The US IPO market reached a 52-week low on Wednesday, measured by the Renaissance IPO Index (tracker for the IPO ETF, NYSE: IPO).
You wouldn't know it by looking at Wednesday's new listings.
Chinese display supplier Ostin Technology Group (OST) priced its $14 million US IPO at $4.00, which opened for trading at $10.10, and closed the day at $39.66 for an eye-popping return of 892% from the offer price, or 293% from the open. It is the year's highest first-day pop. At the offer price, Ostin Technology Group had a market cap of $54 million; it booked $168 million in revenue during the LTM period, with a 10% gross margin and a 3% EBITDA margin.
Surgical implant developer Tenon Medical (TNON) priced its downsized $16 million US IPO at $5.00, which opened for trading at $22.05, and closed the day at $22.50 for a return of 350% from the offer price, or 2% from the open. At the offer price, Tenon had a market cap of $56 million; the company is preparing to launch its implant for sacroiliac joint fixation / fusion surgery. It booked $0.2 million in revenue during the LTM period, with an EBITDA loss of $6.1 million.
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These two names are the IPO market's latest high-flying micro-caps. As we noted in last week in our blog post on "pop-and-drop" IPOs, the new listings with the highest pops have traded down significantly from their first-day closes. As traders were piling into Wednesday's micro-cap IPOs, there were exiting last week's high-flyer JE Cleantech (JCSE), which plummeted 68% on Wednesday. The year's four previous IPOs to pop 300% or more (JCSE, GNS, BWV, TKLF) now average a return of -19% from the offer price, and -85% from the first-day close.
