The IPO market closed out June with four deals, three of which raised $100+ million. In the pipeline, nine companies submitted initial filings, led by what could be the largest IPO of 2024 to date.
Web comic platform WEBTOON Entertainment (WBTN) led the week’s deals, pricing at the high end to raise $315 million at a $2.8 billion market cap. Carved out of South Korean internet company NAVER, WEBTOON has attracted about 170 million monthly active users with its novel form of digital storytelling. Its paying users make up a relatively small portion of its overall base, and there’s some geographic concentration. WEBTOON finished up 9%.
Oil land acquirer LandBridge (LB) priced below the range to raise $247 million at a $1.2 billion market cap. LandBridge was formed by energy-focused private equity firm Five Point Energy to support the water handling infrastructure of portfolio company WaterBridge by managing and expanding a strategic land position in the Delaware Basin. The company is profitable and growing, though it will be slightly leveraged post-IPO. LandBridge finished up 36%.
Immunology biotech Alumis (ALMS) downsized and priced at the low end to raise $210 million at an $886 million market cap. The company is initially focused on developing two Tyrosine Kinase 2 (TYK2) inhibitors. Its most advanced candidate, ESK-001, is an oral, highly selective, small molecule, allosteric inhibitor of TYK2. The company plans to initiate Phase 3 pivotal trials of ESK-001 in moderate-to-severe plaque psoriasis in the 2H24. Alumis finished down 17%.
Cross-listing from the ASX, natural gas E&P Tamboran Resources (TBN) downsized and priced at the low end to raise $75 million at a $341 million market cap. Tamboran is focused on the commercial development of resources in Australia’s Beetaloo Basin, with exploration permits to approximately 4.7 million contiguous gross acres. The company is early stage and does not expect to generate material revenues from production until 2026 at the earliest. Tamboran finished down 6%.
| 5 IPOs During the Week of June 24th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 06/28 |
| LandBridge (LB) | $247M | $1,224M | -17% | +36% | +36% |
| Surface acreage acquirer in the Delaware Basin formed by Five Point Energy. | |||||
| WEBTOON Entertainment (WBTN) | $315M | $2,808M | 8% | +10% | +9% |
| Leading global online cartoon platform carved out of South Korea's NAVER. | |||||
| Graf Global (GRAF.U) | $200M | $250M | 0% | +0% | +0% |
| Blank check company led by SPAC veteran James Graf. | |||||
| Tamboran Resources (TBN) | $75M | $341M | -6% | -9% | -6% |
| Natural gas E&P focused on the Beetaloo Basin in Northern Australia. | |||||
| Alumis (ALMS) | $210M | $886M | -6% | -17% | -17% |
| Phase 3-ready biotech developing kinase inhibitors for immune-mediated diseases. | |||||
The week’s new filings were led by temp-controlled warehouse REIT Lineage (LINE), which could raise an estimated $3.5 billion, potentially making it the largest IPO of 2024 to date. Other large additions included auto software provider Solera (SLRA), financial software firm OneStream (OS), insurance distributor TWFG (TWFG), and autoimmune disease biotech Aritva Biotherapeutics (ARTV).
| 13 Filings During the Week of June 24th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Andretti Acquisition II (POLEU) | $200M | SPAC | BTIG |
| Second blank check company affiliated with racing driver Michael Andretti. | |||
| Artiva Biotherapeutics (ARTV) | $100M | Health Care | Jefferies |
| Phase 1 biotech developing off-the-shelf natural killer cell-based therapies for autoimmune diseases. | |||
| Calisa Acquisition (ALISU) | $60M | SPAC | EarlyBird |
| Blank check company targeting businesses in Asia. | |||
| Cayson Acquisition (CAPNU) | $60M | SPAC | EarlyBird |
| Blank check company targeting businesses in Asia. | |||
| DiamiR Biosciences (DIMR) | $7M | Health Care | |
| Developing blood-based tests for neurodegenerative diseases. | |||
| OneStream (OS) | $500M | Technology | Morgan Stanley |
| Provides enterprise software for financial and operational management. | |||
| Safe Pro Group (SPAI) | $6M | Industrials | Dawson James |
| Makes ballistic protective products and provides mission critical drone services. | |||
| Solera (SLRA) | $1,500M | Technology | Goldman |
| Provides business software used by auto insurers, dealerships, and others. | |||
| AA Mission Acquisition (AAMU) | $300M | SPAC | Clear Street |
| Blank check company targeting businesses in Asia. | |||
| Click Holdings (CLIK) | $6M | Industrials | Revere Sec. |
| Provides staffing and other human resources services in Hong Kong. | |||
| Lineage (LINE) | $3,500M | Real Estate | Morgan Stanley |
| Leading US temperature-controlled warehouse REIT with a global presence. | |||
| TWFG (TWFG) | $150M | Financials | JP Morgan |
| Distributes property & casualty insurance with a focus on personal and small business. | |||
| zSpace (ZSPC) | $30M | Technology | Roth Cap. |
| Provides an AR/VR hardware and software platform for the education industry. | |||
The 2Q has officially come to a close, and as of now, it looks like the summer is poised to end on a more eventful note than it started. For more on what happened this past quarter, as well as what to expect in the coming months, read our newly-released 2Q 2024 US IPO Market Review.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/27/2024, the Renaissance IPO Index was up 8.4% year-to-date, while the S&P 500 was up 15.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Nu Holdings (NU) and Kenvue (KVUE). The Renaissance International IPO Index was down 5.4% year-to-date, while the ACWX was up 5.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Amman Mineral Internasional.
