Three IPOs each raised at least $100 million this week, in a welcome bump in activity.
Natural gas producer BKV (BKV) priced its IPO below the range to raise $270 million at a $1.5 billion market capitalization. Operating primarily in the Barnett Shale, the company is aiming to deliver relatively stable production in the near term as it pauses significant capex spending until natural gas prices recover. The company is also developing a number of carbon capture projects intended to offset the emissions of its natural gas business, with its first such project recently coming online. The company’s reliance on difficult-to-predict natural gas prices may have given pause to some investors. BKV finished the week slightly above issue.
Metabolic disease-focused biotech BioAge Labs (BIOA) priced its doubly-upsized deal at the midpoint to raise $198 million at a $660 market cap. Investor interest in the deal is likely driven by BioAge’s differentiated approach to the metabolic disease space, focusing on the role of apelin (rather than incretins like GLP-1). The company aims to combine its lead candidate, azelaprag, with existing GLP-1 based treatment, and is currently conducting a Phase 2 trial in combination with Eli Lilly’s tirzepatide (Zepbound) in patients aged 55+. Topline results are expected in the 3Q25 and will be highly consequential for the company. BioAge finished the week up 17%.
Pharmacy services company Guardian Pharmacy Services (GRDN) priced its upsized deal at the low end of the range to raise $112 million at an $869 million market cap. Guardian primarily provides prescription management and deliver to long-term healthcare facilities, with a particular focus on assisted living facilities, which it believes is a particularly underserved segment of the market. The company has managed to grow revenue at a 15% CAGR for multiple years, while also maintaining healthy and highly consistent margins, primarily expanding its pharmacy footprint through acquisition. Guardian finished the week up 27%.
| 4 IPOs During the Week of September 23rd, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/27 |
| Guardian Pharmacy (GRDN) | $112M | $869M | -7% | +14% | +27% |
| Provides pharmacy services to long-term healthcare facilities. | |||||
| BioAge Labs (BIOA) | $198M | $660M | 0% | +2% | +17% |
| Phase 2 biotech developing obesity therapies by targeting metabolic aging. | |||||
| BKV Corp (BKV) | $270M | $1,514M | -10% | +0% | +0% |
| US natural gas producer operating in the Barnett and Marcellus Shale. | |||||
| Premium Catering (PC) | $10M | $76M | 6% | -22% | -13% |
| Provides food catering services to foreign workers and others in Singapore. | |||||
Four IPOs and two SPACs submitted initial filings this past week. Hong Kong-based maritime shipping company Intercont (NCT) filed to raise $35 million, inflammation-focused biotech Apimeds Pharmaceuticals (APUS) filed to raise $12 million, Malaysian fiberglass producer WF Holding (WFF) filed to raise $10 million, and China-based climate control equipment manufacturer Leizig Thermal Management (LZIG) filed to raise $8 million.
Blank check Charlton Aria Acquisition (CHARU) filed to raise $75 million to target companies with expansion opportunities, and Jackson Acquisition II (JACS.U) filed to raise $200 million targeting healthcare.
| 6 Filings During the Week of September 23rd, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Intercont (NCT) | $35M | Industrials | Kingswood |
| Provides maritime shipping and seaborn pulping services. | |||
| Jackson Acquisition II (JACS.U) | $200M | SPAC | Roth Cap. |
| Blank check company targeting healthcare. | |||
| Leizig Thermal Management (LZIG) | $8M | Industrials | Revere Sec. |
| China-based manufacturer of industrial climate control equipment. | |||
| Apimeds Pharmaceuticals (APUS) | $12M | Health Care | EF Hutton |
| Clinical stage biotech developing bee venom-based treatment for inflammation. | |||
| Charlton Aria Acquisition (CHARU) | $75M | SPAC | Clear Street |
| Blank check company targeting companies with expansion opportunities. | |||
| WF Holding (WFF) | $10M | Materials | Pacific Century |
| Malaysia-based producer of fiberglass reinforced plastic. | |||
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/27/2024, the Renaissance IPO Index was up 14.3 % year-to-date, while the S&P 500 was up 21.0%. 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 down 5.6% year-to-date, while the ACWX was up 13.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Amman Mineral Internasional.
