The 1Q22 IPO market ended with another quiet week. Just two SPACs priced.
The most notable news came from the IPO pipeline. Four IPOs and two direct listings submitted initial filings, led by AIG carve-out SAFG Retirement Services (SAFG), which could raise up to $3 billion. Four issuers also refreshed their filings with updated financials, including billion-dollar deal Bausch + Lomb (BLCO).
For more on activity during the past quarter and outlook going forward, read Renaissance Capital’s 1Q22 US IPO Market Review.
The week’s only pricings came from energy SPAC Redwood Acquisition (RWODU) and growth-focused SPAC Metal Sky Star Acquisition (MSSAU), both of which raised $100 million.
While not counted below, two other deals came to market: Railway safety micro-cap Rail Vision (RVSN) raised $16 million in a warrants-attached IPO, and nano-cap Expion360 (XPON) raised $15 million at a market cap less than Renaissance Capital’s $50 million cutoff.
| 2 IPOs During the Week of March 28th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 04/01 |
| Redwoods Acquisition (RWODU) | $100M | $130M | 0% | +0% | +1% |
| Blank check company targeting the carbon neutral and energy storage sectors. | |||||
| Metal Sky Star Acq. (MSSAU) | $100M | $128M | 0% | +0% | +0% |
| Blank check company targeting middle-market growth businesses. | |||||
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The pipeline saw some activity during the week. SAFG (Corebridge) (SAFG) filed for an estimated $3 billion IPO. Chinese IoT solutions provider Wuxin Technology Holdings (WXT) filed to raise $41 million, early-stage alfalfa producer African Agriculture (AAGR) filed to raise $40 million, and facilities services provider Primech Holdings (PMEC) filed to raise $23 million. Healthcare-focused Strawberry Fields REIT (STRW) and federally-authorized cannabis provider Bright Green (BGXX) both filed to direct list on the Nasdaq.
Two SPACs also submitted initial filings. A SPAC II Acquisition (ASCBU) filed to raise $185 million to target new economy sectors, and Chenghe Acquisition (CHEA.U) filed to raise $100 million to target fintech in Asia.
| 8 Filings During the Week of March 28th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Chenghe Acquisition (CHEA.U) | $100M | SPAC | Morgan Stanley |
| Blank check company targeting fintech in Asia. | |||
| African Agriculture (AAGR) | $40M | Consumer Staples | Spartan Securities |
| US-based alfalfa producer operating in Senegal. | |||
| Primech Holdings (PMEC) | $23M | Industrials | Tiger Brokers |
| Provides cleaning and maintenance services to facilities in Singapore and Malaysia. | |||
| Bright Green (BGXX) | n/aM | Health Care | |
| Federally-authorized provider of cannabis products for research applications. | |||
| Wuxin Technology Holdings (WXT) | $41M | Technology | Prime Num. Cap. |
| Develops and sells IoT connectivity components in China. | |||
| A SPAC II Acquisition (ASCBU) | $185M | SPAC | Maxim |
| Blank check company targeting new economy sectors in North America, Europe, and Asia. | |||
| SAFG (Corebridge) (CRBG) | $3,000M | Financials | JP Morgan |
| Carve-out of AIG's retirement services and life insurance business. | |||
| Strawberry Fields REIT (STRW) | $14M | Real Estate | |
| Triple net lease REIT with a portfolio of healthcare properties. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/31/2022, the Renaissance IPO Index was down 23.9% year-to-date, while the S&P 500 was down 4.6%. 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 21.9% year-to-date, while the ACWX was down 5.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
