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A small issuer started trading last week. Six small IPOs submitted initial filings.
The week’s news was led by J&J’s (JNJ) Consumer Health Unit kenvue (KVUE), which sentence Conditions for Monday’s $3.3 billion listing. The company’s IPO would be the largest for the US markets in over a year and would more than double IPO proceeds YTD. Kenvue is expected to start trading in the coming week.
Fitness equipment brand Interactive Strength (TRNR) valued at the high end to raise $12 million on a market cap of $118 million. Under the Forme name, the company sells home fitness equipment and offers personal training classes, with the connected fitness mirror at the heart of its offering. The company is very small and highly unprofitable. Interactive Strength finished up 17%.
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Six IPOs filed initial filings in the past week. Group of natural wood (NWGL), a Macau-based forestry company with operations in Peru, applied for a $30 million raising. Chinese supply chain management provider Majestic ideal stock (MJID) applied to raise $17 million on a market cap of $62 million. Brokerage company based in Hong Kong Solowin Holdings (SWIN) submitted to raise $17 million. Chinese retailer of office supplies EShallGo (EHGO) applied to raise $15 million on a market cap of $116 million. Brand for plant-based snacks BranchOut Groceries (BOF) submitted to raise $12 million. Chinese manufacturer of medical devices WORK medical technology group (WOK) submitted to raise $10 million.
| 6 submissions in the week of April 24, 2023 | |||
|---|---|---|---|
| IssuerBusiness | DealSize | sector | lead underwriter |
| Majestic Ideal Holdings (MJID) | $17M | Industry | Invest sec |
| Provides supply chain management services for apparel companies in China. | |||
| Solowin (SWIN) | $17M | finance | EF Hutton |
| Hong Kong based securities brokerage and investment advisory firm. | |||
| EShallGo (EHGO) | $15M | Consumer Discretionary | tiger broker |
| Sells and rents office equipment in China. | |||
| WORK Medical Technology (WOK) | $10M | healthcare | Invest sec |
| Chinese manufacturer of disposable medical products. | |||
| Natural wood group (NWGL) | 30 million dollars | materials | Oriented to XYZ securities |
| Vertically integrated forest company with offices in Peru. | |||
| Branch Out Food (BOF) | $12M | consumer goods | Alexander chap. |
| Sells branded dehydrated plant-based products. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 4/27/2023, the Renaissance IPO Index was up 11.8% year-to-date, while the S&P 500 is up 8.3%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index is down 5.4% year-to-date, while the ACWX is up 8.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and JD Health.
For the first time since early March, a major IPO is on the calendar for the coming week: kenvue is expected to raise $3.3 billion at a market cap of $40.6 billion, which would be the largest U.S. IPO since late 2021 and more than double IPO proceeds year-to-date. As usual, some small issuers may be late on the IPO calendar.
Spin-off from Johnson & Johnson, the consumer health giant kenvue offers a portfolio of well-known brands such as Tylenol and Listerine and serves over a billion people in more than 165 countries. The company is mature and highly profitable, and plans to pay a quarterly dividend with an annual yield of 3.7% at mid-term. The company has spent the last few years optimizing its business and even mentions AI among investment areas to improve its digital capabilities. Proceeds from Kenvue’s IPO and $9 billion in new debt will be paid to J&J as part of the separation.
| US IPO Calendar | |||
|---|---|---|---|
| IssuerBusiness | Transaction SizeMarket Cap | Price RangeShares submitted | TopBookrunner |
| Kenvue (KVUE) Skillman, NJ | $3,251M $40,591M | $20-$23151,204,000 | Goldman JP Morgan |
| J&J spin-off consumer health products unit. | |||
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Street research is expected for three companies in the coming week.
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Editor’s note: The summary bullet points for this article were selected by Seeking Alpha editors.
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