Four IPOs debuted in the US this week, led by a Singapore-based hot pot restaurant operator, though the largest scheduled deal didn’t make it to market. In the pipeline, four sizable issuers submitted initial filings, led by one that could raise $1 billion.
The week’s largest scheduled deal, online casino games publisher Games Global (GGL) withdrew its $254 million offering hours before it was expected to price, citing market conditions.
Hong Kong-listed Super Hi International (HDL) raised $53 million at a $1.3 billion market cap in its US IPO. Spun out of Hong Kong-listed restaurant brand Haidilao at the end of 2022, Super Hi operates hot pot restaurants under its former parent's brand in the international market. It has grown into the third largest brand in the international Chinese cuisine restaurant market, though it faces significant competition from many close substitutes. Super Hi finished up 14%.
Three very small issuers also priced, all of which were based in or had ties to China. Logistics services firm Armstrong Holding (BTOC) raised $8 million and finished down 1%. Education support services provider JIADE (JDZG) raised $8 million and finished up 192%. Beauty appliance supplier Raytech Holding (RAY) raised $6 million and finished up 5%.
| 5 IPOs During the Week of May 13th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/17 |
| JIADE (JDZG) | $8M | $97M | -11% | +2% | +192% |
| Provides support services to adult education institutions in China. | |||||
| Super Hi International (HDL) | $53M | $1,264M | 0% | +14% | +14% |
| Operates hot pot restaurants under the Haidilao brand in the international market. | |||||
| Raytech (RAY) | $6M | $70M | -11% | +6% | +5% |
| Hong Kong supplier of personal care electrical appliances. | |||||
| RF Acquisition II (RFAIU) | $100M | $131M | 0% | +1% | +1% |
| Blank check company targeting the deep tech sector in Asia. | |||||
| Armlogi Holding (BTOC) | $8M | $208M | -9% | -8% | -1% |
| US provider of cross-border warehousing and logistics services to customers in China. | |||||
The week’s pipeline additions were led by four sizable issuers. Aluminum company Novelis (NVL) filed for an estimated $1.3 billion offering, making it the largest company in the US pipeline. Mexican airline Grupo Aeromexico (AERO) filed to raise $300 million, and biotechs Telix Pharmaceuticals (TLX) and Rapport Therapeutics (RAPP) each filed to raise $100 million.
| 8 Filings During the Week of May 13th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Rapport Therapeutics (RAPP) | $100M | Health Care | Goldman |
| Phase 2-ready biotech developing small molecule therapies for CNS disorders. | |||
| Telix Pharmaceuticals (TLX) | $100M | Health Care | Jefferies |
| Commercial-stage Australian biotech developing therapeutic and diagnostic radiopharmaceuticals. | |||
| Chenghe Acquisition II (CHEB.U) | $75M | SPAC | Cohen & Company Securities |
| Blank check company targeting businesses in or with a focus on Asian markets. | |||
| Galleinphi (GALE) | $15M | Consumer Discretionary | Tiger Brokers |
| Chinese wholesaler of consumer electronics. | |||
| Grupo Aeromexico (AERO) | $300M | Industrials | Barclays |
| Restructured Mexican airline. | |||
| Kingtitan Technology (KTA) | $19M | Industrials | Cathay Securities |
| Chinese provider of non-pneumatic tires. | |||
| Novelis (NVL) | $1,300M | Materials | Morgan Stanley |
| US-based aluminum roller and recycler owned by India's Hindalco. | |||
| Rise Smart Group (RSHL) | $6M | Consumer Discretionary | Revere Sec. |
| Provides services to students in Hong Kong seeking higher education abroad. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/16/2024, the Renaissance IPO Index was up 4.4% year-to-date, while the S&P 500 was up 11.7%. 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 5.6% year-to-date, while the ACWX was up 8.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Porsche.
