The IPO market kicked off the new year with three biotechs and an online home goods retailer, joined by four SPACs. Nine IPOs and three SPACs submitted initial filings.
CinCor Pharma (CINC) upsized and priced at the midpoint to raise $194 million at a $612 million market cap. CinCor's lead candidate has been designed to use a differentiated mechanism of action with the goal of providing an improved treatment for hypertension. In 2021, the biotech initiated several different trials for patients with hypertension, as well as primary aldosteronism. CinCor finished flat.
Amylyx Pharmaceuticals (AMLX) upsized and priced at the midpoint to raise $190 million at a $1.2 billion market cap. The company believes its lead candidate is the first to show both a functional and survival benefit in a large-scale trial of patients with amyotrophic lateral sclerosis. Based on its Phase 2 data, the company submitted an NDS in Canada and an NDA to the FDA in 2021, and plans to submit an MAA in Europe in the 1Q22. Amylyx finished down 5%.
Vigil Neuroscience (VIGL) priced below the range to raise $98 million at a $427 million market cap. The company is addressing microglial dysfunction, which has been implicated in neurodegenerative diseases. Its lead candidate is initially being developed for rare neurodegenerative disease ALSP, and entered its first-in-human Phase 1 trial in December 2021. Vigil finished down 10%.
Micro-cap online retailer Hour Loop (HOUR) raised $6 million at a $139 million market cap. Hour Loop operates primarily as a third-party seller on Amazon.com, selling items within home/garden decor, kitchenware, apparel, and electronics, and managing in total more than 100k SKUs. Hour Loop finished up 100%.
Four SPACs went public led by Sagansky and Sloan’s Screaming Eagle Acquisition (SCRMU), which raised $750 million.
| 8 IPOs During the Week of January 3rd, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/07 |
| Hour Loop (HOUR) | $6M | $139M | 33% | +100% | +100% |
| Online retailer selling various household goods primarily on Amazon. | |||||
| Cartica Acquisition (CITEU) | $200M | $250M | 0% | +1% | +1% |
| Blank check company backed by Cartica Management targeting India-focused tech businesses. | |||||
| C5 Acquisition (CXAC.U) | $250M | $313M | 0% | +1% | +1% |
| Blank check company formed by C5 Capital targeting space, cybersecurity, and energy transition. | |||||
| Viscogliosi Brothers Acq. (VBOCU) | $75M | $94M | 0% | +0% | +0% |
| Blank check company targeting the North American and European neuro-musculoskeletal industry. | |||||
| CinCor Pharma (CINC) | $194M | $612M | 0% | +0% | +0% |
| Phase 2 biotech developing oral treatments for hypertension and cardio-renal diseases. | |||||
| Screaming Eagle Acq. (SCRMU) | $750M | $938M | 0% | -1% | -1% |
| Ninth blank check company formed by SPAC veteran Jeff Sagansky and former MGM CEO Harry Sloan. | |||||
| Amylyx Pharmaceuticals (AMLX) | $190M | $1,151M | 0% | -5% | -5% |
| Phase 3 biotech developing therapies to treat ALS. | |||||
| Vigil Neuroscience (VIGL) | $98M | $427M | -13% | -10% | -10% |
| Phase 1 biotech developing antibody therapies for neurodegenerative diseases. | |||||
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Nine IPOs submitted initial filings. Leading mattress retailer Mattress Firm (MFRM) filed for an estimated $500 million IPO. Online real estate brokerage HomeSmart Holdings (HS), LNG services provider Excelerate Energy (EE), residential building products distributor Specialty Building Products (SBP), semiconductor solutions provider Credo Technology Group (CRDO), and gene therapy biotech Affinia Therapeutics (AFTX) all filed to raise $100 million. Sustainable bedding and clothing brand Cariloha (ALOHA) filed to raise $50 million. Software firm HeartCore Enterprises (HTCR) and Chinese financial services firm QinHong International (QHI) both filed to raise $15 million.
Three SPACs submitted initial filings led by growth-focused GLA II Meteora Acquisition (GLAA.U), which filed to raise $220 million.
| 12 Filings During the Week of January 3rd, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Cariloha (ALOHA) | $50M | Consumer Discretionary | Roth Cap. |
| Omnichannel brand of bedding, clothing, and bath goods made from bamboo. | |||
| Excelerate Energy (EE) | $100M | Energy | Barclays |
| Provides integrated liquefied natural gas solutions globally. | |||
| HomeSmart Holdings (HS) | $100M | Real Estate | JP Morgan |
| Operates an online residential real estate brokerage platform. | |||
| Mattress Firm (MFRM) | $500M | Consumer Discretionary | Goldman |
| Largest omnichannel mattress specialty retailer in the US. | |||
| Murphy Canyon Acquisition (MURFU) | $150M | SPAC | A.G.P. |
| Blank check company formed by Presidio Property Trust targeting the real estate industry. | |||
| QinHong International (QHI) | $15M | Financials | Benchmark |
| Provides financing and factoring-related services for SMEs in China. | |||
| Signal Hill Acquisition (SGHLU) | $100M | SPAC | B. Riley |
| Blank check company targeting DTC media, tech, and emerging digital enterprise-focused businesses. | |||
| Affinia Therapeutics (AFTX) | $100M | Health Care | Goldman |
| Preclinical biotech developing novel gene therapies for rare diseases and cancer. | |||
| Specialty Bldg. Products (SBP) | $100M | Industrials | Barclays |
| Leading distributor of branded specialty building products in the US. | |||
| Credo Technology Group (CRDO) | $100M | Technology | Goldman |
| Provides semiconductor solutions for optical and electrical Ethernet applications. | |||
| GLA II Meteora Acq. (GLAA.U) | $220M | SPAC | Oppenheimer |
| Blank check company backed by Meteora Capital targeting high-growth businesses. | |||
| HeartCore Enterprises (HTCR) | $15M | Technology | Boustead |
| Provides customer experience management and digital transformation software. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/6/2022, the Renaissance IPO Index was down 10.1% year-to-date, while the S&P 500 was down 1.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 4.9% year-to-date, while the ACWX was down 0.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and EQT Partners.
