Five IPOs raised a combined $5.4 billion this past week, led by the blockbuster IPO of Arm (ARM). Three issuers submitted initial filings.
The largest IPO of 2023 so far, Arm priced at the top of the range to raise $4.9 billion at a $52.9 billion market cap. Arm is an industry leader in central processing units (CPUs), stating that its energy-efficient CPUs are in over 99% of the world's smartphones in 2022, and estimating that approximately 70% of the world's population uses Arm-based products. The company saw revenue decline in its most recent fiscal year, largely due to issues in China, which it expects to continue in the near term. Arm traded up 25% in its debut, and finished the week up 19%.
Radiopharmaceutical biotech RayzeBio (RYZB) priced its upsized IPO at the top of the range to raise $311 million at a $1.1 billion market cap. RayzeBio's lead candidate is designed to deliver a highly potent alpha particle radioisotope to tumors overexpressing somatostatin receptor type 2. The company is enrolling a registrational Phase 3 trial for the treatment of gasteroenteropancreatic neuroendocrine tumors. RayzeBio finished the week up 33%.
Neuropsych biotech Neumora Therapeutics (NMRA) priced at the midpoint to raise $250 million at a $2.8 billion market cap. The company's lead candidate is a novel once-daily oral kappa opioid receptor antagonist that is being developed for the treatment of major depressive disorder. Neumora is initiating a pivotal Phase 3 program, and expects topline results in the 2H24. It finished the week down 4%.
Singaporean robotic cleaning equipment provider SIMPPLE (SPPL) priced its downsized IPO at the low end to raise $8 million at an $84 million market cap. SIMPPLE provides autonomous robotic cleaning equipment and relating software in Singapore, and has been adopted in schools, hospitals, and universities in the country. It finished the week down 7%.
Macau-based forestry company Nature Wood Group (NWGL) priced its downsized IPO at the low end to raise $7 million at a $148 million market cap. The company is a vertically-integrated forestry companies with facilities in Peru, and produces a range of products such as logs, decking, flooring, and sawn timber. Nature Wood Group finished the week down 4%.
| 5 IPOs During the Week of September 11th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/15 |
| RayzeBio (RYZB) | $311M | $1,112M | 6% | +33% | +33% |
| Phase 3 biotech developing radiopharmaceutical therapies for cancer. | |||||
| Arm (ARM) | $4,871M | $52,914M | 4% | +25% | +19% |
| UK-based chip designer for smartphones and other markets. | |||||
| Nature Wood Group (NWGL) | $7M | $148M | -10% | +7% | -4% |
| Macau-based forestry company with operations in Peru. | |||||
| Neumora Therapeutics (NMRA) | $250M | $2,760M | 0% | -4% | -4% |
| Phase 3 biotech developing therapies for neuropsychiatric indications. | |||||
| SIMPPLE (SPPL) | $8M | $84M | 17% | -7% | -7% |
| Provides industrial robotic cleaning equipment in Singapore. | |||||
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European shoemaker Birkenstock Holding (BIRK) led the week’s pipeline additions, filing to raise an estimated $750 million. Known for its luxury sandals, Birkenstock engineers and produces 100% of its products in the EU through vertically integrated manufacturing operations.
The remaining additions were small issuers. Hypogonadism-focused biotech Acesis Holdings (ACSB) filed to raise $7 million at an $81 million market cap, and Hong Kong-based hair styling products manufacturer Fenbo Holding (FEBO) filed to raise $5 million at a $55 million market cap.
| 3 Filings During the Week of September 11th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Acesis (ACSB) | $7M | Health Care | Boustead |
| Preclinical biotech developing non-hormonal oral therapies for low testosterone in men. | |||
| Birkenstock (BIRK) | $750M | Consumer Discretionary | Goldman |
| European shoemaker known for its luxury sandals. | |||
| Fenbo Holdings (FEBO) | $5M | Consumer Discretionary | EF Hutton |
| Hong Kong-based manufacturer of electrical hair styling products. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/14/2023, the Renaissance IPO Index was up 33.5% year-to-date, while the S&P 500 was up 18.7%. 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 15.4% year-to-date, while the ACWX was up 9.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
