Nine IPOs debuted this week, raising a total of more than $5.9 billion. One SPAC also listed. Four IPOs and two SPACs submitted initial filings this past week.
Leading temp-controlled warehouse REIT Lineage (LINE) priced its upsized IPO slightly above the midpoint to raise $4.4 billion at a $19.4 billion market cap, in 2024’s largest IPO of the year to date. The company states that it is the world's largest global temperature-controlled warehouse REIT, with over 84.1 million square feet and 3.0 billion cubic feet of capacity. Its network comprises 482 warehouses predominantly located in densely populated critical-distribution markets, with 312 in North America, 82 in Europe, and 88 in Asia-Pacific. Lineage currently serves a diversified customer base of more than 13,000 of the largest food retailers, manufacturers, processors, and food service distributors in the industry. However, it is highly levered at 7.2x net debt to TTM adjusted EBITDA. Lineage finished up 6%.
Health services provider Concentra (CON) priced near the low end of the range to raise $529 million at a $3.0 billion market cap. The company states it is the US’ largest provider of occupational heath services by number of locations. As of March 31, 2024, the company operated 547 stand-alone occupational health centers in 41 states, and 151 onsite health clinics at employer worksites in 37 states. Concentra boasts a network of approximately 11,000 colleagues and affiliated physicians and clinicians, who served more than 50,000 patients on average each business day in 2023. Its leading position, however, may subject it to limited future growth, and it only recorded a 2% increase in revenue in the 1Q24. Concentra finished down 3%.
Financial software provider OneStream (OS) priced above the range to raise $490 million at a $5.0 billion market cap. The company offers a platform that unifies core financial and broader operational data and processes within a single space. Its client base includes global enterprises, mid-market organizations, and government entities, and as of March 31, 2024, it had over 1,400 customers across a variety of industries, including industrials, healthcare, and consumer. The company has posted substantial revenue growth lately, driven by higher margin subscription revenue. Despite this, it remains slightly unprofitable on an EBITDA basis. OneStream finished up 40%.
South American airline group LATAM Airlines Group (LTM) raised $456 million at a $7.3 billion market cap. The company is the largest airline group in South America, with over twice the number of flights of any other airline group in the region, and one of the 10 largest airline groups in the world by the number of flights operated in the twelve months ended March 31, 2024. It is also the largest air cargo group carrier in South America by cargo fleet. It provides passenger transport services to 148 destinations in 26 countries, and cargo services to 166 destinations in 33 countries. In 2022, the company completed a reorganization process under Chapter 11. LATAM Airlines Group finished up 5%.
Sweden-based esports organization NIP Group (NIPG) priced at the low end to raise $20 million at a $505 million market cap. The company operates throughout Asia, Europe, and South America. through two esports brands: Ninjas in Pyjamas and eStar Gaming. It also has a portfolio of esports teams competing in video game titles such as League of Legends, CS: GO, Honor of Kings, Rainbow Six, Rocket League, Fortnite, and Call of Duty Mobile. NIP Group finished flat.
Singaporean tech firm Orangekloud Technology (ORKT) priced at the low end to raise $13 million at a $108 million market cap. The company operates in Singapore and Malaysia through its three operating subsidiaries, which provide a variety of software development services for SMEs. The company generates revenue through sales of licenses and products, as well as the provision of services and support. Orangekloud Technology finished up 16%.
Hong Kong-based construction services firm Primega Group (PGHL) priced at the low end to raise $7 million at a $96 million market cap. Operating through its subsidiary Primega Construction, the company provides transportation services to the Hong Kong construction industry. Its primary services include soil and rock transportation, diesel oil trading, and construction works, which mainly include ELS works and bored piling. Primega generally provides its services as a subcontractor. It finished up 16%.
Japan-based BloomZ (BLMZ) raised $5 million at a $53 million market cap. Operating through its subsidiary BloomZ Japan, the company is currently engaged in three lines of business: audio production, management of virtual animated characters known as “VTubers”, and voice actor workshops. BloomZ finished down 31%.
The sole SPAC to price this past week was DT Cloud Star Acquisition (DTSQU), which is led by an executive from CITIC Securities.
While not included below, Australia-based gold exploration company Nova Minerals (NVA) priced below the range to raise $3 million at a $30 million market cap in a unit offering. The company has the majority stake of the Estelle Gold Project, which comprises over 125,000 acres of land in Alaska northwest of Anchorage along the Tintina Gold Belt.
| 9 IPOs During the Week of July 22nd, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/26 |
| OneStream (OS) | $490M | $4,974M | 11% | +34% | +40% |
| Provides enterprise software for financial management and reporting. | |||||
| Orangekloud Technology (ORKT) | $13M | $108M | 6% | +20% | +16% |
| Singapore-based provider of software development services for SMEs | |||||
| Primega Group (PGHL) | $7M | $96M | -20% | +6% | +16% |
| Provides transportation services to the construction industry in Hong Kong. | |||||
| Lineage (LINE) | $4,437M | $19,370M | 3% | +4% | +6% |
| Leading US temperature-controlled warehouse REIT with a global presence. | |||||
| LATAM Airlines Group (LTM) | $456M | $7,253M | 0% | +3% | +5% |
| Largest airline group in South America. | |||||
| DT Cloud Star Acquisition (DTSQU) | $60M | $78M | 0% | +0% | +0% |
| Blank check company led by an executive from CITIC Securities. | |||||
| NIP Group (NIPG) | $20M | $505M | -10% | +0% | +0% |
| Esports organization behind the Ninjas in Pyjamas teams in Sweden and China. | |||||
| Concentra (CON) | $529M | $2,975M | -4% | -4% | -3% |
| Occupational health services provider being spun out of Select Medical. | |||||
| BloomZ (BLMZ) | $5M | $53M | 8% | -43% | -31% |
| Japanese audio production and voice actor management company. | |||||
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Four IPOs submitted initial filings this past week. China-based autonomous vehicle developer WeRide (WRD) filed to raise $100 million. Hong Kong-based mobile and online game developer Pyro AI (PYRO) filed to raise $10 million at a $110 million market cap. Job Aire Group (JAG), which provides staffing services to the aviation industry, filed to raise $8 million at a $53 million market cap. Canadian clean tech company Aduro Clean Technologies (ADRO.RC) filed to raise $6 million.
Two SPACs also submitted initial filings this week: Launch Two Acquisition (LPBBU) filed to raise $200 million to target tech and software infrastructure, and Shepherd Ave Capital Acquisition (SPHAU) filed to raise $75 million to target businesses with underexploited expansion opportunities.
| 6 Filings During the Week of July 22nd, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| WeRide (WRD) | $100M | Technology | Morgan Stanley |
| Chinese developer of autonomous vehicle systems and software. | |||
| Job Aire Group (JAG) | $8M | Industrials | Spartan Capital |
| Provides staffing services to the aviation industry. | |||
| Launch Two Acquisition (LPBBU) | $200M | SPAC | Cantor Fitz. |
| Blank check company targeting tech and software infrastructure businesses. | |||
| Pyro AI (PYRO) | $10M | Technology | Cathay Securities |
| Hong Kong-based mobile and online game developer. | |||
| Shepherd Ave Capital Acq. (SPHAU) | $75M | SPAC | SPAC Partners |
| Blank check company targeting businesses with underexploited expansion opportunities. | |||
| Aduro Clean Technologies (ADRO.RC) | $6M | Industrials | EF Hutton |
| Canadian developer of chemical recycling technologies. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/25/2024, the Renaissance IPO Index was up 6.1% year-to-date, while the S&P 500 was up 14.1%. 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 8.5% year-to-date, while the ACWX was up 6.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Amman Mineral Internasional and Barito Renewables Energy.
