Three IPOs priced in the first week of April, led by a sizable biotech. The calendar should see more activity coming up, thanks to some large launches and notable new filings.
Neuro and inflammation biotech Contineum Therapeutics (CTNM) priced a downsized share offering at the low end to raise $110 million at a $429 million market cap. The company's lead asset is in development for idiopathic pulmonary fibrosis and progressive multiple sclerosis, and has completed Phase 1 trials in both indications. Contineum is collaborating with Johnson & Johnson on its second candidate, which has entered a Phase 2 trial in relapse remitting MS. Contineum finished down 4%.
Two small issuers also began trading this past week. Powersport vehicle maker Massimo Group (MAMO) priced at the midpoint to raise $6 million at a $186 million market cap. It finished down 13%. Chinese digital insurance brokerage Zhibao Technology (ZBAO) priced its US IPO at the low end to raise $6 million at a $127 million market cap. It finished down 15%.
| 3 IPOs During the Week of April 1st, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 04/05 |
| Contineum Therapeutics (CTNM) | $110M | $429M | -6% | -4% | -4% |
| Phase 1 biotech developing small molecule therapies for inflammatory diseases. | |||||
| Massimo Group (MAMO) | $6M | $186M | 0% | -33% | -13% |
| Manufactures and distributes powersports vehicles and motor boats. | |||||
| Zhibao Technology (ZBAO) | $6M | $127M | -20% | -8% | -15% |
| Digital insurance brokerage in China. | |||||
Five IPOs joined the pipeline this past week. Cybersecurity platform Rubrik (RBRK) and cruise operator Viking Holdings (VIK) led the additions, filing for deals we estimate could raise $500 million. Aerospace parts maker Loar Holdings (LOAR) also filed for a sizable offering.
| 5 Filings During the Week of April 1st, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Springview (SPHL) | $9M | Real Estate | Univest Sec. |
| Designs and constructs residential and commercial buildings in Singapore. | |||
| Viking (VIK) | $500M | Consumer Discretionary | BofA |
| Global luxury river and ocean cruise line. | |||
| Fuxing China Group (FFFZ) | $9M | Consumer Discretionary | Boustead |
| Chinese producer of zipper sliders and chains. | |||
| Loar Holdings (LOAR) | $100M | Industrials | Jefferies |
| Makes niche aerospace and defense components. | |||
| Rubrik (RBRK) | $500M | Technology | Goldman |
| Provides a hybrid cloud data management and security platform for enterprises. | |||
This past week, we released our updated review on the 1Q IPO market, as well as our report on IPO rankings for the Big Four accounting firms.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/4/2024, the Renaissance IPO Index was up 6.2% 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 Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index was up 0.4% year-to-date, while the ACWX was up 4.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Wise.
