ABNB - U.S. IPO Weekly Recap: Pipeline News Disrupts An Otherwise Silent Week For The IPO Market
2023-05-14 07:00:00 ET
Summary
- No IPOs began trading or submitted initial filings this past week, as the sole scheduled deal, Strong Global Entertainment, was delayed to the week ahead.
- Vietnamese EV maker, VinFast, announced plans to merge with SPAC Black Spade Acquisition.
- Two small deals are scheduled to price in the week ahead.
No IPOs began trading or submitted initial filings this past week, as the sole scheduled deal ( SGE ) was delayed to the week ahead.
While the calendar was quiet, the IPO pipeline saw some notable updates. Vietnamese EV maker VinFast ( VFS ) grabbed headlines on Friday when it announced plans to merge with SPAC Black Spade Acquisition ( BSAQ ) at a $27 billion enterprise value, which would make it the third largest de-SPAC of all time; VinFast had been on file for an estimated $1 billion US IPO since December. Several companies on file updated financials, including thrift store chain Savers Value Village ( SVV ), Goldman's MN8 Energy ( MNX ), and Brazilian steakhouse chain Fogo Hospitality ( FOGO ). Piano maker Steinway ( STWY ) withdrew its $100 million IPO despite regularly updating its prospectus over the past year.
Week Ahead
Two small deals are scheduled to price in the week ahead, one of which qualifies for inclusion in our IPO stats. Other names may join the calendar during the week. Dermatology biotech Azitra ( AZTR ) plans to raise $12 million at a $70 million market cap. Azitra's pipeline is currently led by ATR-12, a genetically modified strain of Staphylococcus epidermidis being developed for orphan disease Netherton syndrome. ATR-12 is expected to enter a Phase 1b trial in the 1H23. Azitra also has a joint development agreement with Bayer to investigate and develop two strains of bacterial microbes for consumer/cosmetic products.
While not included below, holdover Strong Global Entertainment ((SGE)) now plans to raise $5 million at a $37 million market cap. Being spun out of FG Group ( FGH ), the company manufactures large format projection screens and provides related products and services. Strong Global Entertainment is profitable and growing, though its top 10 customers accounted for over half of the revenue in 2022.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Branford, CT | |||
| $12M $70M | |||
| $4.50 - $5.50 2,400,000 | |||
| ThinkEquity | |||
| Phase 1-ready dermatology biotech developing engineered bacterial therapies. |
Street research is expected for five 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 5/11/2023, the Renaissance IPO Index was up 18.9% year-to-date, while the S&P 500 was up 8.2%. 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 8.7%. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include Porsche ( POAHY ) and Kuaishou ( KUASF ).
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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U.S. IPO Weekly Recap: Pipeline News Disrupts An Otherwise Silent Week For The IPO Market