The IPO market’s tech unicorn drought ended this past week, with grocery deliver platform Instacart (CART) and marketing SaaS company Klaviyo (KVYO). Despite the fanfare leading up to their big debuts, reception was lackluster. Both issuers opened well above their IPO prices on the first day but fell from there, and trading was mixed through the rest of the week. However, both finished at or above offer.
Instacart priced at the high end of the upwardly revised range to raise $660 million at a $10.0 billion market cap. In June 2023, the company connected 7.7 million customers with 600,000 independent shoppers, and its retail partners include 1,400 banners representing over 80,000 stores. While it faces rising competition from DoorDash and others, the company was able to grow revenue by 31% in the 1H23, while achieving profitability. Instacart finished flat.
Klaviyo priced above the upwardly revised range to raise $576 million at a $9.2 billion market cap. The SaaS company provides a customer engagement platform, allowing for management of marketing messaging across multiple channels, though it currently depends on third parties for delivery of messages. Fast-growing with positive cash flow, the company serves over 130,000 customers, primarily in the retail vertical. Klaviyo finished up 11%.
Two small issuers also priced this past week, only one of which qualifies for inclusion in our IPO stats. A couple holdovers (GPAK, GMM) did not get done. Spanish energy storage equipment maker Turbo Energy (TURB) priced at the low end to raise $5 million at a $55 million market cap, and finished flat. While not included below, Singapore-based Davis Commodities (DTCK) priced at the low end to raise $4 million at a $97 million market cap; it finished up 26%.
| 3 IPOs During the Week of September 18th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/22 |
| Klaviyo (KVYO) | $576M | $9,218M | 15% | +9% | +11% |
| Provides a software platform that automates digital marketing campaigns. | |||||
| Turbo Energy (TURB) | $5M | $55M | -9% | +0% | +0% |
| Spanish provider of PV energy storage equipment being spun out of Umbrella Solar Investment. | |||||
| Instacart (CART) | $660M | $9,963M | 11% | +12% | +0% |
| Operates a grocery delivery platform. | |||||
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Just one IPO joined the pipeline, US oil and gas producer Mach Natural Resources LP (MNR), which filed to raise $100 million. Two SPACs also filed.
| 3 Filings During the Week of September 18th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Global Lights Acquisition (GLACU) | $60M | SPAC | Chardan |
| Blank check company targeting businesses focused on sustainability. | |||
| Mach Natural Resources (MNR) | $100M | Energy | Stifel |
| US oil and gas production company in the Anadarko Basin. | |||
| Hainan Sirius Acquisition (HSACU) | $60M | SPAC | Ladenburg |
| Blank check company targeting businesses in high growth industries. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/21/2023, the Renaissance IPO Index was up 24.3% year-to-date, while the S&P 500 was up 14.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Airbnb (ABNB). The Renaissance International IPO Index was down 18.2% year-to-date, while the ACWX was up 7.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
