Three sizable IPOs priced this past week, joined by a flurry of small issuers and blank check companies. One scheduled deal did not get done (PRB).
Tech distributor Ingram Micro (INGM) priced slightly above the midpoint to raise $409 million at a $5.3 billion market cap. Ingram Micro is among the largest business technology distributors in the world by revenue and global footprint, with operations in 57 countries and 134 global logistics and service centers. The company has struggled to grow in recent years due to a cyclical downturn in IT spending, and working capital swings have caused volatility in its cash flow. Ingram Micro finished up 10%.
After upwardly revising terms and offering more shares at pricing, biotech Septerna (SEPN) raised $288 million at a $797 million market cap. Septerna is developing orally-available small molecule drugs targeting G protein-coupled receptors (GPCRs). Its lead and sole clinical-stage program is currently enrolling in a Phase 1 trial in patients with hypoparathyroidism, with topline data expected in mid-2025. Septerna finished up 19%.
China-based WeRide (WRD) priced at the low end to raise $120 million ($441 million incl. concurrent private placements) at a $5.2 billion market cap. The company had previously planned to list in late August but postponed, reviving the offering shortly after and relaunching this past week. WeRide is developing autonomous driving products and services, and is currently operating and testing its products throughout 30 cities in 7 countries. WeRide finished up 7%.
Several small issuers also listed this past week, including consumer products firm Synergy CHC (SNYR; $10mm), online casino platform High Roller Technologies (ROLR; $10mm), and Asia-based companies SAG Holdings (SAG; $7mm) and Li Bang (LBGJ; $6mm).
| 11 IPOs During the Week of October 21st, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/25 |
| Septerna (SEPN) | $288M | $797M | 13% | +19% | +19% |
| Phase 1 biotech targeting GPCRs in multiple therapeutic areas. | |||||
| Ingram Micro (INGM) | $409M | $5,260M | 2% | +12% | +10% |
| Leading IT solutions distributor. | |||||
| WeRide (WRD) | $120M | $5,194M | -9% | +7% | +7% |
| Chinese developer of autonomous vehicle systems and software. | |||||
| Oaktree Acq. III Life Sci (OACCU) | $175M | $224M | 0% | +0% | +0% |
| Blank check company formed by Oaktree Capital targeting healthcare businesses. | |||||
| Bold Eagle Acquisition (BEAGU) | $250M | $304M | 0% | +0% | +0% |
| Eighth blank check company formed by SPAC veteran Jeff Sagansky and former MGM CEO Harry Sloan. | |||||
| Aldel Financial II (ALDFU) | $200M | $260M | 0% | +0% | +0% |
| Second blank check company formed by Fortress Investment Group co-founder Robert Kauffman. | |||||
| Charlton Aria Acquisition (CHARU) | $75M | $97M | 0% | +0% | +0% |
| Blank check company targeting companies with expansion opportunities. | |||||
| High Roller Technologies (ROLR) | $10M | $68M | -11% | -3% | -3% |
| Operates an online casino gaming platform. | |||||
| Li Bang (LBGJ) | $6M | $74M | -20% | +3% | -5% |
| Chinese commercial kitchen equipment producer. | |||||
| Synergy CHC (SNYR) | $10M | $79M | -10% | +0% | -7% |
| Provides consumer health care, beauty, and lifestyle products. | |||||
| SAG Holdings (SAG) | $7M | $79M | 100% | -21% | -25% |
| Singaporean distributor of spare automotive and industrial parts. | |||||
| 4 Filings During the Week of October 21st, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Kandal M Venture (FMFC) | $12M | Consumer Discretionary | Cathay Securities |
| Cambodia-based contract manufacturer of affordable luxury leather goods. | |||
| Translational Development (TDACU) | $150M | SPAC | BTIG |
| Blank check company backed by Stone Capital Partners. | |||
| Elite Performance (BYLT) | $15M | Consumer Staples | EF Hutton |
| Developing a portfolio of nutrition and fitness brands. | |||
| Horizon Space Acq. II (HSPTU) | $60M | SPAC | Maxim |
| Second blank check company led by Chinese executive Michael Li. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/24/2024, the Renaissance IPO Index was up 18.4% year-to-date, while the S&P 500 was up 23.2%. 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 8.4% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Amman Mineral Internasional.
