The IPO market gave up much of its recent gains, off -6.7% compared to -0.7% for the S&P 500. Strong US retail sales give the Fed the green light to continue raising rates (bad for growth stocks), while an inverted yield curve points to a recession. Also, the inflation numbers behind the prior week's rally were good, but not that good.
Reading through the noise, I think there’s a lot to like about the long-term strength of the US economy, but we’ll see some pain for a few quarters.
On Monday our Director of Research and IPO Strategist both spoke at ICR’s virtual IPO Summit on “Navigating the 2023 IPO Landscape.” If you register you can watch the replay.
This week’s sole IPO was biotech Acrivon Therapeutics (Nasdaq: ACRV), a holdover from last week. It priced well below the midpoint, going below its last private round. In an unusual move it removed the lead underwriter at pricing, while existing shareholders took down 88% of the deal. With that help, the stock climbed +26.2% from offer.
Companies have only a couple more days to file their S-1’s and still squeeze in a 2022 IPO. Three decent-sized filings hit this past week: two from dividend-paying oil and gas producers (TXO, BKV), and one from a specialty insurer (SKWD). A third energy/dividend play (BNTY) filed in the prior week.
A whopping 8 companies announced SPAC mergers, all valued at less than $1 billion. As a reminder, hundreds of SPACs are scrambling to close deals ahead of liquidation deadlines. Dating app Grindr (NYSE: GRND) completed its SPAC listing, valued at more than $2 billion. Its 200% gain on Friday grabbed headlines, but that can happen with a low tradable float, since public investors redeemed 98.2% of shares.
Fintech had a rough week, and cross-border payments firm dLocal was the week’s IPO loser, off -44.2% after a short seller report. Solar equipment maker Shoals Technologies took the top spot, up +33.9% after strong Q3 earnings.
I’ll be skipping next week’s newsletter to enjoy Thanksgiving with family.
Talk again in two weeks,
Bill Smith
Co-Founder and CEO
Renaissance Capital
|
Biggest price changes through
Nov 18th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Shoals Technologies Group | SHLS | 33.9% |
| Clear Secure | YOU | 16.9% |
| Full Truck Alliance | YMM | 13.0% |
| Ryan Specialty Holdings | RYAN | 9.9% |
| KE Holdings | BEKE | 9.5% |
| Bottom 5 | ||
| dLocal | DLO | -44.2% |
| Coinbase Global | COIN | -21.2% |
| Affirm Holdings | AFRM | -20.6% |
| ZoomInfo Technologies | ZI | -18.3% |
| Sotera Health | SHC | -17.9% |
| Sectors | ||
| Real Estate | 9.5% | |
| Consumer Staples | 0.7% | |
| Industrials | 0.5% | |
| Health Care | -5.0% | |
| Consumer Discretionary | -6.2% | |
| Technology | -7.4% | |
| Financials | -9.9% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -6.7% last week vs. -0.7% for the S&P 500.
