The IPO market was back in the spotlight this past week, as Arm (ARM) revived the calendar with its highly-anticipated deal.
UK-based chip designer Arm dominated the week’s headlines, announcing terms for its blockbuster IPO on Tuesday. Planning to raise $4.7 billion, Arm would be one of the largest tech IPOs of the past two decades, and it is slated to replace Kenvue (KVUE) as the largest IPO of 2023.
Two small issuers began trading this past week. Hong Kong-based brokerage Solowin Holdings (SWIN) downsized and priced at the low end to raise $8 million at a $56 million market cap. Serving mostly Chinese investors in Asia, the company provides securities-related, investment advisory, corporate finance, and asset management services. Solowin finished up 23%.
Podcast producer Courtside Group (PODC), which does business as PodcastOne, completed its direct listing on the Nasdaq. Shares opened for trading at $4.30, well below the anticipated $8 per share minimum; from the opening price, Courtside Group finished up 2%.
| 2 IPOs During the Week of September 4th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/08 |
| Solowin (SWIN) | $8M | $56M | -20% | +52% | +23% |
| Hong Kong-based online brokerage and investment advisory firm. | |||||
| Courtside Group (PODC) | $0M | $183M | 0% | -45% | -45% |
| Podcast producer and publisher being spun out of LiveOne. | |||||
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The week’s only notable filing came from homebuilder Smith Douglas Homes (SDHC), which filed to raise $100 million.
| 3 Filings During the Week of September 4th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Zhibao Technology (ZBAO) | $9M | Financials | EF Hutton |
| Digital insurance brokerage in China. | |||
| Youxin Technology (YAAS) | $8M | Technology | Univest Sec. |
| Chinese provider of digital transformation software and services for retailers. | |||
| Smith Douglas Homes (SDHC) | $100M | Real Estate | JP Morgan |
| Homebuilder in the southeastern US focused on single-family homes. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/7/2023, the Renaissance IPO Index was up 32.1% year-to-date, while the S&P 500 was up 17.3%. 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 15.3% year-to-date, while the ACWX was up 7.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
