Stock Exchange welcomes Clear Secure, Inc. (NYSE: YOU) executives and guests to celebrate its IPO on June 30, 2021.
On a day with more tech IPOs than available bell-ringing slots on US stock exchanges, investors reaped billions in profits.
But the winners went well beyond Silicon Valley’s venture capital network.
over and Tencent joined SoftBank as the largest stakeholder in the Chinese driver service Didi Chuxing, Which debuted on Wednesday on the New York Stock Exchange, closing with a market cap of $ 67.8 billion. Delta Airlines is one of the top investors in airport security providers clearwho rang the opening bell on the NYSE.
Among the venture firms, New York’s Insight Partners had the biggest day thanks to their $ 1.45 billion stake in a cybersecurity software company SentinelOne, while Highland Capital owns over $ 500 million in shares Xometry, a marketplace for production.
There is also a lot of money for private equity firms. Francisco Partners owns over a quarter of LegalZoom, which opened on Nasdaq Wednesday, and the ad tech company Integral advertising science is majority owned by Vista. The final bell of the Nasdaq rang integral.
During the IPOs of software companies last week Confluent and Doximacy primarily rewarded well-known venture names like Benchmark, Index Ventures and Emergence Capital, this series of deals underscores the thirst for technology across the investment universe. From buyouts and mutual fund managers to large publicly traded companies, capital has poured into the tech industry, which plays an outsized role in the wider economy.
Didi was by far its biggest debut on Wednesday after raising $ 4.4 billion on its IPO. Its largest investor is SoftBank, which, according to PitchBook, began buying stocks valued at $ 16.5 billion after receipt in 2015, according to PitchBook. At close of trading, the company raised $ 13.7 billion, primarily through its Vision Fund.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, the United States, on June 30, 2021 during the IPO of Chinese ride-hailing company Didi Global Inc.
Brendan McDermid | Reuters
Emil Michael, the former chief business officer of Uber, tweeted earlier this week that Uber’s windfall was all down to a $ 2 billion investment.
“Almost every stakeholder was against our large investment in China and ruthlessly negative,” Michael wrote in one of several tweets about the deal.
Chinese internet giant Tencent owns a $ 4.4 billion stake in Didi after investing in 2013. Apple and Alibaba also invested in later years, but they each own less than 5% of the company, so their stakes are not in the brochure.
Clear, whose biometric devices help passengers pass airport security lines, has a market cap of $ 5.9 billion after its stock rose 29% to $ 40 on its NYSE debut.
T. Rowe Prize is Clear’s largest outside investor with $ 763 million in the end, followed by venture firm General Atlantic with $ 596 million.
Delta’s stock is valued at $ 331 million on an investment tied in partnership between the two companies. At the airline’s hub in Atlanta, Delta uses facial recognition systems This allows passengers to board some international flights quickly without having to show a boarding pass or passport. In 2017, Clear began operations at New York’s John F. Kennedy and LaGuardia Airports and pays a revenue share to Delta instead of paying for the airport, according to the brochure.
“Our customers tell us that their time is valuable, as well as a consistent, enjoyable airport experience with reduced effort,” said Ed Bastian, Delta CEO, in one Press release at the time of the agreement in 2016. “We look forward to what this partnership brings to our customers.”
SentinelOne 21% increased on Wednesday after the company raised $ 1.2 billion on its initial public offering. Insight Partners, which is in the middle of a stroke of luck from the IPOs of the Israeli Montag.com and WalkMe, is the largest shareholder. Tiger Global, the investment firm best known for late-stage tech deals, holds a $ 1.1 billion stake.
Xometry, which offers technology for on-demand manufacturing, had the biggest pop among IPOs on Wednesday, nearly doubling from its offering price of $ 44 to $ 87.39.
The company closed the day with a market cap of $ 3.7 billion. Highland Capital, which operates in the Bay Area and Boston, initiated a $ 8.8 million investment at a valuation of $ 40 million in 2015. T. Rowe Price led the last private round last year with a valuation of about $ 550 million.
Randy Altschuler, CEO of Xometry, told CNBCs “The exchange” that going public was the best option for the company, even if there are more options for going public, such as being listed directly or through a special purpose vehicle or SPAC.
“We had a lot of enthusiasm on our debut today and we thought, hey, let’s build a book of long-term investors and build a great company,” he said.
Two private equity deals from 2018 also paid off well on Wednesday.
Francisco Partners nearly quadrupled its money in LegalZoom, less than three years after it was founded $ 300 million invested in a deal that valued the legal services side at $ 2 billion. After the stock rose 35% to $ 37.85 on Wednesday, LegalZoom’s market cap rose to $ 7.3 billion and Francisco’s stake hit $ 1.1 billion.
Vista’s return on investment for Integral Ad Science isn’t quite as dramatic in percentage terms, but the total in dollars is even higher. In June 2018, Vista bought the majority of the ad tech firm in a transaction valued at $ 835 million, according to PitchBook.
Integral ad shares rose 14% to $ 20.58, giving the company a market cap of $ 3.1 billion. Vista’s 70 percent stake is now worth over $ 1.94 billion.
CLOCK: Xometry CEO on his IPO debut