A handful of IPOs priced this past week, led by three sizable names.
One large issuer joined both the pipeline and the calendar: Chile-based LATAM Airlines Group (LTM) filed to cross-list in the US, and its offering is expected to raise $533 million in the week ahead.
Insurance distributor TWFG (TWFG) priced above the range to raise $187 million at a $929 million market cap. Also known as The Woodlands Financial Group, TWFG distributes personal and commercial property & casualty insurance, stating that it is the seventh largest personal lines agency in the US by revenue. The company’s business is concentrated in Texas, which accounts for more than half of its total written premiums. TWFG finished up 33%.
Hospital operator Ardent Health (ARDT) downsized and priced $4 below the range to raise $192 million at a $2.3 billion market cap. Ardent states that it is the fourth largest privately held, for-profit operator of hospitals in the US. It operates a system of 30 acute care hospitals and more than 200 sits of care across six states, holding a 10%+ share of its markets. LBO’d by Sam Zell’s Equity Group Investments in 2015, the company is levered post-IPO. Ardent finished up 8%.
Autoimmune biotech Artiva Biotherapeutics (ARTV) offered more shares and priced below the range to raise $167 million at a $284 million market cap. Artiva is focused on developing "off-the-shelf" natural killer cell-based therapies for autoimmune diseases and cancers. Its lead candidate is currently in an ongoing Phase 1/1b trial in lupus nephritis and a basket investigator-initiated trial in multiple autoimmune indications, with initial data from at least one of these trials expected in the 1H25. Artiva finished flat.
Holdover QMMM Holdings (QMMM) raised $9 million at a $69 million market cap. The Hong Kong-based company provides digital media advertising and virtual avatar & virtual apparel technology services. Through its operating subsidiaries, QMMM has been involved in over 500 commercial campaigns for a variety of customers across different verticals. QMMM finished up 2%.
| 4 IPOs During the Week of July 15th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/19 |
| TWFG (TWFG) | $187M | $929M | 13% | +29% | +33% |
| P&C insurance broker with a focus on personal and small business. | |||||
| Ardent Health (ARDT) | $192M | $2,255M | -24% | +0% | +8% |
| Operates hospitals and healthcare clinics in six states. | |||||
| QMMM Holdings (QMMM) | $9M | $69M | -20% | +2% | +2% |
| Hong Kong-based provider of digital media advertising and VR services. | |||||
| Artiva Biotherapeutics (ARTV) | $167M | $284M | -20% | +0% | +0% |
| Phase 1 biotech developing off-the-shelf Natural Killer therapies for autoimmunity. | |||||
| 5 Filings During the Week of July 15th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| FatPipe (FATN) | $17M | Technology | Roth Cap. |
| Provides network software solutions for enterprises. | |||
| LATAM Airlines Group (LTM) | $533M | Industrials | Goldman |
| Largest airline group in South America. | |||
| Vine Hill Capital (VCICU) | $200M | SPAC | Stifel |
| Blank check company targeting the industrial and services industries. | |||
| Expectation Acquisition (ESPAU) | $60M | SPAC | Lucid Capital Markets |
| Blank check company targeting businesses with a connection to the Asian market. | |||
| GSR III Acquisition (GSRTU) | $200M | SPAC | SPAC Partners |
| Blank check company led by SPAC veterans targeting "high potential" businesses in the US. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/18/2024, the Renaissance IPO Index was up 9.4% year-to-date, while the S&P 500 was up 17.1%. 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 3.5% year-to-date, while the ACWX was up 9.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Amman Mineral Interasional and Barito Renewables Energy.
