The long Labor Day weekend is here, which means the summer IPO market has come to an end. Four small issuers began trading this past week, although only two met our tracking criteria. Just two IPOs and one SPAC submitted initial filings.
The most notable news of the week came from the pipeline. Digital ad firm Aleph Group (ALEF) and car sharing platform Turo (TURO), both of which are on file for estimated $300 million IPOs, provided updates during the week and disclosed financials for the 1H22. Meanwhile, yogurt brand Chobani (CHO) withdrew its estimated $1.5 billion IPO.
While this year has been the slowest on record by IPO proceeds thus far, we expect to see a pickup in activity this fall. Read more about it in our Fall 2022 US IPO Preview.
Uplisting from the OTC, Chinese garment maker Addentax Group (ATXG) raised $25 million at a $158 million market cap. On its first day of trading, the company soared more than 13,000% in the largest first-day pop Renaissance Capital has ever recorded. The stock has fallen roughly 99% in the aftermarket, and finished the week up 92%.
Hemp cigarette manufacturer Hempacco (HPCO) raised $6 million at a $138 million market cap. Hempacco’s nicotine-free cigarettes are sold in over 200 retail locations in San Diego. Highly unprofitable, the company plans to expand distribution with a fleet of about 600 vending machines. Hempacco finished down 6%.
While not included below, two unit offerings debuted this past week. Biotech Shuttle Pharmaceuticals (SHPH) raised $10 million at a $57 million market cap, and lung cancer diagnostics developer bioAffinity Technologies (BIAF) raised $8 million at a $54 million market cap.
| 2 IPOs During the Week of August 29th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/02 |
| Addentax Group (ATXG) | $25M | $158M | 0% | +13031% | +92% |
| Manufactures textiles and garments and provides logistics services in China. | |||||
| Hempacco (HPCO) | $6M | $138M | 20% | +30% | -6% |
| Manufactures nicotine-free cigarettes made from hemp. | |||||
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Two IPOs submitted initial filings this past week. Gen Z-focused digital investment education and entertainment services provider Asset Entities (ASST) filed to raise $17 million, and Castellum (CTM), which provides technology services primarily to government agencies, filed to raise $13 million.
The sole SPAC to submit an initial filing this week was DT Cloud Acquisition (DTCAU.RC), led by executives from energy-focused asset manager KX Power, which filed to raise $60 million.
| 3 Filings During the Week of August 29th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Asset Entities (ASST) | $17M | Technology | Boustead |
| Provides Gen Z-focused digital investment education and entertainment services. | |||
| Castellum (CTM) | $13M | Technology | EF Hutton |
| Provides technology services primarily to government agencies. | |||
| DT Cloud Acquisition (DTCAU.RC) | $60M | SPAC | Brookline Cap. Mkts. |
| Blank check company led by executives from energy-focused asset manager KX Power. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/1/2022, the Renaissance IPO Index was down 45.8% year-to-date, while the S&P 500 was down 15.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 36.4% year-to-date, while the ACWX was down 19.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Nongfu Spring.
