Challenging conditions in the IPO market continued this past week. The two major deals on the calendar postponed, and the remaining micro-caps pushed back their debuts by a week. Seven SPACs completed offerings, and three IPOs and four SPACs submitted initial filings.
Four Springs Capital Trust (FSPR) postponed its $252 million IPO, which was set to be the largest deal of the week. The REIT previously attempted to go public in 2017, and had expanded its portfolio since then. Bitcoin miner Rhodium Enterprises (RHDM) postponed its $100 million IPO as Bitcoin prices continue to drop.
Seven SPACs went public this past week led by Hondius Capital’s HCM Acquisition (HCMAU), which raised $250 million to target the fintech sector.
While not included below, Japan-based Yoshitsu (TKLF) began trading after initially pricing its IPO earlier this month. The retailer became the latest micro-cap to soar on its debut, gaining 700% on its first day; it finished the week up 638%.
| 7 IPOs During the Week of January 17th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/21 |
| Heartland Media Acq. (HMA.U) | $175M | $219M | 0% | +0% | +0% |
| Blank check company formed by Heartland Media targeting media, entertainment, and sports. | |||||
| AIB Acquisition (AIBBU) | $75M | $98M | 0% | n/a | +0% |
| Blank check company led by the CEO of American International Bank targeting fintech. | |||||
| HCM Acquisition (HCMAU) | $250M | $313M | 0% | +0% | +0% |
| Blank check company formed by Hondius Capital Management targeting fintech. | |||||
| Banyan Acquisition (BYN.U) | $210M | $273M | 0% | +0% | +0% |
| Blank check company led by the Chairman of TriMark USA targeting the foodservice industry. | |||||
| DUET Acquisition (DUETU) | $75M | $98M | 0% | +0% | +0% |
| Blank check company targeting technology businesses in the APAC region. | |||||
| KnightSwan Acquisition (KNSW.U) | $200M | $250M | 0% | -1% | -1% |
| Blank check company tech-enabled solutions with applications in government and commercial markets. | |||||
| Generation Asia I Acq. (GAQ.U) | $200M | $270M | 0% | -1% | -1% |
| Blank check company targeting the TMT, business services, or consumer sectors in Asia. | |||||
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Three IPOs submitted initial filings. RIA services platform Dynasty Financial Partners (DSTY) filed to raise $100 million, Chinese insurance firm Hengguang Holding (HGIA) filed to raise $20 million, and Chinese micro-cap Erayak Power Solution Group (RAYA) filed to raise $15 million.
Four SPACs submitted initial filings. Auto-focused Kensington Capital Acquisition IV (KCAC.U), Intrepid Potash’s Intrepid Acquisition I (IACIU), and life sciences and sustainability-focused Valuence Merger I (VMCAU) all filed to raise $200 million.
| 7 Filings During the Week of January 17th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Erayak Power (RAYA) | $15M | Industrials | Prime Num. Cap. |
| Chinese manufacturer of power solution products for vehicles and appliances. | |||
| FG Merger (FGMGU.RC) | $70M | SPAC | ThinkEquity |
| Blank check company targeting the financial services industry in North America. | |||
| Kensington Capital Acq IV (KCAC.U) | $200M | SPAC | UBS |
| Blank check company led by the founder of Kensington Capital targeting the auto industry. | |||
| Dynasty Financial (DSTY) | $100M | Financials | Goldman |
| Provides business services and an investment management platform to RIAs. | |||
| Intrepid Acquisition I (IACIU) | $200M | SPAC | Cowen |
| Blank check company formed by Intrepid Potash targeting energy, natural resources, and infrastructure. | |||
| Valuence Merger I (VMCAU) | $200M | SPAC | SVB Leerink |
| Blank check company targeting life sciences and sustainability. | |||
| Hengguang Holding (HGIA) | $20M | Financials | Network 1 |
| Distributes property & casualty and life & health insurance products in China. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/20/2022, the Renaissance IPO Index was down 19.0% year-to-date, while the S&P 500 was down 5.9%. 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 3.9% 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 Kuaishou.
