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Three IPOs raised $330 million last week, led by Energy Play ProFrac Holding (PFHC), which delayed its pricing by one day. A bank joined the fracking service provider and a micro-cap for IoT network solutions and four SPACs.
ProFrac’s price was well below the range to raise $288 million on a market cap of $2.5 billion. ProFrac, which operates in the solid energy sector, believes it is the largest private provider of hydraulic fracturing services in North America by hydraulic horsepower. There are several related party transactions and ties with the founding Wilks family, who stated 41% of the shares in the offering. ProFrac closed up 1%.
New York Bank Hanover Bancorp (HNVR) was downsized slightly and valued on the low end to raise $27 million on a market cap of $153 million. Hanover primarily serves small and medium-sized customers through eight offices focused on the greater NYC area.
As of 12/31/21, the bank had total assets of $1.5 billion, total deposits of $1.2 billion and total equity of $129 million. Hanover closed with a plus of 3%.
Actelis Networks (ASNS), which offers hybrid fiber-copper equipment solutions for telecom and IoT networks that are priced at the low end to raise $15 million with a market cap of $69 million. The micro-cap closed down 40%.
Four SPACs also priced, led by Acquisition of Investcorp India (IVCAU), which raised US$225 million to explore opportunities in India. The SPAC market has collapsed further in 2022, with layoffs rising amid poor de-SPAC trade. Redemptions are also expected to continue as underwriters pull out of the space due to changing regulations.
|7 IPOs in the week of May 9, 2022|
|Hannover Bancorp (HNVR)||$27M||$153 million||-5%||+0%||+3%|
|Community bank with eight branches in New York and New Jersey.|
|ProFrac (PFHC)||$288 million||$2,524 million||-20%||+1%||+1%|
|Provides hydraulic fracturing and completion services to upstream E&Ps in North America.|
|Investcorp India Acq. (IVCAU)||$225 million||$281 million||0%||+0%||+0%|
|Blank check company formed by Investcorp Group targeting businesses in India.|
|Monterey Capital Acq. (MCACU)||$80M||$101M||0%||n / A||+0%|
|Blank check company targeting the clean energy transition space.|
|Global Blockchain Acq. (GBBKU)||150 million dollars||$191M||0%||+0%||+0%|
|Blank check company led by executives at Global Blockchain Ventures targeting blockchain technology companies.|
|Prime Number Detection (PNACU)||$60M||$79 million||0%||-1%||-1%|
|Blank check company founded by Dongfeng Wang, aimed at technology-enabled financial companies.|
|Actelis Networks (ASNS)||$15M||$69 million||-20%||-40%||-40%|
|Provides hybrid fiber and copper device solutions for telecom and IoT networks.|
|2 submissions in the week of May 9, 2022|
|Metaverse Capture (METAU.RC)||150 million dollars||SPAC||I banker|
|Blank check company targeting the Metaverse arena in North America, Europe and Asia.|
|CE Energy Procurement (CEACU)||100 million dollars||SPAC||maxim|
|Blank check company targeting the energy industry in America.|
There are currently no IPOs scheduled for the coming week, although some SPACs could be added to the calendar later in the week.
Although the calendar is calm, several major issuers have kept the pipeline active, including piano makers Steinway Musical Instruments Holdings (STWY), Child Care Provider childcare (KLC), chain of thrift stores Savers Value Village (SVV) and AIG carve out Corebridge Financial (CRBG).
Lockdown periods will expire for some of the surnames in the 2021 IPO class, including billion-dollar issuers Stock now (NU), restaurant chain sweet green (SG) and Bitcoin miners Iris Energy (IRISH). Investors will likely be watching the trade closely: The biggest IPO of 2021, Rivian (RIVN) was trading up more than 20% after the lockup period ended on Monday.
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 5/12/2022, the Renaissance IPO Index was down 50.8% year-to-date, while the S&P 500 was down 17.1%.
Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index is down 35.1% year-to-date, while the ACWX is down 17.0%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK:VOLAF) and Kuaishou (OTCPK:KUASF).
Editor’s note: The summary points for this article were selected by Seeking Alpha editors.