Just one large IPO priced this past week, while the other scheduled deal was pulled. Two blank checks also began trading.
Precision medicine company Tempus AI (TEM) priced at the high end to raise $411 million at a $6.4 billion market cap. The company’s Tempus Platform includes proprietary software and data pipelines to enable development of more personalized therapies. Highly unprofitable but growing, Tempus’ offerings have been used by approximately 95% of the largest public pharmaceuticals, and its clinical next generation sequencing volume in oncology rose nine-fold from 2018 to 2023. Tempus finished up 9%.
The week’s other scheduled deal, Australia-listed biotech Telix Pharmaceuticals (TLX) pulled its $202 million US offering, citing market conditions. In a press release, the company stated that because it didn’t need to raise capital, it didn’t feel the proposed discounts aligned with shareholders’ best interests.
Two blank check IPOs priced this past week, both of which were backed by experienced sponsor groups, a growing trend in 2024. Gaming veteran Mark Gerhard’s Centurion Acquisition (ALFUU) raised $250 million to target the tech sector, and biotech-focused venture firm Perceptive Advisors’ Perceptive Capital Solutions (PCSC) raised $75 million to target healthcare.
| 3 IPOs During the Week of June 10th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 06/14 |
| Tempus AI (TEM) | $411M | $6,377M | 3% | +9% | +9% |
| Provides data and analytics tools for precision medicine. | |||||
| Perceptive Capital (PCSC) | $75M | $97M | 0% | +1% | +1% |
| Blank check company backed by Perceptive Advisors targeting healthcare. | |||||
| Centurion Acquisition (ALFUU) | $250M | $313M | 0% | +0% | +0% |
| Blank check company targeting the tech sector. | |||||
| 6 Filings During the Week of June 10th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| CF Acquisition A (CFFA) | $100M | SPAC | Cantor Fitz. |
| Ninth blank check company formed by Cantor Fitzgerald. | |||
| Concentra (CON) | $500M | Health Care | JP Morgan |
| Occupational health services provider being spun out of Select Medical. | |||
| Star Fashion Culture (STFS) | $14M | Communication Services | WestPark Capital |
| Provides marketing services in China. | |||
| Launch One Acquisition (LPAAU) | $200M | SPAC | Cantor Fitz. |
| Blank check company targeting the healthcare sector. | |||
| NIP Group (NIPG) | $50M | Communication Services | Deutsche Bank |
| Esports organization behind the Ninjas in Pyjamas teams in Sweden and China. | |||
| Lithium Harvest (LIHV) | $20M | Materials | |
| Early-stage lithium supplier focused on the EV and broader battery markets. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/13/2024, the Renaissance IPO Index was up 5.9% year-to-date, while the S&P 500 was up 14.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Coinbase (COIN). The Renaissance International IPO Index was down 3.2% year-to-date, while the ACWX was up 6.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Wise.
