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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.
Go Eagles!
Bill Smith
Co-Founder and CEO
Renaissance Capital
Biggest price changes through
Feb 10th
in the
Renaissance IPO Index
|
||
---|---|---|
Top 5 | ||
Oak Street Health | OSH | 32.8% |
AppLovin | APP | 15.7% |
Privia Health Group | PRVA | 4.1% |
agilon health | AGL | 3.6% |
Allegro MicroSystems | ALGM | 2.8% |
Bottom 5 | ||
Affirm Holdings | AFRM | -31.0% |
Coinbase Global | COIN | -23.5% |
GitLab | GTLB | -20.4% |
Doximity | DOCS | -16.8% |
Clear Secure | YOU | -14.6% |
Sectors | ||
Energy | 1.7% | |
Real Estate | 1.5% | |
Health Care | -1.5% | |
Industrials | -2.2% | |
Consumer Staples | -3.3% | |
Technology | -5.8% | |
Consumer Discretionary | -6.3% | |
Financials | -9.0% |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -5.7% last week vs. -1.1% for the S&P 500.