Inflation is the dominant economic story of 2022. And it won’t let investors forget it.
The new inflation numbers came in at a 40-year high, crushing equity markets. The S&P 500 dropped -5.1% this week, while the IPO market declined -4.7%.
Just one micro-cap IPO priced this past week: Early-stage EV developer Phoenix Motor (Nasdaq: PEV) raised $16 million, before plummeting -57.1%. Two companies listed via SPAC merger, both of which faced heavy redemptions. Robotic automation play Symbotic (Nasdaq: SYM) doubled after its listing, but then retreated to a modest gain of +5.8%, while gene therapy biotech Senti Bio (Nasdaq: SNTI) fell -52.0%.
For the first time since January, there were no new SPAC merger announcements this week. On the other hand, after 28 days without a blank check IPO, one SPAC priced (ACACU), ending the SPAC market’s longest pause in over two years.
For the second week in a row, China produced the top IPO winners, led by vaping brand RLX Technology up +22.3%. Shipping darling ZIM Integrated fell -23.0% amid concerns that a weaker economy will impact global trade.
Take care,
Bill Smith
Co-Founder and CEO
Renaissance Capital
|
Biggest price changes through
Jun 10th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| RLX Technology | RLX | 22.3% |
| Full Truck Alliance | YMM | 15.9% |
| Li Auto | LI | 14.2% |
| GitLab | GTLB | 9.8% |
| Kanzhun | BZ | 8.9% |
| Bottom 5 | ||
| ZIM Integrated Shipping Services | ZIM | -23.0% |
| Upstart Holdings | UPST | -22.8% |
| CureVac | CVAC | -19.7% |
| Freshworks | FRSH | -19.6% |
| Nu Holdings | NU | -19.1% |
| Sectors | ||
| Consumer Staples | -0.4% | |
| Consumer Discretionary | -2.8% | |
| Technology | -5.9% | |
| Real Estate | -6.7% | |
| Health Care | -7.2% | |
| Industrials | -11.8% | |
| Financials | -12.4% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -4.7% last week vs. -5.1% for the S&P 500.
