US IPO Weekly Winners & Losers

Despite the groundhog’s prediction, spring appears to have come early in the IPO market.

Four deals raised at least $100 million this week, a 15-month record. Three had double-digit gains (the fourth was a US cross-listing from Israel). Solar equipment firm Nextracker (Nasdaq: NXT) raised $638 million by pricing above the range – a feat accomplished by only 1 large deal last year – and closed Friday +29.2% above offer. Hypertension biotech Mineralys Therapeutics (Nasdaq: MLYS) and Chinese LiDAR play Hesai (Nasdaq: HSAI) rounded out the top performers.

Two micro-caps also priced, with more on the IPO calendar. We’re hearing that the US exchanges still have a somewhat lengthy review process for certain micro-caps. That and subdued first-day trading may be causing delays.

Two SPACs priced offerings (BLACU, PTHRU), bringing the year's total up to four. And for the first time this year, a new SPAC filed IPO paperwork, ESG-focused Keen Vision Acquisition.

Not a lot of traditional IPO filings this week, as companies finish their year-end audits. If returns hold up, we can expect more launches after the Presidents’ Day holiday.

After four weeks of outperformance, the IPO market retreated -5.7% compared to a -1.1% decline in the S&P 500. The IPO Index’s top performer was health care provider Oak Street Health, which shot up +32.8% on news that it would be acquired by CVS, the latest IPO buyout. Consumer lender Affirm trailed this week, down -31.0% after it missed on revenue and earnings.