There were three pricings this past week, two of which are included in our IPO stats. One blank check IPO also debuted, and one issuer submitted an initial filing.
Pipeline and private company news from the past week provided more hints about fall IPO activity. There are some big names lining up potential listings next month, including chip designer Arm, luxury sandal maker Birkenstock, and most recently grocery delivery platform Instacart, which grabbed headlines on Thursday with reports that it’s planning a September offering. However, Fogo Hospitality (FOGO) won’t be among the fall IPO candidates; the Brazilian steakhouse, which had been on file for an IPO since 2021, was acquired by Bain Capital this past week for $1.1 billion.
Premium golf putter maker Sacks Parente Golf (SPGC) priced at the low end to raise $13 million at a $63 million market cap. The company popped over 600% in its debut, but gave up all of its gains in the aftermarket. Sacks Parente designs and sells golf putters, as well as shafts, grips, and head covers. Very small and highly unprofitable, the company opened a new manufacturing facility in Missouri in 2022, and intends to manufacture and assemble substantially all of its products in the US. Sacks Parente Golf finished the week down 37%.
ASX-listed payments platform Sezzle (SEZL) completed its Nasdaq direct listing on Thursday. It opened for trading at $22.65, significantly above the as-converted price of its shares on the ASX ($12.35), and soared from there; however, trading was halted due to inadequate volume. Sezzle provides a digital payments platform that allows merchants to offer their customers a flexible alternative to traditional credit. As of December 31, 2022, Sezzle's platform supported 42,000 Active Merchants and approximately 2.9 million Active Consumers.
While not included below, toy and souvenir maker SRM Entertainment (SRM) raised $6 million at a $47 million market cap. SRM Entertainment designs and develops toys and souvenirs for theme parks and entertainment venues, with a customer base including Walt Disney Parks and Resorts, Universal Studios, SeaWorld, and Six Flags. SRM was spun out of product developer Jupiter Wellness (Nasdaq: JUPW), which acquired the company in 2020. It finished the week down 58%.
The sole SPAC to price this week was 99 Acquisition Group (NNAGU), which raised $75 million to target the real estate sector.
| 3 IPOs During the Week of August 14th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 08/18 |
| Sezzle (SEZL) | $0M | $70M | 0% | +557% | +557% |
| Provides online merchants with an installment-based payment platform. | |||||
| 99 Acquisition Group (NNAGU) | $75M | $101M | 0% | +2% | +2% |
| Blank check company targeting the real estate sector. | |||||
| Sacks Parente Golf (SPGC) | $13M | $63M | -11% | +624% | -37% |
| Designs and manufactures premium golf putters. | |||||
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The sole issuer to submit initial filings this past week was commercial-stage Taiwanese biotech Jyong Biotech (JYB), which filed to raise $40 million. Its lead candidate is being developed to target benign prostate hyperplasia/lower urinary tract symptoms.
| 1 Filing During the Week of August 14th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Jyong Biotech (JYB) | $40M | Health Care | Joseph Stone |
| Commercial-stage Taiwanese biotech developing therapies for urinary diseases. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/17/2023, the Renaissance IPO Index was up 25.8% year-to-date, while the S&P 500 was up 15.0%. 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 12.7% year-to-date, while the ACWX was up 7.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
