Six IPOs priced this past week, joined by two blank check companies.
One larger deal did not get done: Fortegra (TFG) pulled its $297 million offering ahead of its expected pricing. The specialty insurer had previously attempted to go public in early 2021 but scrapped those plans ahead of pricing as well.
Autoimmune disease biotech Kyverna Therapeutics (KYTX) priced above the upwardly revised range to raise $319 million at a $971 million market cap. Its lead candidate is an autologous CD19 CAR T-cell therapy, whose underlying CAR was licensed from the NIH. Kyverna plans to conduct two trials of this candidate in patients with lupus nephritis, and has received IND clearance for a Phase 1/2 study in systemic sclerosis. It has also received IND clearance for Phase 2 studies in myasthenia gravis and multiple sclerosis. Kyverna led the week’s returns, finishing up 37%.
American Healthcare REIT (AHR) priced at the low end to raise $672 million at a $1.5 billion market cap. AHR owns a portfolio of 298 healthcare properties, mostly in the US, and focuses primarily on medical offices, senior housing, and other healthcare-related facilities. The REIT faces favorable tailwinds from an aging population and shift toward outpatient care, and it plans to pay a dividend. It is highly leveraged post-IPO. American Healthcare REIT finished up 9%.
Mexico-based BBB Foods (TBBB) priced at the high end of the upwardly revised range to raise $589 million at a $2.7 billion market cap. Operating under the name Tiendas 3B, the company is a leader in the grocery hard discount model in Mexico, with 2,288 stores at the end of 2023 and estimated white space for at least 12,000 additional stores. The company is leveraged, and high interest expense has resulted in a history of net losses. BBB Foods finished up 9%.
Perfect Moment (PMNT) offered more shares and priced at the low end to raise $6 million at a $94 million market cap. The company makes luxury ski outwear and accessories, swimwear, and activewear, which it sells both D2C and wholesale. It operates in a growing but highly seasonal industry. Perfect Moment finished down 14%.
Drug developer Telomir Pharmaceuticals (TELO) raised $7 million at a $215 million market cap. The company is focused on the development and commercialization of TELOMIR-1, a novel small molecule being developed to function as an oral in situ therapy for human stem cells. It plans to submit an IND for the treatment of hemochromatosis, an age-related inflammatory condition, in the 3Q24. Telomir finished down 29%.
Gene editing biotech Metagenomi (MGX) priced at the low end to raise $94 million at a $563 million market cap. The company is focused on developing therapies using its proprietary, comprehensive metagenomics-derived genome editing toolbox, which includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems. Target indications include liver, neuromuscular, and other organ areas, though all of its product candidates are preclinical. Metagenomi was the bottom performer, finishing down 31%.
| 8 IPOs During the Week of February 5th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/09 |
| Kyverna Therapeutics (KYTX) | $319M | $971M | 22% | +36% | +37% |
| Phase 1 biotech developing cell therapies for autoimmune diseases. | |||||
| American Healthcare REIT (AHR) | $672M | $1,524M | -11% | +10% | +9% |
| Healthcare REIT with 298 properties in the US and UK. | |||||
| BBB Foods (TBBB) | $589M | $2,683M | 13% | +9% | +9% |
| Operates more than 2,200 discount grocery stores in Mexico. | |||||
| Helix Acquisition II (HLXB) | $160M | $205M | 0% | +2% | +2% |
| Blank check company formed by Cormorant Asset Management targeting healthcare. | |||||
| Legato Merger III (LEGT.U) | $175M | $225M | 0% | +1% | +1% |
| Blank check company targeting the infrastructure, E&C, industrial and renewables industries. | |||||
| Perfect Moment (PMNT) | $8M | $94M | -8% | -13% | -14% |
| Luxury lifestyle brand focused on ski apparel and other activewear. | |||||
| Telomir Pharmaceuticals (TELO) | $7M | $215M | 0% | -29% | -29% |
| Preclinical developer of an oral small molecule therapy for hemochromatosis. | |||||
| Metagenomi (MGX) | $94M | $563M | -6% | -31% | -31% |
| Preclinical biotech using metagenomics-derived genome editing. | |||||
| 6 Filings During the Week of February 5th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Invizyne Technologies (IZTC) | $17M | Materials | Public Ventures |
| Developing a biomanufacturing platform for a diverse range of chemicals. | |||
| JBDI Holdings (JBDI) | $10M | Industrials | Spartan Capital |
| Singapore-based supplier of new and reconditioned steel and plastic drums. | |||
| Wellchange Holdings (WCT) | $9M | Technology | Pacific Century |
| Hong Kong-based provider of customized software solutions for SMBs. | |||
| QQJ (QQJ) | $9M | Technology | Network 1 |
| Chinese online shopping platform that connects suppliers, businesses, and consumers. | |||
| Black Hawk Acquisition (BKHAU) | $60M | SPAC | EF Hutton |
| Blank check company targeting businesses with growth potential and defensible market positions. | |||
| Veg House (VEG) | $5M | Technology | EF Hutton |
| Operates e-commerce platforms for plant-based consumer goods. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/8/2024, the Renaissance IPO Index was down 3.1% year-to-date, while the S&P 500 was up 4.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index was down 7.9% year-to-date, while the ACWX was down 1.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
