Watch for an uptrend, but approach with caution.
That’s the main takeaway this week, as the US IPO market followed its recent rally with five down days. IPOs backtracked -9.0%, compared to -1.2% for the S&P 500. For now, we maintain our view that we’ll see some major deals in the Fall. Possible billion-dollar IPOs include Corebridge Financial, Clarios, Instacart, and Arm.
Until then, micro-caps continue to roll in, as three small IPOs began trading in the US this week. One added warrants so it's not on our Priced IPOs page, and the other two are based in China. Half of Q3 IPOs are Chinese, which have seen especially volatile trading.
Waste management platform Rubicon Technologies (Nasdaq: RBT) listed via SPAC this week, but closed Friday well below the $10 redemption price at $5.52. Coming up, we’re tracking two billion-dollar coffee companies that plan to list via SPAC this month: Tim Hortons China and Westrock Coffee.
Billing automation platform Bill.com was the week’s IPO winner, up +10.6% on strong growth in the latest quarter. App monetization platform AppLovin shed -25.9% as its bid to acquire Unity Software was rejected.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
Aug 19th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Bill.com | BILL | 10.6% |
| Nu Holdings | NU | 9.4% |
| XP | XP | 3.5% |
| Albertsons Companies | ACI | 2.5% |
| Change Healthcare | CHNG | 0.7% |
| Bottom 5 | ||
| AppLovin | APP | -25.9% |
| 10x Genomics | TXG | -24.7% |
| Asana | ASAN | -22.8% |
| Affirm Holdings | AFRM | -21.1% |
| Unity Software | U | -18.5% |
| Sectors | ||
| Consumer Staples | -0.4% | |
| Industrials | -3.4% | |
| Real Estate | -6.3% | |
| Financials | -6.4% | |
| Consumer Discretionary | -8.9% | |
| Health Care | -9.1% | |
| Technology | -9.4% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -9.0% last week vs. -1.2% for the S&P 500.
