Three companies priced this past week, two of which are eligible for inclusion in our IPO stats. They were joined by one SPAC.
CAVA Group (CAVA) priced above the upwardly revised range, the first major IPO to do so since late 2021, raising $318 million at a $2.6 billion market cap. CAVA owned and operated 263 CAVA restaurants across 22 states and DC as of 4/16/23 (including conversions of 2018 acquisition Zoes Kitchen), more than twice the locations of its next largest competitor in the Mediterranean category. The company believes its fast-casual concept can support 1,000 locations in the next 10 years, though expansion will become more expensive once all Zoes conversions are complete. CAVA soared 99% in its debut, and while initial enthusiasm dissipated slightly in the aftermarket, it still finished the week up 73%.
Biotech Azitra (AZTR) priced at the midpoint to raise $8 million at a $65 million market cap. The company’s pipeline is led by a genetically modified strain of bacteria targeting orphan disease Netherton syndrome. Azitra’s lead candidate is expected to enter a Phase 1b trial in the 1H23, and the company has a joint development agreement with Bayer to develop bacterial microbes for consumer and cosmetic products. Azitra finished down 1%.
While not included below, snack brand BranchOut Food (BOF) offered slightly more shares and priced at the low end to raise $7 million at a $24 million market cap. Very small and highly unprofitable, the company manufactures and markets plant-based dehydrated foods. BranchOut finished down 26%.
| 3 IPOs During the Week of June 12th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 06/16 |
| CAVA Group (CAVA) | $318M | $2,551M | 22% | +99% | +73% |
| Fast-casual Mediterranean restaurant chain with over 260 locations across the US. | |||||
| ESH Acquisition (ESHAU) | $100M | $128M | 0% | +1% | +1% |
| Blank check company led by industry veterans targeting entertainment, sports, and hospitality. | |||||
| Azitra (AZTR) | $8M | $65M | 0% | -1% | -1% |
| Phase 1-ready dermatology biotech developing engineered bacterial therapies. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Three IPOs submitted initial filings, led by solid tumor biotech Turnstone Biologics (TSBX), which filed to raise $86 million. One blank check IPO also joined the pipeline.
| 4 Filings During the Week of June 12th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| DDC Enterprise (DAYC.RC) | $50M | Technology | CMBI |
| Sells prepared food products and operates a recipe sharing platform in China. | |||
| LQR House (LQR) | $5M | Communication Services | EF Hutton |
| Provides digital marketing and branding services to the alcohol industry. | |||
| Bukit Jalil Global Acq. 1 (BUJAU) | $50M | SPAC | A.G.P. |
| Blank check company led by Malaysian executives targeting emerging growth companies. | |||
| Turnstone Biologics (TSBX) | $86M | Health Care | BofA |
| Phase 1 biotech developing selected TIL therapies for solid tumors. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/15/2023, the Renaissance IPO Index was up 32.8% year-to-date, while the S&P 500 was up 16.2%. 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 down 5.5% year-to-date, while the ACWX was up 11.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
