Four IPOs made it to market this past week, as several small deals delayed (BFRG, INTS, LRE, LSDI). Three companies joined the pipeline, including one filing to raise $100 million.
TXO Energy Partners LP (TXO) led the week’s deals, completing the year’s first energy IPO. The oil and gas MLP priced at the midpoint to raise $100 million at a $600 million market cap. Concentrated in the Permian and San Juan Basins, TXO has targeted a low-growth, high-dividend strategy by focusing on vertically-drilled wells with low decline rates. The company plans to issue a quarterly distribution, though long-term dividends will be highly variable and have no minimum. TXO finished up 10%.
After delaying its offering, Chinese edtech QuantaSing Group (QSG) priced at the midpoint to raise $41 million at a $763 million market cap. QuantaSing states that it is the largest online financial learning service provider for adults in China, with a 37% share of the market by 2021 revenue. The company is unprofitable and saw revenue decline in the 1Q FY23. QuantaSing finished up 1%.
Solid tumor biotech Genelux (GNLX) priced at the low end to raise $15 million at a $142 million market cap, and finished flat. Italian amateur football club operator Brera Holdings (BREA) priced at the low end to raise $8 million at a $57 million market cap, and finished down 4%.
| 4 IPOs During the Week of January 23rd, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/27 |
| TXO Energy Partners (TXO) | $100M | $600M | 0% | +10% | +10% |
| US oil and gas production company in the Permian and San Juan Basins. | |||||
| QuantaSing Group (QSG) | $41M | $763M | 0% | +0% | +1% |
| Provides online financial literacy and personal interest courses for adults in China. | |||||
| Genelux (GNLX) | $15M | $142M | -8% | +3% | +0% |
| Phase 3 biotech developing oncolytic viral immunotherapies for solid tumors. | |||||
| Brera Holdings (BREA) | $8M | $57M | 0% | -4% | -4% |
| Operates amateur football club Brera FC in Milan, Italy. | |||||
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The week’s filing activity was led by Chinese pet hospital chain New Ruipeng Pet Group (RPET), which filed to raise $100 million. Korean social media platform Hanryu Holdings (HRYU) filed to raise $35 million, and private jet charter broker Star Jets International (JETR) filed to raise $12 million.
| 3 Filings During the Week of January 23rd, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Hanryu Holdings (HRYU) | $35M | Technology | Aegis Cap. |
| Provides a social networking platform for fans of South Korean culture. | |||
| New Ruipeng Pet Group (RPET) | $100M | Health Care | Morgan Stanley |
| Operates a network of over 1,900 pet hospitals in China. | |||
| Star Jets International (JETR) | $12M | Industrials | EF Hutton |
| Private jet charter broker. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/26/2023, the Renaissance IPO Index was up 12.9% year-to-date, while the S&P 500 was up 5.8%. 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 up 7.9% year-to-date, while the ACWX was up 8.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
