Summary
- The IPO market was quieter than expected this past week. Both deals on the calendar delayed, and there was no wave of post-Presidents’ Day launches.
- With no large post-Presidents’ Day launches this past week, six small companies are scheduled to list in the week ahead.
- The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/23/2023, the Renaissance IPO Index was up 15.4% year-to-date, while the S&P 500 was up 4.8%.
The IPO market was quieter than expected this past week. Both deals on the calendar delayed ([[NYX]] and [[IZM]]), and there was no wave of post-Presidents’ Day launches.
The biggest news of the week came from the pipeline. Atmus Filtration Technologies ( ATMU ), the filtration unit of engine maker Cummins ( CMI ), filed for an IPO we estimate could raise up to $350 million. Serving end-users in approximately 150 countries, Atmus provides filtration products for various on- and off-highway vehicles and equipment. The company’s products are primarily used in the aftermarket, providing a strong recurring revenue base.
6 Filings During the Week of February 20th, 2023 | |||
---|---|---|---|
Issuer Business | DealSize | Sector | LeadUnderwriter |
MED EIBY Holding (BSME) | $20M | Health Care | Boustead |
Chinese medical device manufacturer and retailer. | |||
NeoTV Group (NTV) | $55M | Communication Services | Prime Num. Cap. |
Esport event operator and variety show producer in China. | |||
CO2 Energy Transition (COETU.RC) | $80M | SPAC | EF Hutton |
Blank check company targeting the carbon capture, utilization, and storage industry. | |||
99 Acquisition Group (NNAGU) | $80M | SPAC | EF Hutton |
Blank check company targeting the real estate sector. | |||
Atmus Filtration ( ATMU ) | $350M | Industrials | Goldman |
Industrial and engine filtration business spun out of Cummins. | |||
Azitra (AZTR.RC) | $17M | Health Care | ThinkEquity |
Phase 1-ready dermatology biotech developing engineered bacteria therapies. |
Week Ahead
With no large post-Presidents’ Day launches this past week, six small companies are scheduled to list in the week ahead. Micro-caps have remained fairly active so far this year despite increased scrutiny from regulators, and should continue to boost deal flow due in part to a surge in small Chinese filers. Larger deals have picked up though, with seven IPOs (44%) raising $100 million or more year-to-date.
SolarJuice ( SJA ) may raise $17 million at a $154 million market cap in the coming week. Being spun out of SPI Energy ( SPI ), the company provides solar energy equipment and services for residential and small commercial uses in the US and Australia. Another SPI Energy spin-off, Phoenix Motor ( PEV ), went public last June and currently trades 85% below its IPO price.
Alternative medicine practice Nava Health MD ( NAVA ) plans to raise $16 million at an $83 million market cap. The company operates four physical locations in the Baltimore-Washington metro region, with up to eight more expected to open by year-end, and provides telehealth services in 12 states and DC.
China-based ASIC chip designer Intchains Group ( ICG ) may raise $10 million at a $481 million market cap. The company, which has been profitable since 2020, designs chips for blockchain applications. Originally planning to raise $29 million, Intchains cut its proposed ADS offering by 65% this past week.
Advertising contract marketplace NYIAX ( NYX ) plans to raise $9 million at a $71 million market cap. Small and highly unprofitable, NYIAX’s platform utilizes blockchain technology to allow companies to list, buy, and sell advertising and audience campaigns.
Opti-Harvest ( OPHV ), which produces agricultural equipment and technology to optimize sunlight intake for plant growing, plans to raise $8 million at a $111 million market cap. The company began commercializing its first products in 2021, and has yet to generate significant revenue.
Ultimax Digital ( NFTX ), which operates a video game development and publishing studio and an NFT marketplace, plans to raise $8 million at an $80 million market cap. Ultimax Digital expanded into the NFT business in 2021, and had no revenue in 2021 or the 9mo22.
U.S. IPO Calendar | |||
---|---|---|---|
IssuerBusiness | Deal SizeMarket Cap | Price RangeShares Filed | TopBookrunners |
Nava Health MD ( NAVA ) Columbia, MD | $16M$83M | $62,731,938 | WestPark Capital |
Provides alternative and holistic medicine services in clinics and online. | |||
NYIAX ( NYX ) New York, NY | $9M$71M | $51,850,000 | BousteadWestPark Capital |
Provides an advertising marketplace and contract management platform. | |||
Opti-Harvest ( OPHV ) Los Angeles, CA | $8M$111M | $42,000,000 | WestPark Capital |
Makes sunlight optimization products for agriculture. | |||
Ultimax Digital ( NFTX ) New York, NY | $8M$80M | $4 - $51,875,000 | WestPark Capital |
Operates a video game development and publishing studio and an NFT marketplace. | |||
Intchains ( ICG ) Shanghai, China | $10M$481M | $7 - $91,250,000 | Maxim |
China-based fabless designer of ASIC chips for blockchain applications. | |||
SolarJuice ( SJA ) Sydney, Australia | $17M$154M | $5 - $63,000,000 | Maxim |
Provider of solar energy equipment and services being spun out of SPI Energy. |
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/23/2023, the Renaissance IPO Index was up 15.4% year-to-date, while the S&P 500 was up 4.8%. 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 0.5% year-to-date, while the ACWX was up 5.3%. 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.
For further details see:
U.S. IPO Weekly Recap: No IPOs, But Pipeline Gets A $350 Million Pick Up From Cummins Spin-Off Atmus