AndreyPopov
Seven IPOs priced this past week, led by three that raised $100+ million.
After upwardly revising the terms earlier in the week, CG Oncology (CGON) further upsized the offering and priced above the range to raise $380 million at a $1.3 billion market cap. Its sole clinical asset is initially in development for a subclass of bladder cancer and is currently in an ongoing Phase 3 trial, with topline data expected by the end of 2024. If successful, the biotech believes that this trial could serve as the basis for a BLA submission. CG Oncology popped 96% on its first day and finished the week up 84%.
ArriVent BioPharma (AVBP) plans to raise $150 million at a $585 million market cap. The biotech’s sole clinical candidate is a kinase inhibitor being developed for non-small cell lung cancer (NSCLC) across a broad set of epithelial growth factor receptor mutations (EGFRm). The drug is currently being evaluated in multiple trials, including a pivotal Phase 3 trial with topline data in 2025. ArriVent finished up 11%.
In its second IPO attempt, BrightSpring Health Services (BTSG) plans to raise $880 million at a $3.4 billion market cap. The company offers a home and community-based healthcare services platform. It is focused on delivering services to complex patients, particularly Senior and Specialty patients, which includes Behavioral populations. The company is very large with decent growth, though it is leveraged. BrightSpring finished down 15%.
Four very small Chinese issuers also began trading in the US this past week, all raising $10 million or less: online marketing firm Haoxi Health Technology (HAO), garment trim distributor J-Long Group (JL), toner cartridge maker Planet Image International (YIBO), and security company SU Group Holdings (SUGP). Haoxi Health Technology and J-Long Group were the only ones to finish above issue.
| 7 IPOs During the Week of January 22nd, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 01/26 |
| $7M | $157M | 0% | +49% | +101% | |
| Hong Kong-based distributor of reflective and non-reflective garment trims. | |||||
| $380M | $1,292M | 12% | +96% | +84% | |
| Phase 3 biotech developing an oncolytic immunotherapy for bladder cancer. | |||||
| $10M | $128M | -11% | +32% | +32% | |
| Provides online marketing solutions in China. | |||||
| $175M | $610M | 0% | +11% | +11% | |
| Phase 3 biotech developing a novel kinase inhibitor for EGFR-mutated lung cancer. | |||||
| $5M | $53M | -11% | +0% | -12% | |
| Provides security-related engineering services in Hong Kong. | |||||
| $693M | $2,666M | -21% | -15% | -15% | |
| Provides home and community-based healthcare services. | |||||
| $5M | $216M | -11% | -30% | -32% | |
| Chinese toner cartridge manufacturer. | |||||
| 3 Filings During the Week of January 22nd, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
APRINOIA Therapeutics ((APRI)) |
$50M | Health Care | Tiger Brokers |
| Phase 3 biotech developing diagnostics and therapies for neurodegenerative diseases. | |||
|
Semidux (JIE) |
$17M | Technology | EF Hutton |
| Chinese provider of products and services for metaverse computing infrastructure. | |||
| $19M | Technology | Eddid Securities | |
| Singapore-based provider of maritime connectivity and digitalization solutions. | |||
Three listings are currently scheduled for the week ahead, although other issuers may join the calendar throughout the week.
Leading the pack, sports equipment and apparel maker Amer Sports (AS) plans to raise $1.7 billion at an $8.3 billion market cap. The Finland-based company’s portfolio includes major brands like Arc’teryx, Salomon, Wilson, and Louisville Slugger, and its products are sold in over 100 different countries, including in over 300 owned retail stores. Amer is highly profitable with strong revenue growth, though it is highly leveraged and operates in a very competitive industry.
UK-based luxury outerwear brand Perfect Moment (PMNT) plans to raise $8 million at a $101 million market cap. The company makes luxury ski outwear and accessories, swimwear, and activewear, which it sells both D2C and wholesale. It operates in a growing but highly seasonal industry.
Cell therapy biotech FibroBiologics (FBLG) is set to direct list on the Nasdaq in the week ahead. Spun out of former parent FibroGenesis in 2021, FibroBiologics is focused on developing fibroblast-based therapies for patients suffering from chronic diseases with significant unmet medical needs, including degenerative disc disease, multiple sclerosis (MS), wound healing, and certain cancers. It completed a Phase 1 study in Mexico for refractory MS, and plans to submit an IND with the FDA for a Phase 2 trial.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
|
Amer Sports (AS) Helsinki, Finland |
$1,700M$8,345M |
$16 – $18 100,000,000 |
Goldman BofA |
| Sells apparel and sports gear under brands like Arc’teryx, Salomon, and Wilson. | |||
|
Houston, TX |
$87M $644M |
$18 4,806,226 |
|
| Phase 1 biotech developing fibroblast-based therapies for chronic diseases. | |||
|
Perfect Moment (PMNT) London, United Kingdom |
$8M $101M |
$6 – $7 1,232,000 |
ThinkEquity Laidlaw (UK) |
| Luxury lifestyle brand focused on ski apparel and other activewear. | |||
Four lock-up periods will be expiring in the week ahead.
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 1/25/2024, the Renaissance IPO Index was down 8.3% year-to-date, while the S&P 500 was up 2.7%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index was down 9.2% year-to-date, while the ACWX was down 1.8%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
