US IPO Weekly Recap: Standard Aero soars in 7-IPO week, while big tech names join pipeline

Seven IPOs debuted in the US this past week, raising a combined $1.8 billion. Most of the week's proceeds came from Carlyle-backed StandardAero (SARO), which popped 37% in its debut. The other six deals garnered more muted responses, with single-digit gains or losses. Six companies submitted initial filings, led by fast-growing AI chip developer Cerebras Systems (CBRS) and mature IT products distributor Ingram Micro (INGM).

Aircraft engine maintenance provider StandardAero (SARO) priced its upsized IPO above the range to raise $1.4 billion at an $8.0 billion market cap, making it the year's third-largest IPO. Acquired by Carlyle in 2019, StandardAero provides aerospace engine aftermarket services, consisting of maintenance, repair, and overhaul solutions for fixed and rotary wing aircraft across commercial, military, and business aviation sectors. The company has longstanding relationships with both engine manufacturers and aircraft operators, and is authorized by major OEMs. Standard Aero earns most of its revenue through long-term contracts, and its revenue growth accelerated in the most recent quarter, although it also has a sizable debt burden. It finished the week up 35%.

Outparcel-focused FrontView REIT (FVR) priced at the midpoint to raise $251 million at a $518 million market cap. FrontView is an internally-managed net-lease REIT that specializes in acquiring, owning, and managing outparcel properties across the United States. The company focuses on properties with direct frontage on high-traffic roads, providing high visibility to consumers. As of June 30, 2024, FrontView's portfolio comprised 278 properties across 31 states, totaling approximately 2.1 million rentable square feet. Its tenants include service-oriented businesses such as restaurants, cellular stores, financial institutions, automotive stores, and medical providers. FrontView REIT finished the week up 1%.

Chinese courier service BingEx (FLX) raised $66 million at a $1.2 billion market cap by pricing slightly above the midpoint. Branded as FlashEx in China, or Shan Song, BingEx states that it is the country's leading independent on-demand dedicated courier service provider. Unlike many competitors, the company does not combine multiple orders or use multiple couriers, instead assigning a dedicated rider to make a single delivery. BingEx's US IPO is notable amid a lack of sizable Chinese issuers during the past three years. The company finished the week up 9%.

Online bank Chain Bridge Bancorp (CBNA) priced below the range to raise $41 million at a market cap of $141 million, the first regional bank IPO in over two years. Headquartered outside of Washington, DC, Chain Bridge Bancorp serves a variety of borrowers, though its depositors are primarily Republican political organizations, including corporate PACs, national party committees, candidate committees, and Super PACs. As of June 30, 2024, it held total assets of $1.4 billion. It closed its first day down 4%.

Hong Kong-based software services firm Wellchange Holdings (WCT) priced at the low end to raise $8 million at an $84 million market cap. Wellchange provides customized software solutions, cloud-based SaaS platforms, and "white-label" software design and development services, particularly for small and medium-sized businesses. It finished the week down 5%.

Chinese fastener manufacturer ZJK Industrial (ZJK) priced its IPO at the midpoint to raise $6 million at a $306 million market cap. ZJK's products include standard screws, precision screws and nuts, high-strength bolts, CNC machine parts, surface mounting products, and PVD products. ZJK Industrial finished the week flat.

Singapore-based home goods retailer HomesToLife (HTLM) priced its IPO at the low end to raise $5 million at a $58 million market cap. The company sells leather and fabric upholstered furniture as well as case goods (e.g. coffee tables, dining table, bedding) and accessories sourced from China through six retail locations in Singapore under its own brand as well as select third-party brands. HomesToLife finished the week up 1%.

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Six companies submitted initial filings this past week, most notably Ingram Micro (INGM) and Cerebras Systems (CBRS). In addition, GPCR-focused biotech Septerna (SEPN) filed to raise an estimated $100 million, along with US oil and gas producer Infinity Natural Resource (INR). Smaller filings arrived from Chinese water treatment services company Decent Holding (DXST) and Chinese oilfield services company Leishen Energy (LSE).

Four SPACs also submitted initial filings. Aldel Financial II (ALDU), led by Fortress co-founder Robert Kauffman, filed to raise $200 million. Ocean Capital Acquisition (OCACU), led by Hong Kong-based investment manager Stephen Sze, filed to raise $60 million. A SPAC III Acquisition (ASPCU) filed to raise $55 million to target ESG businesses. Oaktree Acquisition III Life Sciences (OACCU), formed by Oaktree Capital to target the healthcare sector, filed to raise $175 million.


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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/4/2024, the Renaissance IPO Index was up 12.4% year-to-date, while the S&P 500 was up 20.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Arm Holdings (ARM). The Renaissance International IPO Index was down 5.2% year-to-date, while the ACWX was up 11.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Amman Mineral Internasional.