One company went public this past week, completing the year’s first US IPO.
Georgia-based homebuilder Smith Douglas (SDHC) priced at the high end to raise $162 million at a $1.1 billion market cap. Operating in the Southeastern and Southern US, the company builds and sells single-family homes, catering to first-time home buyers and empty nesters. The company saw solid growth in home sales in 2022, though its business is fairly concentrated, particularly in Atlanta. Smith Douglas climbed 14% on its first day and finished the week there, after trading fairly flat on day two.
| 1 IPO During the Week of January 8th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/12 |
| Smith Douglas Homes (SDHC) | $162M | $1,087M | 8% | +14% | +14% |
| Homebuilder in the southeastern US focused on single-family homes. | |||||
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There were a few new filings this past week, led by Peruvian healthcare company Auna (AUNA), which filed to raise an estimated $200 million.
| 4 Filings During the Week of January 8th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Alto Neuroscience (ANRO) | $100M | Health Care | Jefferies |
| Phase 2 biotech developing biomarker-focused therapies for depression and schizophrenia. | |||
| Auna (AUNA) | $200M | Health Care | Morgan Stanley |
| Provides healthcare plans and operates hospitals in Peru, Colombia, and Mexico. | |||
| Zhengye Biotechnology (ZYBT) | $20M | Health Care | Tiger Brokers |
| Chinese provider of veterinary vaccines with a focus on livestock. | |||
| Love & Health (LLLLU) | $50M | SPAC | EF Hutton |
| Blank check company formed by Hong Kong-based financial services firm Waton Financial. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/11/2024, the Renaissance IPO Index was down 5.2% year-to-date, while the S&P 500 was up 0.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Coinbase Global (COIN). The Renaissance International IPO Index was down 6.0% year-to-date, while the ACWX was down 1.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Wise and Kuaishou.
