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How late into January can you still wish someone a happy new year?
With the IPO market up +9.7% this week, I think we can keep saying it. Inflation has pulled back somewhat, and IPOs strongly outperformed the S&P 500 (+2.7%). Crypto exchange Coinbase led the way with a +50.3% gain, thanks to higher Bitcoin prices and cost-cutting measures. Narcolepsy biotech Harmony Biosciences was the week’s IPO loser, off -11.6% after the departure of its CEO.
It’s a great start to 2023, and I expect a few IPO candidates called up their bankers to discuss timing. However, we’ll hold off on celebrations, given the Fed’s recent history of cutting rallies short.
Niche insurer Skyward Specialty (Nasdaq: SKWD) raised $134 million in the biggest IPO since October and traded up +27.3%, which puts it in-line with our comp group on 2023 P/E. Its first-day pop is among the best for insurance IPOs over the past five years. Lionel Messi’s micro-cap clothing brand MGO Global (Nasdaq: MGOL) also listed on Friday.
One notable S-1 hit this past week: Sequoia-backed biotech Structure Therapeutics filed to raise $100 million. News also broke that one of the largest IPOs on file, Vietnam’s VinFast Auto, now targets a Nasdaq listing in Q2.
One SPAC IPO priced, Israel Acquisitions (Nasdaq: ISRLU), the biggest in three months. No major mergers, but USCT raised eyebrows when it announced a plan to acquire publicly-traded Wejo, which already listed via a different SPAC merger in 2021. The transaction conjures up Russian dolls.
US exchanges are closed on Monday for MLK Jr. Day, so the IPO calendar only has a handful of micro-caps for now. We should see more decent-sized deals in the coming weeks.
Take care,
Bill Smith
Co-Founder and CEO
Renaissance Capital
Biggest price changes through
Jan 13th
in the
Renaissance IPO Index
|
||
---|---|---|
Top 5 | ||
Coinbase Global | COIN | 50.3% |
Affirm Holdings | AFRM | 42.2% |
Oak Street Health | OSH | 38.8% |
agilon health | AGL | 28.8% |
Lufax Holding | LU | 26.9% |
Bottom 5 | ||
Harmony Biosciences Holdings | HRMY | -11.6% |
Vaxcyte | PCVX | -4.4% |
GFL Environmental | GFL | -4.0% |
Xpeng | XPEV | -1.2% |
ZIM Integrated Shipping Services | ZIM | -0.7% |
Sectors | ||
Financials | 16.6% | |
Energy | 11.4% | |
Technology | 11.0% | |
Real Estate | 10.4% | |
Health Care | 8.2% | |
Consumer Discretionary | 6.0% | |
Consumer Staples | 4.8% | |
Industrials | 4.2% |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned 9.7% last week vs. 2.7% for the S&P 500.