Five IPOs raised a combined $5.4 billion this past week, led by the blockbuster IPO of Arm (ARM). Three issuers submitted initial filings.
The largest IPO of 2023 so far, Arm priced at the top of the range to raise $4.9 billion at a $52.9 billion market cap. Arm is an industry leader in central processing units (CPUs), stating that its energy-efficient CPUs are in over 99% of the world’s smartphones in 2022, and estimating that approximately 70% of the world’s population uses Arm-based products. The company saw revenue decline in its most recent fiscal year, largely due to issues in China, which it expects to continue in the near term. Arm traded up 25% in its debut, and finished the week up 19%.
Radiopharmaceutical biotech RayzeBio (RYZB) priced its upsized IPO at the top of the range to raise $311 million at a $1.1 billion market cap. RayzeBio’s lead candidate is designed to deliver a highly potent alpha particle radioisotope to tumors overexpressing somatostatin receptor type 2. The company is enrolling a registrational Phase 3 trial for the treatment of gastroenteropancreatic neuroendocrine tumors. RayzeBio finished the week up 33%.
Neuropsych biotech Neumora Therapeutics (NMRA) priced at the midpoint to raise $250 million at a $2.8 billion market cap. The company’s lead candidate is a novel once-daily oral kappa opioid receptor antagonist that is being developed for the treatment of major depressive disorder. Neumora is initiating a pivotal Phase 3 program, and expects topline results in the 2H24. It finished the week down 4%.
Singaporean robotic cleaning equipment provider Simpple (SPPL) priced its downsized IPO at the low end to raise $8 million at an $84 million market cap. Simpple provides autonomous robotic cleaning equipment and relating software in Singapore, and has been adopted in schools, hospitals, and universities in the country. It finished the week down 7%.
Macau-based forestry company Nature Wood Group (NWGL) priced its downsized IPO at the low end to raise $7 million at a $148 million market cap. The company is a vertically-integrated forestry companies with facilities in Peru, and produces a range of products such as logs, decking, flooring, and sawn timber. Nature Wood Group finished the week down 4%.
| 5 IPOs During the Week of September 11th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/15 |
|
RayzeBio (RYZB) |
$311M | $1,112M | 6% | +33% | +33% |
| Phase 3 biotech developing radiopharmaceutical therapies for cancer. | |||||
|
Arm (ARM) |
$4,871M | $52,914M | 4% | +25% | +19% |
| UK-based chip designer for smartphones and other markets. | |||||
|
Nature Wood Group (NWGL) |
$7M | $148M | -10% | +7% | -4% |
| Macau-based forestry company with operations in Peru. | |||||
| Neumora Therapeutics (NMRA) | $250M | $2,760M | 0% | -4% | -4% |
| Phase 3 biotech developing therapies for neuropsychiatric indications. | |||||
|
Simpple (SPPL) |
$8M | $84M | 17% | -7% | -7% |
| Provides industrial robotic cleaning equipment in Singapore. | |||||
European shoemaker Birkenstock Holding (BIRK) led the week’s pipeline additions, filing to raise an estimated $750 million. Known for its luxury sandals, Birkenstock engineers and produces 100% of its products in the EU through vertically integrated manufacturing operations.
The remaining additions were small issuers. Hypogonadism-focused biotech Acesis Holdings (ACSB) filed to raise $7 million at an $81 million market cap, and Hong Kong-based hairstyling products manufacturer Fenbo Holdings (FEBO) filed to raise $5 million at a $55 million market cap.
| 3 Filings During the Week of September 11th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Acesis (ACSB) |
$7M | Health Care | Boustead |
| Preclinical biotech developing non-hormonal oral therapies for low testosterone in men. | |||
|
Birkenstock (BIRK) |
$750M | Consumer Discretionary | Goldman |
| European shoemaker known for its luxury sandals. | |||
|
Fenbo Holdings (FEBO) |
$5M | Consumer Discretionary | EF Hutton |
| Hong Kong-based manufacturer of electrical hairstyling products. | |||
Five deals are currently on the calendar for the week ahead, led by the IPO market’s first US tech unicorns in nearly two years.
After raising the range on Friday, grocery delivery platform Instacart (CART) plans to raise $638 million at a $9.6 billion market cap. In June 2023, the company connected 7.7 million customers with 600,000 independent shoppers, and its retail partners include 1,400 banners representing over 80,000 stores. While it faces rising competition from DoorDash and others, Silicon Valley-based Instacart was able to grow revenue by 31% in the 1H23, while achieving profitability.
Boston-based Klaviyo (KVYO) plans to raise $499 million at an $8.0 billion market cap. The SaaS company provides a customer engagement platform that allows businesses to turn first-party data into actionable insights in real time. It also allows for management of marketing messaging across multiple channels, though the company currently depends on third parties for delivery of messages. Fast-growing with positive cash flow, Klaviyo serves over 130,000 customers, primarily in the retail vertical.
The week’s remaining deals are small. Israeli 3D printing company XJet (XJET) plans to raise $6 million at a $77 million market cap. Small and highly unprofitable, XJet offers 3D printing technologies based on its patented Nano-Particles Jetting process. Tentatively scheduled for the week ahead, holdover Gamer Pakistan (GPAK) may raise $8 million at a $115 million market cap, and Chinese tech firm Global Mofy Metaverse (GMM) may raise $6 million at a $130 million market cap.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
|
Instacart (CART) San Francisco, CA |
$638M $9,612M |
$28 – $30 22,000,000 |
Goldman JPMorgan |
| Operates a grocery delivery platform. | |||
|
Klaviyo (KVYO) Boston, MA |
$499M $7,974M |
$25 – $27 19,200,000 |
Goldman Morgan Stanley |
| Provides a software platform that automates digital marketing campaigns. | |||
|
XJet (XJET) Rehovot, Israel |
$6M $77M |
$4 1,600,000 |
Aegis Cap. |
| Makes and sells 3D printers for metal and ceramic end-use parts. | |||
|
Gamer Pakistan (GPAK) Henderson, NV |
$8M $115M |
$4 – $5 1,700,000 |
WestPark Capital |
| Pre-revenue organizer of esports events in Pakistan. | |||
|
Global Mofy Metaverse (GMM) Beijing, China |
$6M $130M |
$4.50 – $5.50 1,200,000 |
Prime Num. Cap. |
| Chinese provider of virtual content and digital marketing services. | |||
Lock-up periods for two companies 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 9/14/2023, the Renaissance IPO Index was up 33.5% year-to-date, while the S&P 500 was up 18.7%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 15.4% year-to-date, while the ACWX was up 9.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
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