Both the calendar and the pipeline saw some movement this past week. Two large IPOs launched, one of which also priced, and two sizable deals submitted new filings.
Cross-listing from Paris, biotech Abivax (ABVX) led the week’s deals, pricing at the low end to raise $236 million at a $760 million market cap. Focused on chronic inflammatory diseases, the company is currently evaluating its sole clinical candidate in Phase 3 trials for the treatment of adults with moderate to severe ulcerative colitis (UC). Prior trials have yielded encouraging results, but the UC drug landscape is crowded, with multiple approved and clinical-stage competitors. Abivax finished down 28%.
Two other small issuers completed listings. Singapore-based e-commerce platform Webuy Global (WBUY) priced at the low end to raise $15 million at a $207 million market cap, and finished down 21%. Northann (NCL), which makes 3D-printed flooring products, downsized and priced at the high end to raise $6 million at a $106 million market cap; it finished up 20%.
| 3 IPOs During the Week of October 16th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/20 |
|
Northann (NCL) |
$6M | $106M | 25% | -8% | +20% |
| Makes and sells 3D-printed vinyl flooring products. | |||||
|
Webuy Global (WBUY) |
$15M | $207M | 0% | +34% | -21% |
| Provides an e-commerce platform for grocery and travel in Singapore and Indonesia. | |||||
|
Abivax (ABVX) |
$236M | $760M | -6% | -28% | -28% |
| Late-stage French biotech developing therapies for chronic inflammatory diseases. | |||||
Eight IPOs submitted initial filings, led by three sizable names. Hospital billing platform Waystar (WAY) filed for an estimated $500 million IPO. Reinsurer Hamilton Insurance Group (HG) and cancer biotech CARGO Therapeutics (CRGX) both filed to raise $100 million.
| 10 Filings During the Week of October 16th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
CARGO Therapeutics (CRGX) |
$100M | Health Care | JPMorgan |
| Phase 2 biotech developing CAR T cell therapies for cancer. | |||
|
Invea Therapeutics (OTC:INAI) |
$75M | Health Care | BofA |
| Preclinical biotech using AI to develop small molecules for inflammatory diseases. | |||
|
Iron Horse Acquisitions (IROHU) |
$60M | SPAC | EF Hutton |
| Blank check company targeting media and entertainment in the US. | |||
|
J-Long Group (JL) |
$15M | Consumer Discretionary | Eddid Securities |
| Hong Kong-based distributor of reflective and non-reflective garment trims. | |||
|
Lianfeng Acquisition (LFKG) |
$70M | SPAC | |
| Blank check company targeting the culture tech and art trading sectors in Asia. | |||
|
Impact BioMedical (MPCT) |
$15M | Health Care | Aegis Cap. |
| Developing a portfolio of biomedical technologies. | |||
|
Maverick Lifestyle (MVRK) |
$15M | Consumer Discretionary | Boustead |
| Sells branded hemp-based smokables and related products. | |||
|
Correlate Energy (OTCQB:CIPI) |
$14M | Industrials | Aegis Cap. |
| Provides tech-enabled services for efficiency upgrades to commercial real estate. | |||
|
Hamilton Group (HG) |
$100M | Financials | Barclays |
| Bermuda-based provider of reinsurance and specialty insurance. | |||
|
Waystar (WAY) |
$500M | Technology | JPMorgan |
| Provides cloud-based revenue management software for the healthcare industry. | |||
Mach Natural Resources (MNR) is currently the only IPO scheduled for the week ahead, although some small issuers may join the calendar late.
Mach Natural Resources, an oil and gas driller in the Anadarko Basin, plans to raise $200 million at a $1.9 billion market cap in the year’s second IPO from an energy MLP. Focused on acquiring distressed assets, the company uses horizontal wells to tap into previously inaccessible reserves. The company has demonstrated an ability to grow through acquisitions and plans to offer a dividend, though there is some hair on its corporate governance picture.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
|
Mach Natural Resources (MNR) Oklahoma City, OK |
$200M $1,900M |
$19 – $21 10,000,000 |
Stifel Raymond James |
| US oil and gas production company in the Anadarko Basin. | |||
Street research is expected for four companies in the week ahead, and one lock-up period will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/19/2023, the Renaissance IPO Index was up 23.9% year-to-date, while the S&P 500 was up 12.9%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Palantir Technologies (PLTR). The Renaissance International IPO Index was down 22.5% year-to-date, while the ACWX was up 3.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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