US IPO Weekly Winners & Losers

And here are the IPOs.

Three deals launched roadshows this week, and each expect to raise close to $300 million at market caps of $2-$3 billion. They list on the NYSE on Thursday.

It’s yet another sign that the IPO drought could be ending. In the past 18 months, only one other week had three US IPOs raise $100+ million. Lined up for the week ahead:

• Gas compressor Kodiak Gas Services (NYSE: KGS)

• Specialty insurer Fidelis Insurance (NYSE: FIHL)

• Thrift store operator Savers Value Village (NYSE: SVV)

Each of is backed by private equity. As you might expect, they’re not the year’s first IPOs from the energy, insurance, and retail industries. But if these do well, expect to see more sectors in the coming months.

KGS and SVV will be the IPO market's first LBOs in 20 months. Steadying interest rates played a part. Higher rates not only lower the value of tech unicorns since their cash flows are in the distant future, but also eat into the earnings of PE-backed LBOs making higher interest payments. And for companies with a lot of debt, small changes to peer multiples can have a big impact on equity values.

Three sizable deals joined the public pipeline this week, with filings from beauty brand Oddity (Nasdaq: ODD), along with two biotechs (SGMT, APGE). SPAC filings have slowed, making the S-1 from Nabors Industries' NETDU notable. And this week SPAC BYN announced a merger with bowling operator Pinstripes, chasing the success of Bowlero.

The IPO market traded down -4.6% this week amid a pullback in tech, vs. -1.4% for the S&P 500. Medical lab services provider Sotera Health was the IPO Index’s winner, up +19.8% after finalizing a legal settlement that hung over it for years. Some high-flying AI stocks traded off this week, though Chinese jobs platform Kanzhun landed in last, off -14.4%.