The IPO market's run of small issuers continued this past week with two healthcare micro-caps, joined by five SPACs. The pipeline was fairly active with initial filings from three IPOs and two SPACs.
Meihua International Medical Technologies (MHUA) downsized and priced at the midpoint to raise $36 million at a $236 million market cap. The first China-based issuer to IPO in the US in months, Meihua provides disposable medical devices to hospitals, pharmacies, medical institutions, and medical equipment companies primarily in China. The company is profitable and growing, though it is affected by China’s tightening regulatory environment. Meihua finished down 18%.
Biotech Blue Water Vaccines (BWV) priced at the midpoint to raise $20 million at a $105 million market cap. Blue Water is focused on the research and development of transformational vaccines to prevent infectious diseases worldwide. Its lead program, BWV-101, is licensed from the University of Oxford and is being developed as a transformational novel universal influenza vaccine. Blue Water was the latest small issuer to soar in its debut, finishing up 538%.
Five SPACs went public led by media and entertainment-focused PowerUp Acquisition (PWUPU), which raised $250 million.
| 7 IPOs During the Week of February 14th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/18 |
| Blue Water Vaccines (BWV) | $20M | $105M | 0% | +538% | +538% |
| Preclinical biotech developing vaccines for the flu and other infectious diseases. | |||||
| A SPAC I Acquisition (ASCAU) | $60M | $75M | 0% | +0% | +0% |
| Blank check company targeting the TMT sector in the US and Asia. | |||||
| FutureTech II Acq. (FTIIU) | $100M | $130M | 0% | +0% | +0% |
| Blank check company targeting the disruptive technology sector in the US. | |||||
| PowerUp Acquisition (PWUPU) | $250M | $313M | 0% | +0% | +0% |
| Blank check company targeting media and entertainment businesses. | |||||
| AXIOS Sustainable Growth (AXACU) | $150M | $191M | 0% | +0% | +0% |
| Blank check company targeting agriculture-related technology firms in Central and Eastern Europe. | |||||
| Genesis Unicorn Capital (GENQU) | $75M | $97M | 0% | +0% | +0% |
| Blank check company targeting the biotech and pharmaceutical sectors. | |||||
| Meihua International (MHUA) | $36M | $236M | 0% | +29% | -18% |
| Chinese manufacturer of disposable medical products. | |||||
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Three IPOs submitted initial filings. Alternative asset manager The Gladstone Companies (GC) filed to raise $50 million. Neural input tech developer Wearable Devices (WLDS) filed to raise $18 million, and OTC-listed medical device developer Marizyme (MRZM) filed to raise $17 million.
For SPACs, Guggenheim-backed Silver Sustainable Solutions (SSSCU) filed to raise $250 million, and decarbonization-focused Resources Acquisition (RAFU) filed to raise $150 million.
| 5 Filings During the Week of February 14th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| The Gladstone Companies (GC) | $50M | Financials | EF Hutton |
| Independent alternative asset management firm. | |||
| Wearable Devices (WLDS) | $18M | Consumer Discretionary | Aegis Cap. |
| Developing non-invasive neural input technology for consumer electronics. | |||
| Silver Sustainable Sol. (SSSCU) | $250M | SPAC | Guggenheim |
| Blank check company backed by Guggenheim Partners targeting clean economy technologies. | |||
| Resources Acquisition (RAFU) | $150M | SPAC | Citi |
| Blank check company targeting the electrification and decarbonization value chains. | |||
| Marizyme (MRZM) | $17M | Health Care | Univest Sec. |
| Developing a portfolio of medical devices for cardiac surgery, CKD, and pet health. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/17/2022, the Renaissance IPO Index was down 20.7% year-to-date, while the S&P 500 was down 7.9%. 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 10.8% year-to-date, while the ACWX was down 1.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
