Traditional IPOs were a no-show again this past week, though four SPACs were willing to brave current market conditions, raising a combined $725 million. The pipeline saw some activity, with three IPOs and two SPACs submitting initial filings.
While the calendar and pipeline were exceptionally quiet in February, and signs point to a slow March, companies are still indicating plans to go public later this year. Two private companies reportedly submitted confidential filings this past week, and new issuers already in the pipeline are likely eyeing the second quarter as they wait out repercussions of the war in Europe.
The week’s SPAC lineup was led by alternative asset manager Sound Point’s Sound Point Acquisition I (SPCMU), which upsized to raise $225 million to target the credit markets. Automotive-focused Kensington Capital Acquisition IV (KCAC.U) and life sciences and sustainability-focused Valuence Merger I (VMCAU) both raised $200 million. SHUAA Partners Acquisition I (SHUAU) raised $100 million to target tech and fintech in the MENAT region.
| 4 IPOs During the Week of February 28th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 03/04 |
| Sound Point Acquisition I (SPCMU) | $225M | $281M | 0% | n/a | +1% |
| Blank check company formed by Sound Point targeting the credit markets. | |||||
| SHUAA Partners Acq. I (SHUAU) | $100M | $125M | 0% | n/a | +0% |
| Blank check company formed by SHUAA Capital targeting tech and fintech in the Middle East, North Africa, and Turkey. | |||||
| Valuence Merger I (VMCAU) | $200M | $250M | 0% | +0% | +0% |
| Blank check company targeting life sciences and sustainability. | |||||
| Kensington Capital Acq IV (KCAC.U) | $200M | $286M | 0% | +0% | -1% |
| Blank check company led by the founder of Kensington Capital targeting the auto industry. | |||||
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Three IPOs submitted initial filings. Lung disease biotech AN2 Therapeutics (ANTX) filed to raise $75 million, Canada-based Visionary Education Technology Holdings Group (VEDU) filed to raise $23 million, and ocular disease biotech OKYO Pharma (OKYO) filed to raise $12 million.
Two SPACs submitted initial filings. Energy-focused Makara Strategic Acquisition (MKARU) filed to raise $250 million, and US Tiger Securities CEO-led Denali Capital Acquisition (DECAU) filed to raise $75 million.
| 5 Filings During the Week of February 28th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| AN2 Therapeutics (ANTX) | $75M | Health Care | Cowen |
| Phase 2/3-ready biotech developing an in-licensed therapy for NTM lung disease. | |||
| OKYO Pharma (OKYO) | $12M | Health Care | ThinkEquity |
| Preclinical biotech developing a lipidated chemerin analog for dry eye disease. | |||
| Visionary Education Group (VEDU) | $23M | Consumer Discretionary | Joseph Stone |
| Provides secondary and post-secondary education services in Canada. | |||
| Denali Capital Acq. (DECAU) | $75M | SPAC | Tiger Brokers |
| Fourth blank check company formed by the CEO of US Tiger Securities. | |||
| Makara Strategic Acq. (MKARU) | $250M | SPAC | EF Hutton |
| Blank check company targeting natural resources, clean energy, or energy storage sectors. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/3/2022, the Renaissance IPO Index was down 26.5% year-to-date, while the S&P 500 was down 8.2%. 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 21.8% year-to-date, while the ACWX was down 7.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
