Two IPOs and one SPAC began trading this past week, as several small deals delayed (NFTG, NRXS, LRE). Three IPOs submitted initial filings, led by an energy play planning to raise $100+ million.
The 2023 IPO market is off to a strong start. A handful of large deals were able to get done in January, and a wave of sizable names entered the pipeline. We highlight this and more in our January IPO market update. After a muted start, the SPAC market showed some life this past week, as L Catterton Asia Acquisition (LCAA) struck a deal to merge with UK-based luxury car maker Lotus Technology at a $5.4 billion enterprise value.
Chronic disease biotech Structure Therapeutics (GPCR) priced its upsized IPO at the high end to raise $161 million at a $575 million market cap. Leveraging its expertise in G-protein-coupled receptors and protein visualization techniques, the biotech's lead candidate is being advanced for type-2 diabetes mellitus and obesity. The company plans to initiate and report topline data for a Phase 2a proof-of-concept study in the 2H23. Structure Therapeutics finished up 73% in the best first-day performance for a US company since 2021, excluding micro-caps.
Asset Entities (ASST), a provider of investment education and entertainment services, raised $8 million at a $61 million market cap. Small and highly unprofitable, the company provides social media marketing, and manages Discord communities. Asset Entities finished down 29%.
The sole SPAC to price, Cetus Capital Acquisition (CETUU) raised $50 million to target industrials, technology, and IoT industries in Taiwan. Cetus Capital Acquisition is only the second blank check to price so far in 2023.
| 3 IPOs During the Week of January 30th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/03 |
| Structure Therapeutics (GPCR) | $161M | $575M | 7% | +73% | +73% |
| Phase 1 biotech developing G-protein-coupled receptors for chronic diseases. | |||||
| Cetus Capital Acquisition (CETUU) | $50M | $66M | 0% | +2% | +2% |
| Blank check company targeting the industrials, tech, and IoT industries in Taiwan. | |||||
| Asset Entities (ASST) | $8M | $61M | 0% | -29% | -29% |
| Provides Gen Z-focused digital investment education and entertainment services. | |||||
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Three IPOs submitted initial filings this past week. Frac sand miner and transporter Atlas Energy Solutions (AESI) filed to raise an estimated $200 million. E-cigarette and cannabis vaping product brand Ispire Technology (ISPR) filed to raise $42 million. Singapore-based interior designer FBS Global (FBGL) filed to raise $15 million.
| 3 Filings During the Week of January 30th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Atlas Energy Solutions (AESI) | $200M | Energy | Goldman |
| Mines and transports frac sand for the oil and gas industry. | |||
| FBS Global (FBGL) | $15M | Industrials | Pacific Century Securities |
| Provides interior design and fit-out services in Singapore. | |||
| Ispire Technology (ISPR) | $42M | Consumer Staples | Tiger Brokers |
| US-based e-cigarette and cannabis vaping product brand. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/2/2023, the Renaissance IPO Index was up 25.2% year-to-date, while the S&P 500 was up 9.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was up 9.5% year-to-date, while the ACWX was up 9.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
