The end of the first quarter is on the horizon, and the IPO calendar is starting to heat up, with the week ahead set to be led by the year’s first large tech IPOs.
Social media platform Reddit (RDDT) plans to raise $715 million at a $6.1 billion market cap. The platform has over 100k+ active interest-based “subreddits,” serving 76 million daily users. Reddit has delivered solid growth and shown potential for significant economies of scale. The company is still unprofitable, though, and average revenue per user declined in the most recent quarter.
Chipmaker Astera Labs (ALAB) plans to raise $507 million at a $5.0 billion market cap. Astera offers its Intelligent Connectivity Platform, which comprises semiconductor-based connectivity products and its software suite. Its products are built specifically for data center and AI infrastructure, positioning it well to benefit from future buildouts. The company has delivered strong growth, though its revenue is concentrated in its top three customers.
Peruvian healthcare company Auna (AUNA) plans to raise $420 million at a $1.0 billion market cap. Originally founded as a healthcare coverage provider, Auna now also operates 15 hospitals and 16 other facilities across Mexico, Peru, and Colombia. The company has successfully expanded its footprint, and its underpenetrated target markets allow room for continued growth. It will be highly leveraged post-IPO.
Hong Kong-based financial PR firm Intelligent Group (INTJ) plans to raise $9 million at a $60 million market cap. The firm provides services to clients during mergers and acquisitions, IPOs, and restructurings on a variety of complex business. Intelligent Group is small and saw revenue decline in the FY22.
Holdover CDT Environmental Technology Investment Holdings (CDTG) plans to raise $9 million at a $50 million market cap. The China-based company provides and operates sewage treatment systems, and it also provides sewage treatment services.
While not included below, holdover RanMarine Technology (RAN) plans to raise $8 million in a unit offering at a $61 million market cap. The Dutch company designs, manufactures, and sells aquatic drones focused on harvesting harmful plastic pollutants, algae, biomass, and oils from water, and collecting water quality data.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Intelligent Group (INTJ) Hong Kong, China | $9M $60M | $4 - $5 2,000,000 | WestPark Capital |
| Provides financial public relations consulting in Hong Kong. | |||
| Astera Labs (ALAB) Santa Clara, CA | $507M $4,951M | $27 - $30 17,800,000 | Morgan Stanley JP Morgan |
| Designs advanced chip-based connectivity products used in data centers. | |||
| Reddit (RDDT) San Francisco, CA | $715M $6,066M | $31 - $34 22,000,000 | Morgan Stanley Goldman |
| Social media platform with message boards for interest-based communities. | |||
| Auna (AUNA) Lima, Peru | $420M $1,035M | $13 - $15 30,000,000 | Morgan Stanley JP Morgan |
| Provides healthcare plans and operates hospitals in Peru, Colombia, and Mexico. | |||
| CDT Environmental (CDTG) Shenzhen, China | $9M $50M | $4 - $5 2,000,000 | WestPark Capital |
| Provides sewage treatment systems and services in China. | |||
Street research is expected for one company in the week ahead, and lock-up periods will be expiring for two companies. For access to Street research and lock-up expiration dates, sign up for a free trial of IPO Pro.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/14/2024, the Renaissance IPO Index was up 5.9% year-to-date, while the S&P 500 was up 8.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Coinbase Global (COIN) and Kenvue (KVUE). The Renaissance International IPO Index was down 1.2% year-to-date, while the ACWX was up 4.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
