Ingenious Buddy
Three IPOs debuted this past week. Three IPOs and one SPAC submitted initial filings this week.
Product assessment services provider UL Solutions (ULS) priced its upsized IPO above the midpoint to raise $946 million at a $5.7 billion market cap. UL Solutions provides testing, inspection, and certification (TIC) services and related software and advisory offerings. UL Solutions states that it is the largest TIC services provider headquartered in North America by revenue, spanning across more than 110 countries in 2023. The company is highly profitable, with a significant amount of recurring revenue, although it has recently posted inconsistent EBITDA margins. UL Solutions finished the week up 25%.
Post-acute healthcare provider PACS Group (PACS) priced its upsized IPO at the midpoint to raise $450 million at a $3.2 billion market cap. The company provides nursing care through a portfolio of independently operated facilities and is one of the largest skilled nursing providers in the US by number of facilities. The company has increased occupancy in its facilities in 2023, and is set to benefit from a growing elderly population in the US, but operates in a highly regulated field subject to shifting legislation. PACS Group finished the week up 14%.
Singapore-based telehealth platform Mobile-health Network Solutions (MNDR) priced its US IP at the low end to raise $9 million at a $135 million market cap. The Singapore-based telehealth company provides services through its MaNaDr platform, where users throughout the APAC region can access a range of telehealth solutions, comprising teleconsultation services and personalized services. The company also operates one brick-and-mortar GP clinic in Singapore. It finished the week up 275% after a 68% first-day pop.
| 3 IPOs During the Week of April 8th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 04/12 |
| Mobile-health Network (MNDR) | $9M | $136M | -11% | +68% | +275% |
| Provides a platform for telehealth and other healthcare services in the APAC region. | |||||
| UL Solutions (ULS) | $946M | $5,652M | 2% | +25% | +25% |
| Provides product testing, inspection, and certification services. | |||||
| PACS Group (PACS) | $450M | $3,203M | 0% | +10% | +14% |
| Post-acute care provider with more than 200 nursing facilities across the US. | |||||
Three IPOs submitted initial filings this past week. Auto transport roll-up Proficient Auto Logistics (PAL), specialty property and casualty insurer Bowhead Specialty (BOW), and design software provider Silvaco Group (SVCO) all filed to raise $100 million. One blank-check company submitted initial filings, Mission Space Acquisition (MISNU), which filed to raise $100 million to target aerospace and defense.
Two sizable IPOs are currently scheduled for the week ahead, led by another large tech deal.
Digital rebate platform Ibotta (IBTA) plans to raise $450 million at a $2.8 billion market cap. The company’s platform allows CPG brands to deliver digital promotions to consumers through a single network, and as of 12/31/23, it worked directly with over 850 different clients representing over 2,400 different brands. While it depends on consumption and promotion levels, Ibotta has delivered solid growth and turned profitable in 2023.
Carve-out Centuri Holdings (CTRI) plans to raise $242 million ($293 million incl. concurrent private placement) at a $1.7 billion market cap. Centuri is a pure-play North American utility infrastructure services company, focused on the modernization of utility infrastructure. The company has over 400 customers throughout North America, with a project backlog of more than $5 billion. It will be leveraged post-IPO.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
|
Phoenix, AZ |
$242M$1,694M | $18 – $2112,400,000 |
UBS BofA |
| Carve-out of Southwest Gas providing infrastructure services to utilities. | |||
|
Denver, CO |
$450M $2,859M |
$76 – $84 5,625,000 |
Goldman Citi |
| Provides a digital marketing platform that offers consumers cash rebates. | |||
Street research is expected for four companies in the week ahead, and lock-up periods will be expiring for two companies.
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 4/11/2024, the Renaissance IPO Index was up 7.1% year-to-date, while the S&P 500 was up 9.4%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Coinbase Global (COIN) and Kenvue (KVUE). The Renaissance International IPO Index was up 2.0% year-to-date, while the ACWX was up 4.6%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Wise.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
