The 2024 IPO market is about to bag its biggest deal yet.
REIT Lineage (Nasdaq: LINE) is slated to raise $3.6 billion in the week ahead, more than double the proceeds of the next largest US IPO year to date (Viking). The founder-owned company boasts the world’s broadest network of temperature-controlled warehouses and serves some of the biggest names in the food industry. The IPO will help pay down its massive debt.
Three other notable deals are also on tap for next week, featuring a mix of tech, healthcare, and transportation.
KKR-backed financial software seller OneStream (Nasdaq: OS) will be the latest test for the dormant enterprise software space. While IPO investors have been wary of money-losing companies, OneStream is close to breakeven, and grew almost 40% in Q1.
Carve-outs and cross-listings have been common themes, and next week Select Medical will list its occupational health services unit Concentra (NYSE: CON), as restructured Latin American airline LATAM Group (NYSE: LTM) cross-lists from Chile.
While we expect solid activity in the fall, for many pre-IPO tech startups, 2025 is the new 2024. The latest evidence came this week when news broke that fintech unicorn Klarna now targets an IPO early next year.
The past week’s sizable IPOs did alright. Insurance broker TWFG (Nasdaq: TWFG) priced above the range and jumped +30%. Hospital operator Ardent Health (NYSE: ARDT) priced a downsized offering $4 below the range and broke issue, but closed Friday with an +8% gain. Autoimmune biotech Artiva Biotherapeutics (Nasdaq: ARTV) priced down and traded flat.
The IPO Index fell -1.3% this week, slightly less than the S&P 500’s -2.0% loss, as tech stocks retreated on news of a potential US crackdown on Chinese chipmakers. Private equity firm TPG was the winner, trading up +7.7% on rate-cut related tailwinds, while energy storage company Fluence slid -13.9%.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
Jul 19th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| TPG | TPG | 7.7% |
| On Holding | ONON | 6.8% |
| SentinelOne | S | 6.8% |
| Bausch + Lomb | BLCO | 6.5% |
| Viking Holdings | VIK | 5.8% |
| Bottom 5 | ||
| Fluence Energy | FLNC | -13.9% |
| RDDT | -12.4% | |
| Informatica | INFA | -12.3% |
| Arm Holdings | ARM | -9.8% |
| Instructure Holdings | INST | -9.7% |
| Sectors | ||
| Health Care | 3.5% | |
| Financials | 3.2% | |
| Consumer Staples | -0.5% | |
| Technology | -2.4% | |
| Consumer Discretionary | -2.9% | |
| Industrials | -3.7% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -1.3% last week vs. -2.0% for the S&P 500.
