Three notable IPOs closed out the third quarter. These included the first non-biotech deals, a.k.a. companies with real operating revenues, since late July. Investors pushed on pricing, but all three closed up and averaged a +15% gain.
Guardian Pharmacy Services (NYSE: GRDN) priced at the low end before it surged +26.8% as the week’s top performer. It’s not the type of deal that gets a lot of media attention, but it is a prime example of why experienced investors pay attention to every IPO. The company boasts a consistent track record of winning within the niche it’s carved.
Obesity biotech BioAge Labs (Nasdaq: BIOA) upsized its offering by 40%, and ended up +16.7% in a volatile debut. Natural gas producer BKV Corp (NYSE: BKV) closed a few pennies above offer; its unproven carbon capture business and Thai parent arguably added some hair to the deal.
Coming up, Carlyle-backed StandardAero (NYSE: SARO) plans to raise $1.3 billion in the fourth-largest IPO of the year. It’s a leader in maintenance services for jet engines, and on Friday it upped the deal size by about 30%. The IPO calendar also has a retail REIT (FVR) and a Chinese courier service (FLX) pricing next week.
We released our Q3 IPO Review. The IPO market delivered a solid quarter, and larger IPOs averaged about a 25% return from offer. In terms of activity, the tech sector remains the missing piece of the puzzle. Most tech deals are delaying to 2025, a bit of a gambit when markets are currently at all-time highs.
Pages 10 and 11 of the Review contain the 36 companies most likely to IPO in the next two quarters (IPO Pro only).
The IPO market rose +0.4% this week, vs. +0.6% for the S&P 500. Chinese EV producer ZEEKR led the IPO Index, up +30.1% thanks to new stimulus measures in China. Customer engagement platform Braze tumbled -8.7%.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
Sep 27th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| ZEEKR Intelligent Technology Holding | ZK | 30.1% |
| Mobileye Global | MBLY | 16.2% |
| Amer Sports | AS | 8.2% |
| Fluence Energy | FLNC | 6.3% |
| Nextracker | NXT | 6.1% |
| Bottom 5 | ||
| Braze | BRZE | -8.7% |
| Instacart (Maplebear) | CART | -5.3% |
| Nu Holdings | NU | -5.2% |
| Bausch + Lomb | BLCO | -5.1% |
| Rubrik | RBRK | -4.0% |
| Sectors | ||
| Consumer Discretionary | 6.3% | |
| Industrials | 3.6% | |
| Technology | 1.5% | |
| Consumer Staples | 1.0% | |
| Financials | 0.8% | |
| Health Care | -3.0% | |
| Real Estate | -3.3% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned 0.4% last week vs. 0.6% for the S&P 500.
