The IPO market was quiet this past week with no IPOs, though three SPACs priced. Pipeline activity picked up slightly as two IPOs and three SPACs submitted initial filings.
Typically companies wait to set terms until after the long Presidents’ Day weekend, once they have finalized full 2021 financials. However, rising volatility and market turmoil put a damper on post-holiday launches during the week.
Three SPACs came to market: GSR II Meteora Acquisition (GSRMU), which raised $275 million to target high-growth businesses; Clean Earth Acquisition (CLINU), which raised $200 million to target clean and renewable energy; and FG Merger (FGMCU), which raised $70 million to target financial services in North America.
| 3 IPOs During the Week of February 21st, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/25 |
| GSR II Meteora Acq. (GSRMU) | $275M | $344M | 0% | +0% | +0% |
| Blank check company backed by Meteora Capital targeting high-growth businesses. | |||||
| Clean Earth Acquisitions (CLINU) | $200M | $258M | 0% | +0% | +0% |
| Blank check company targeting the clean and renewable energy industry. | |||||
| FG Merger (FGMCU) | $70M | $88M | 0% | +0% | +0% |
| Blank check company targeting the financial services industry in North America. | |||||
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Two IPOs submitted initial filings this past week. Video optimization firm Beemr (BMR) and community bank Hanover Bancorp (HNVR) both filed to raise $35 million.
Three SPACs submitted initial filings. Consumer-focused Haymaker Acquisition IV (HYIVU) filed to raise $261 million, Giant Oak Acquisition (GOSCU) filed to raise $100 million to target middle-market businesses, and Heroic Empire Acquisition (HEAU.RC) filed to raise $75 million, focusing on the biotech and TMT industries.
| 5 Filings During the Week of February 21st, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Heroic Empire Acquisition (HEAU.RC) | $75M | SPAC | EF Hutton |
| Blank check company targeting the biotechnology or TMT industries. | |||
| Haymaker Acquisition IV (HYIVU) | $261M | SPAC | Cantor Fitz. |
| Fourth consumer-focused blank check company led by the former CEO of Starwood Hotels. | |||
| Hanover Bancorp (HNVR) | $35M | Financials | Stephens |
| Community bank with seven branches in New York City and Long Island. | |||
| Beamr (BMR) | $35M | Technology | ThinkEquity |
| Israeli provider of video encoding and image optimization software. | |||
| Giant Oak Acquisition (GOSCU) | $100M | SPAC | Ladenburg |
| Blank check company formed by Chinese executives targeting middle-market growth businesses. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/24/2022, the Renaissance IPO Index was down 23.2% year-to-date, while the S&P 500 was down 9.8%. 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 19.3% year-to-date, while the ACWX was down 8.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
