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Just one small IPO priced this past week, joined by one SPAC that began trading. Three IPOs joined the pipeline, including one that plans to raise $100 million, as well as four SPACs.
The sole pricing this week was steel framing manufacturer INNO HOLDINGS (INHD), which priced at the low end to raise $10 million at an $83 million market cap. Small and highly unprofitable, the company serves commercial, residential, and industrial customers, and its finished products and cold-formed steel members are used in a variety of building types. Unlike most US IPOs, INNO did not begin trading after pricing; it’s scheduled to debut in the week ahead. While not included below, blank check Aimei Health Technology (AFJKU) began trading on Monday after raising $60 million the prior week. It plans to target small-cap healthcare businesses.
| 1 IPO During the Week of December 4th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 12/08 |
| INNO (INHD) Manufactures cold-formed steel framing for the construction industry. | $10M | $83M | -11% | n/a | n/a |
Offshore transport services provider Hornbeck Offshore Services (HOS) filed to raise $100 million. The company provides marine transport services in the US and Latin America using its fleet of offshore and multi-purpose vessels, which it believes is one of the largest in the industry. Hornbeck was joined by UK-based energy services provider Energys Group (EGYS.RC), which filed to raise $15 million, and Malaysian wire and cable manufacturer Linkers Industries (LNKS), which filed to raise $11 million.
Four SPACs submitted initial filings this past week. Blue Room Acquisition (IBLUU) filed to raise $200 million to target financials. Legato Merger III (LEGT.U) filed to raise $175 million to target infrastructure, engineering, construction, industrials, and renewables. FG Merger III (FGTHU.RC) filed to raise $150 million to target financial services in North America. TechyBird Acquisition (TKBDU) filed to raise $60 million to target tech and biotech.
| 7 Filings During the Week of December 4th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | direct Underwriter |
| Energys Group (EGYS.RC) UK-based provider of energy-saving products and services. | $15M | Industrials | Joseph Stone |
| Linkers Industries (LNKS) Malaysian manufacturer and supplier of wire/cable harnesses. | $11M | Industrials | Pacific Century Securities |
| Hornbeck Offshore (HOS) Provides marine transportation to the offshore oilfield and diversified non-oilfield markets. | $100M | Energy | JP Morgan |
| Legato Merger III (LEGT.U) Blank check company targeting the infrastructure, E&C, industrial and renewables industries. | $175M | SPAC | BTIG |
| Blue Room Acquisition (IBLUU) Blank check company led by MKM Bolsa Privada executives targeting the financial sector. | $200M | SPAC | Maxim |
| FG Merger III (FGTHU.RC) Blank check company targeting the financial services industry in North America. | $150M | SPAC | ThinkEquity |
| TechyBird Acquisition (TKBDU) Blank check company targeting the tech and biotech sectors. | $60M | SPAC | Spartan Capital |
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/7/2023, the Renaissance IPO Index was up 38.7% year-to-date, while the S&P 500 was up 21.3%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Kenvue (KVUE). The Renaissance International IPO Index was down 19.2% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou (OTCPK:KUASF) and Porsche (OTCPK:POAHY).
Two foreign issuers are currently scheduled to price US IPOs in the week ahead, though some small deals may unite the calendar late.
China-based ZKH Group (ZKH) plans to raise $66 million at a $2.8 billion market cap. The company provides MRO (materials for maintenance, repair, and operations) procurement services through two platforms, ZKH platform and GBB platform. ZKH Group served over 64,000 customers in the 12 months ended 9/30/23, with product offerings spanning 17.2 million SKUs and all major MRO product lines. The company is unprofitable, and growth slowed in the 9mo23.Bermuda-based video game creator RoyaLand (RLND) plans to raise $7 million at an $87 million market cap. The company is currently in the development phase for its royalty-themed video game, TheRoyal.Land. It has engaged a third party to complete the storyboard for TheRoyal.Land, which will begin post-IPO.
While not included below, steel framing manufacturer INNO HOLDINGS (INHD) is scheduled to begin trading in the coming week. The company raised $10 million this past week, but unlike most US IPOs, it did not begin trading the day after pricing.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Book runners |
| RoyaLand (RLND)Hamilton, Bermuda. Bermuda-based video game developer focused on a mobile-first MMORPG. | $7M$87M | $5 – $61,250,000 | Revere Sec.Dominari Securities |
| ZKH Group (ZKH)Shanghai, China. Chinese B2B procurement platform for industrial supplies. | $66M$2,752M | $15.50 – $17.504,000,000 | Deutsche BankChina Ren. |
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/7/2023, the Renaissance IPO Index was up 38.7% year-to-date, while the S&P 500 was up 21.3%. Renaissance Capital’s IPO ETF tracks the index, and top ETF holdings include Airbnb and Kenvue. The Renaissance International IPO Index was down 19.2% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF tracks the index, and top ETF holdings include Kuaishou and Porsche.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
