Our new Annual Review is titled The IPO Market Flips from Boom to Bust in 2022.
The research team analyzed IPO performance, VC and PE activity, the largest offerings, and did a deep-dive into the SPAC market. The full report has our 71-IPO deal list, along with our take on the year ahead, and 37 names that could brave the IPO market in 2023.
2022 raised the least IPO proceeds in over 30 years. The press may translate that as the “worst” IPO market in 30 years, but it is not the worst time to be an investor in new stocks. Our analysis shows just the opposite. Now is typically when you find strong companies at attractive prices. In fact, 2022 listings that raised at least $100 million average a +18.1% return from offer (+5.2% from day-one close).
This week, nano-cap Erayak Power (Nasdaq: RAYA) became the first Nasdaq listing of a low-float Chinese issuer since the exchange beefed up its review process due to “pop-and-drop” deals. It stumbled out of the gate, and finished the week off -45%. A few micro-caps will try once more to price in the week ahead.
No new filings this past week as we approach the holidays. Three larger companies updated financials, a sign of possible January IPOs: battery maker Clarios, auto sharing platform Turo, and storage REIT SmartStop Self Storage.
Three SPAC mergers listed this week, a Chinese luxury fashion brand (LANV), a Chinese algorithm services firm (MLGO), and a biotech (ZVSA). Another 9 SPACs announced mergers, the largest of which were a nat-gas tech developer (RONI) and a Canadian oil sands play (MBSC). Parking lot REIT Mobile Infrastructure had been on the IPO path, but this week opted for a SPAC merger with FWAC.
10 SPACs liquidated this week, returning more than $2.5 billion to shareholders. More SPACs have liquidated this quarter than the past five years combined. And more are coming in Q1.
The broader market had another challenging week. The IPO Index slipped -4.1%, closing in on its YTD low, compared to -2.1% for the S&P 500. Solar equipment play Shoals Technologies was the winner with a +12.2% gain, while EV developer Rivian finished last, off -17.6%.
Take care,
Bill Smith
Co-Founder and CEO
Renaissance Capital
|
Biggest price changes through
Dec 16th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Shoals Technologies Group | SHLS | 12.2% |
| monday.com | MNDY | 11.7% |
| Maravai LifeSciences | MRVI | 11.4% |
| GitLab | GTLB | 7.3% |
| Duolingo | DUOL | 6.3% |
| Bottom 5 | ||
| Rivian Automotive | RIVN | -17.6% |
| Unity Software | U | -14.6% |
| Lufax Holding | LU | -13.0% |
| Roblox | RBLX | -12.7% |
| Coupang | CPNG | -10.8% |
| Sectors | ||
| Health Care | -0.2% | |
| Industrials | -0.9% | |
| Technology | -2.1% | |
| Consumer Staples | -2.6% | |
| Financials | -5.3% | |
| Real Estate | -6.0% | |
| Consumer Discretionary | -7.0% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -4.1% last week vs. -2.1% for the S&P 500.
