Four IPOs each raised at least $75 million this week as the Fall IPO market continued to hum along, while one company postponed its deal.
Early childhood education (ECE) provider KinderCare (KLC) priced just below the midpoint of the range to raise $576 million at a $2.8 billion market cap. After being acquired by Partners Group in 2015 and then withdrawing its IPO attempt in 2022, KinderCare has refocused on its core business, closing underperforming childcare locations and acquiring or opening new facilities in attractive locations. The company has now returned to pre-pandemic occupancy rates and has the capacity to serve over 200,000 children across 1,500 KinderCare Learning Centers in 40 states. While investors demanded a slight discount to the original deal terms, KinderCare looks to capitalize on secular trends which will continue to increase the demand for early childcare services in the US. KinderCare finished the week flat.
Respiratory disease biotech Upstream Bio (UPB) priced its upsized deal at the high end of the range to raise $255 million at a $948 million market cap. After acquiring its lead asset, verekitug, from Astellas Pharma in 2021, Upstream reported results from a Phase 1b trial in severe asthma patients in May 2024 which suggested that it may have both superior efficacy and a significantly more convenient dosing schedule than AstraZeneca and Amgen’s approved drug, Tezspire (tezepelumab). Given that Tezspire has already surpassed $1 billion in annualized sales since being approved in 2021, Upstream should have a large market opportunity to the extent that it can continue to report positive results from its ongoing Phase 2 trial, which are expected to report data in the 2H25 and 2H26. Upstream traded up 25%.
Neuroimaging technology company CeriBell (CBLL) priced its upsized IPO above the high end of its upwardly revised range to raise $180 million at a $644 million market cap. The company manufactures and sells a point-of-care electroencephalography (EEG) platform designed to continuously monitor and rapidly detect seizures in critically ill patients in acute care settings. Its EEG platform, the Ceribell System, aims to be considerably more convenient than traditional EEG systems, taking just five minutes to set up the headband and electrodes. CeriBell has shown revenue traction, reporting 47% revenue growth to a $68 million run-rate in the 3Q24. CeriBell traded up 47%.
RNA-focused biotech CAMP4 Therapeutics (CAMP) priced its upsized IPO below the range to raise $75 million at a $221 million market cap. CAMP4 is developing therapies targeting regulatory RNA, which is a relatively new field of science focused on RNA which modulates gene expression and protein production. After a couple of investigatory partnerships with Biogen and Alnylam appear to have been terminated, CAMP4 entered into a drug discover agreement with BioMarin in September 2024, including a $1 million upfront payment and up to $370 million of milestone payments. CAMP4 finished the week down 2%.
Lubricants distributor Moove (MOOV) postponed its proposed $400 million IPO this week, citing market conditions. Being spun out of Brazilian conglomerate Cosan, Moove is a prominent manufacturer and distributor of lubricants and industrial fluids in South America, and recently expanded significantly into the US with the acquisition of PetroChoice in 2022. The company reported a revenue contraction in the 1H24, however, and insiders were slated to sell 75% of shares being offered in the deal, which may have turned investors off of the deal.
| 9 IPOs During the Week of October 7th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/11 |
| CeriBell (CBLL) | $180M | $644M | 13% | +47% | +47% |
| Makes a point-of-care rapid EEG to detect and monitor seizures in acute care. | |||||
| Upstream Bio (UPB) | $255M | $948M | 6% | +29% | +29% |
| Phase 2 respiratory biotech developing an antibody that targets the TSLP receptor. | |||||
| KinderCare (KLC) | $576M | $2,766M | -4% | +9% | +18% |
| Largest private provider of early childhood education and care services in the US. | |||||
| Rising Dragon Acquisition (RDACU) | $50M | $65M | 0% | +0% | +0% |
| Blank check company targeting small-cap businesses. | |||||
| Cohen Circle Acquisition (CCIRU) | $200M | $276M | 0% | +0% | +0% |
| Blank check company led by SPAC veteran Betsy Cohen targeting fintech. | |||||
| Launch Two Acquisition (LPBBU) | $200M | $250M | 0% | +0% | +0% |
| Blank check company targeting tech and software infrastructure businesses. | |||||
| CAMP4 Therapeutics (CAMP) | $75M | $221M | -27% | -3% | -3% |
| Clinical-stage biotech developing RNA-based therapies to target genetic diseases. | |||||
| SKK Holdings (SKK) | $10M | $63M | -11% | +51% | -30% |
| Provides civil engineering services for utility projects in Singapore. | |||||
| Click Holdings (CLIK) | $6M | $60M | 0% | -34% | -60% |
| Provides staffing and other human resources services in Hong Kong. | |||||
Three small IPOs submitted initial filings this past week. Singapore-based shipbroking company Vantage (VNTG.RC) filed to raise $16 million, Chinese digital solutions provider Youxin Technology (YAAS) filed to raise $10 million, and corporate communications and events company TEN Holdings (XHLD) filed to raise $13 million.
| 3 Filings During the Week of October 7th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| TEN Holdings (XHLD) | $13M | Communication Services | Bancroft Capital |
| Provides event planning and production for virtual, hybrid, and physical events. | |||
| Youxin Technology (YAAS) | $10M | Technology | Aegis Cap. |
| Chinese provider of digital transformation software and services for retailers. | |||
| Vantage (VNTG.RC) | $16M | Industrials | Network 1 |
| Singapore-based shipbroking company focused on petroleum products. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/11/24, the Renaissance IPO Index was up 15.7% year-to-date, while the S&P 500 was up 21.9%. 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 9.4% year-to-date, while the ACWX was up 11.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche AG and Amman Mineral Internasional.
