Three IPOs and one SPAC began trading this past week, though neither of the scheduled biotechs made it to market as Intensity Therapeutics (INTS) postponed and Acrivon Therapeutics (ACRV) delayed its pricing. One IPO and two SPACs submitted initial filings.
In the pipeline, large IPOs KinderCare Learning Companies (KLC), Savers Value Village (SVV), and MN8 Energy (MNX) all filed updates during the week, an indicator that we could still see another major IPO before year-end.
Chinese hotel chain Atour Lifestyle Holdings (ATAT) priced at the low end to raise $52 million at a $1.5 billion market cap. The company franchises and manages a portfolio of upper midscale hotels aimed at young, affluent consumers. It has remained profitable despite COVID-related headwinds in China, which have been and are expected to remain unpredictable. Atour Lifestyle finished the week up 17%.
Online game developer and publisher Snail (SNAL) priced at the midpoint of the downwardly revised range to raise $15 million at a $190 million market cap. The company derives most of its revenue from its flagship franchise, ARK: Survival Evolved, and a lack of new game launches has caused revenue and margins to decline. Snail finished the week down 40%.
ASP Isotopes (ASPI), which is developing isotope enrichment facilities, downsized and priced at the low end of the downwardly revised range to raise $5 million at a $131 million market cap. The pre-revenue company finished down 30%.
The sole SPAC to price, Plutonian Acquisition (PLTNU) raised $50 million to target metaverse tech, tourism, and e-commerce in the Asia-Pacific region.
| 4 IPOs During the Week of November 7th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 11/11 |
| Atour Lifestyle Holdings (ATAT) | $52M | $1,487M | -24% | +17% | +17% |
| Upper midscale hotel chain in China. | |||||
| Plutonian Acquisition (PLTNU) | $50M | $65M | 0% | +0% | +0% |
| Blank check company targeting metaverse tech, tourism, and e-commerce in the APAC region. | |||||
| ASP Isotopes (ASPI) | $5M | $131M | -33% | -33% | -30% |
| Developing isotope enrichment facilities for medical and energy applications. | |||||
| Snail (SNAL) | $15M | $190M | -17% | -55% | -40% |
| Developer and publisher of online multiplayer games for various platforms. | |||||
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One IPO and two SPACs submitted initial filings this past week. Bounty Minerals (BNTY), which owns natural gas interests in the Appalachian Basin, filed to raise $100 million. Pono Capital Three (PTHRU) filed to raise $100 million to target disruptive tech in Japan, and Alkaid Acquisition (ALKDU) filed to raise $50 million to target IoT, smart manufacturing, and renewable energy.
| 3 Filings During the Week of November 7th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Alkaid Acquisition (ALKDU) | $50M | SPAC | Chardan |
| Blank check company targeting IoT, smart manufacturing, and renewable energy. | |||
| Pono Capital Three (PTHRU) | $100M | SPAC | EF Hutton |
| Blank check company targeting the disruptive technology sector in Japan. | |||
| Bounty Minerals (BNTY) | $100M | Energy | Raymond James |
| Owns natural gas mineral interests in the Appalachian Basin. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/10/2022, the Renaissance IPO Index was down 53.2% 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 42.6% year-to-date, while the ACWX was down 19.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include EQT and Nongfu Spring.
