JUPW - U.S. IPO Weekly Recap: Sezzle Direct Lists And A Micro-Cap IPO Pops And Drops

2023-08-19 04:20:00 ET

Summary

• There were three pricings this past week, two of which are included in our IPO stats.
• Pipeline and private company news from the past week provided more hints about fall IPO activity.
• A few holdovers are tentatively scheduled for the week ahead, though more small issuers may join the calendar late.

There were three pricings this past week, two of which are included in our IPO stats. One blank check IPO also debuted, and one issuer submitted an initial filing.

Pipeline and private company news from the past week provided more hints about fall IPO activity. There are some big names lining up potential listings next month, including chip designer Arm , luxury sandal maker Birkenstock , and most recently grocery delivery platform Instacart ( ICART ), which grabbed headlines on Thursday with reports that it's planning a September offering. However, Fogo Hospitality (FOGO) won't be among the fall IPO candidates; the Brazilian steakhouse, which had been on file for an IPO since 2021, was acquired by Bain Capital this past week for $1.1 billion.

Premium golf putter maker Sacks Parente Golf ( SPGC ) priced at the low end to raise $13 million at a $63 million market cap. The company popped over 600% in its debut, but gave up all of its gains in the aftermarket. Sacks Parente designs and sells golf putters, as well as shafts, grips, and head covers. Very small and highly unprofitable, the company opened a new manufacturing facility in Missouri in 2022, and intends to manufacture and assemble substantially all of its products in the US. Sacks Parente Golf finished the week down 37%.

ASX-listed payments platform Sezzle ( SZL ) completed its Nasdaq direct listing on Thursday. It opened for trading at $22.65, significantly above the as-converted price of its shares on the ASX ($12.35), and soared from there; however, trading was halted due to inadequate volume. Sezzle provides a digital payments platform that allows merchants to offer their customers a flexible alternative to traditional credit. As of December 31, 2022, Sezzle's platform supported 42,000 Active Merchants and approximately 2.9 million Active Consumers.

While not included below, toy and souvenir maker SRM Entertainment ( SRM ) raised $6 million at a $47 million market cap. SRM Entertainment designs and develops toys and souvenirs for theme parks and entertainment venues, with a customer base including Walt Disney Parks and Resorts, Universal Studios, SeaWorld, and Six Flags. SRM was spun out of product developer Jupiter Wellness (JUPW), which acquired the company in 2020. It finished the week down 58%.

The sole SPAC to price this week was 99 Acquisition Group ( NNAG ), which raised $75 million to target the real estate sector.

Week Ahead

A few holdovers are tentatively scheduled for the week ahead, though more small issuers may join the calendar late.

With the end of August on the horizon, issuers will need to file soon if they plan to launch in the short Labor Day week. While recent pipeline activity points to a modest start to the fall IPO market , there are several large names reportedly targeting September listings. Chip designer Arm , luxury sandal maker Birkenstock Group , and grocery deliver platform Instacart have all indicated plans to list in the coming month, and public filings from Arm and Instacart could be imminent.

Oncology biotech Adlai Nortye ( ANL ) plans to raise $72 million at an $896 million market cap. Operating through subsidiaries in the US and China, Adlai Nortye's lead candidate (in-licensed from Novartis) is a kinase inhibitor designed to act against solid tumors that is currently undergoing a Phase 3 trial. The company expects to submit an NDA to the FDA seeking potential accelerated approval in the 2H24.

Nature Wood Group ( NWGL ), a Macau-based vertically-integrated forestry company with facilities in Peru, may raise $9 million at a $166 million market cap. The company produces a range of products, including logs, decking, flooring, and sawn timber. Nature Wood owns natural forest concessions and cutting rights for the exploitation of timbers in Peru, covering approximately 615,333 hectares.

Bermuda-based video game creator RoyaLand ( RLND ) may raise $7 million at an $87 million market cap. The company is currently in the development phase for its royalty-themed video game, The Royal.Land. It has completed the storyboard and is in the process of assembling its design and production team.

Street research is expected for three companies in the week ahead, and one lock-up period will be expiring.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/17/2023, the Renaissance IPO Index was up 25.8% year-to-date, while the S&P 500 was up 15.0%. 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 12.7% year-to-date, while the ACWX was up 7.4%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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