Three small issuers began trading this past week, two of which were eligible for inclusion in our IPO stats.
Australia-based Fitell (FTEL) priced at the low end to raise $15 million at a $56 million market cap. The fitness retailer sells branded equipment including weights, bars, power racks, benches, and gym machines. It plans to launch smart equipment and virtual fitness offerings in 2023. Fitell is small and competes with much larger players in the fitness market. Fitell finished down 50%.
LQR House (LQR) priced at the midpoint to raise $5 million at a $56 million market cap. Small and highly unprofitable, the company provides digital marketing and brand development to the alcoholic beverage space. LQR has also developed premium limited batch spirit brands and established a wine club, but does not sell or distribute any alcoholic products. LQR finished down 40%.
While not included below, medical device maker NeurAxis (NRXS) raised $7 million at a $43 million market cap. The company’s first product, IB-Stim, is intended for patients 11-18 years of age with functional abdominal pain associated with IBS. NeurAxis finished up 3%.
| 2 IPOs During the Week of August 7th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 08/11 |
| LQR House (LQR) | $5M | $56M | 0% | -22% | -40% |
| Provides digital marketing and branding services to the alcohol industry. | |||||
| Fitell (FTEL) | $15M | $56M | 0% | +1% | -50% |
| Online retailer of gym and fitness equipment in Australia. | |||||
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| 2 Filings During the Week of August 7th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| VS Media (VSME) | $10M | Communication Services | Univest Sec. |
| Hong Kong-based provider of content creator-driven marketing services. | |||
| Jinxin Technology (JXNT.RC) | $5M | Technology | EF Hutton |
| Provides a digital textbook and educational content platform for K-9 students in China. | |||
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While most IPOs are biding their time through the August break, the SPAC market is churning out deals. The big news from this past week, Black Spade Acquisition (BSAQ) shareholders approved its merger with Vietnamese EV maker VinFast. The deal values VinFast at a whopping $27 billion, making it one of the largest SPAC mergers of all time. Aurora Acquisition (AURC) shareholders also approved the company’s proposed merger with mortgage lender Better. The deal, which values Better at $8 billion, was originally announced in mid-2021.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/10/2023, the Renaissance IPO Index was up 33.2% year-to-date, while the S&P 500 was up 17.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 7.8% year-to-date, while the ACWX was up 11.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
