The December IPO market saw some activity this past week as two smaller issuers completed offerings, only one of which was large enough to include in our stats. One blank check company also priced, and the pipeline got one sizable addition.
China-based ZKH Group (ZKH) priced at the low end to raise $62 million at a $2.6 billion market cap. The company provides MRO (materials for maintenance, repair, and operations) procurement services through two platforms, ZKH platform and GBB platform. ZKH Group served over 64,000 customers in the 12 months ended 9/30/23, with product offerings spanning 17.2 million SKUs and all major MRO product lines. The company is unprofitable, and growth slowed in the 9mo23. Despite spending most of its first day below issue, ZKH Group finished flat.
Bayview Acquisition (BAYAU) raised $60 million in an upsized offering. The SPAC plans to target businesses in Asia with strong management teams and growth potential, among other characteristics.
While not included below, holding company SinglePoint (SING) uplisted to the BZX after raising $4 million at a $31 million market cap. It finished down 43%. Steel framing manufacturer INNO HOLDINGS (INHD) also began trading after raising $10 million the week prior. After soaring nearly 250% on day one, INNO finished the week down 47%.
| 2 IPOs During the Week of December 11th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 12/15 |
| Bayview Acquisition (BAYAU) | $60M | $78M | 0% | +1% | +1% |
| Blank check company targeting businesses in Asia. | |||||
| ZKH Group (ZKH) | $62M | $2,584M | -6% | +0% | +0% |
| Chinese B2B procurement platform for industrial supplies. | |||||
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A handful of IPOs submitted initial filings, led by diabetes and obesity-focused medical device developer Fractyl Health (GUTS), which filed to raise $100 million.
| 3 Filings During the Week of December 11th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Going International (GIT) | $20M | Technology | Prime Num. Cap. |
| Chinese provider of backtesting software for the financial industry. | |||
| Fractyl Health (GUTS) | $100M | Health Care | BofA |
| Developing a medical device and other therapies for type 2 diabetes and obesity. | |||
| E I L Holdings (EIL) | $10M | Technology | EF Hutton |
| Hong Kong-based supplier of sensors and electronic components. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/14/2023, the Renaissance IPO Index was up 48.4% year-to-date, while the S&P 500 was up 24.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Kenvue (KVUE). The Renaissance International IPO Index was down 18.0% year-to-date, while the ACWX was up 13.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
