IPOS - U.S. IPO Weekly Recap: Kenvue And ACELYRIN Fire Up The IPO Market Raising A Combined $4.3 Billion
2023-05-07 08:08:00 ET
Summary
- The month of May started off with two large IPOs, Kenvue and ACELYRIN.
- Two blank check IPOs also priced this past week.
- One company is scheduled to list in the week ahead.
Following April’s stream of micro-cap activity , the month of May started off with two large IPOs, Kenvue (KVUE) and ACELYRIN (SLRN). The deals raised a combined $4.3 billion, or nearly two-thirds of IPO proceeds year-to-date, and both delivered solid trading in their debuts.The latest spin-off to take on the IPO market , J&J’s consumer health unit Kenvue upsized and priced slightly above the midpoint to raise $3.8 billion at a $42.0 billion market cap. Mature and highly profitable, the company offers a portfolio of well-known brands like Tylenol and Listerine and serves over a billion people across more than 165 countries. Kenvue plans to pay a quarterly dividend with a 3.6% annualized yield at the offer price. The IPO proceeds as well as $9 billion of new debt issuance will be paid to J&J as part of the separation. Kenvue finished up 20%.Launching on Monday, immunology biotech ACELYRIN further upsized and priced at the high end to raise $540 million at a $1.8 billion market cap, the largest IPO from a biotech since February 2021. Its lead candidate was licensed from Affibody in late 2021 and is currently in Phase 2b/3 trials for hidradenitis suppurativa ((HS)), psoriatic arthritis (PsA), and uveitis. The company expects topline data for its HS trial in the 2H23, and PsA and uveitis in mid-2024. ACELYRIN finished up 31%.Two blank check IPOs also priced this past week: Asia-focused Golden Star Acquisition (GODNU) and deep tech-focused Alchemy Investments Acquisition 1 (ALCYU).
| 4 IPOs During the Week of May 1st, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/05 |
| Prospect Energy Holdings (AMGSU) | |||||
| $300M | |||||
| SPAC | |||||
| EF Hutton | |||||
| Blank check company targeting the clean energy industry in APAC and Canada. | |||||
| WeBuy Global (WBUY) | |||||
| $16M | |||||
| Technology | |||||
| Univest Sec. | |||||
| Provides an e-commerce platform for grocery and travel in Singapore and Indonesia. | |||||
| ZEROSPO (ZSPO) | |||||
| $17M | |||||
| Consumer Discretionary | |||||
| Boustead | |||||
| Owns, operates, and franchises medical and relaxation salons in Japan. |
Week Ahead
One company is scheduled to list in the week ahead, although it is not eligible for inclusion in our IPO stats. However, other issuers may join the calendar early in the week following the strong debut of J&J spin-off Kenvue ((KVUE)).
Projection screen maker Strong Global Entertainment (SGE) plans to raise $8 million at a $40 million market cap. Being spun out of FG Group (FGH), the company manufactures large format projection screens and provides related products and services, primarily to cinemas, theme parks, educational institutions, and similar venues. The company is profitable and growing, though its top 10 customers accounted for over half of revenue in 2022.
Street research is expected for two companies in the week ahead, and four lock-up periods will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/4/2023, the Renaissance IPO Index was up 11.2% year-to-date, while the S&P 500 was up 6.4%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 6.3% year-to-date, while the ACWX was up 8.4%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and JD Health.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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U.S. IPO Weekly Recap: Kenvue And ACELYRIN Fire Up The IPO Market, Raising A Combined $4.3 Billion