Three IPOs raised $330 million this past week, led by energy play ProFrac Holding (PFHC), which delayed its pricing by a day. The fracking services provider was joined by a bank and an IoT networking solutions micro-cap, as well as four SPACs.
ProFrac priced well below the range to raise $288 million at a $2.5 billion market cap. Operating in the solidly-performing energy sector, ProFrac believes it is the largest privately owned provider of hydraulic fracturing services in North America by hydraulic horsepower. There are several related party transactions and connections with the founding Wilks family, who indicated on 41% of shares in the offering. ProFrac finished up 1%.
New York bank Hanover Bancorp (HNVR) downsized slightly and priced at the low end to raise $27 million at a $153 million market cap. Hanover primarily serves small and medium-sized customers through eight branches, concentrated in the NYC area. As of 12/31/21, the bank had total assets of $1.5 billion, total deposits of $1.2 billion, and total stockholders' equity of $129 million. Hanover finished up 3%.
Actelis Networks (ASNS), which provides hybrid fiber-copper equipment solutions to telecom and IoT networks, priced at the low end to raise $15 million at a $69 million market cap. The micro-cap finished down 40%.
Four SPACs also priced, led by Investcorp India Acquisition (IVCAU), which raised $225 million to target opportunities in India. The SPAC market has continued to crumble in 2022, with terminations on the rise amid poor de-SPAC trading. Withdrawals are also expected to continue as underwriters retreat from the space due to changing regulations.
| 7 IPOs During the Week of May 9th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/13 |
| Hanover Bancorp (HNVR) | $27M | $153M | -5% | +0% | +3% |
| Community bank with eight branches in New York and New Jersey. | |||||
| ProFrac (PFHC) | $288M | $2,524M | -20% | +1% | +1% |
| Provides hydraulic fracturing and completion services to upstream E&Ps in North America. | |||||
| Investcorp India Acq. (IVCAU) | $225M | $281M | 0% | +0% | +0% |
| Blank check company formed by Investcorp Group targeting businesses in India. | |||||
| Monterey Capital Acq. (MCACU) | $80M | $101M | 0% | n/a | +0% |
| Blank check company targeting the clean energy transition space. | |||||
| Global Blockchain Acq. (GBBKU) | $150M | $191M | 0% | +0% | +0% |
| Blank check company led by execs at Global Blockchain Ventures targeting blockchain tech firms. | |||||
| Prime Number Acquisition (PNACU) | $60M | $79M | 0% | -1% | -1% |
| Blank check company formed by Dongfeng Wang targeting tech-enabled financial companies. | |||||
| Actelis Networks (ASNS) | $15M | $69M | -20% | -40% | -40% |
| Provides hybrid fiber-copper equipment solutions to telecom and IoT networks. | |||||
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| 2 Filings During the Week of May 9th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Metaverse Acquisition (METAU.RC) | $150M | SPAC | I-Bankers |
| Blank check company targeting the metaverse arena in North America, Europe, and Asia. | |||
| CE Energy Acquisition (CEACU) | $100M | SPAC | Maxim |
| Blank check company targeting the energy industry in the Americas. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/12/2022, the Renaissance IPO Index was down 50.8% year-to-date, while the S&P 500 was down 17.1%. 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 35.1% year-to-date, while the ACWX was down 17.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
