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The 1Q22 IPO market ended with another quiet week. Only two SPACs for the price.
The most notable news came from the IPO pipeline. Four IPOs and two direct listings filed initial filings, led by the spin-off of AIG SAFG retirement provision (SAFG), which could raise up to $3 billion. Four issuers also updated their filings with updated financial data, including a billion-dollar deal Bausch + Lomb (BLCO).
For more information on activity over the past quarter and the outlook for the future, read Renaissance Capital’s US IPO Market Review for 1Q22.
The only awards of the week came from Energie SPAC Redwood acquisition (RWODU) and growth-oriented SPAC Metal Sky Star acquisition (MSKY), both of which grossed $100 million.
Although not counted below, two other deals hit the market: Railway Safety Micro-Cap rail vision (RVSN) has raised $16 million in warrant IPO and nano-cap Expo360 (XPON) raised $15 million at a market cap of less than Renaissance Capital’s $50 million mark.
The pipeline was somewhat active during the week. SAFG (core bridge) (SAFG) filed for an estimated $3 billion IPO. Chinese provider of IoT solutions Wuxin Technology Holdings (WXT) submitted to raise $41 million, early-stage alfalfa producer African agriculture (AAGR) applied to raise $40 million and facility providers Primech stocks (PMEC) applied to raise $23 million. Focused on healthcare Strawberry Fields REIT (STRW) and State Licensed Cannabis Provider light green (BGXX) both applied for direct listing on Nasdaq.
Two SPACs also submitted initial filings. A SPAC II acquisition (ASCBU) requested to raise $185 million to target new sectors of the economy and Chenghe acquisition (CHEA.U) submitted to raise $100 million to target fintech in Asia.
| 8 submissions in the week of March 28, 2022 | |||
|---|---|---|---|
| issuer business | deal size | sector | lead underwriter |
| Acquisition of Chenghe (CHEA.U) | 100 million dollars | SPAC | MorganStanley |
| Blank check company targeting fintech in Asia. | |||
| African Agriculture (AAGR) | $40M | consumer goods | Spartan securities |
| US-based alfalfa producer operating in Senegal. | |||
| Primech Holdings (PMEC) | 23 million dollars | Industry | tiger broker |
| Provides facility cleaning and maintenance services in Singapore and Malaysia. | |||
| Light green (BGXX) | n/aM | health care | |
| Federally licensed supplier of cannabis products for research use. | |||
| Wuxin Technology Holdings (WXT) | $41M | technology | Prime number. Guy. |
| Develops and sells IoT connectivity components in China. | |||
| A SPAC II acquisition (ASCBU) | $185 million | SPAC | maxim |
| Blank check company targeting new economy sectors in North America, Europe and Asia. | |||
| SAFG (Core Bridge) (CRBG) | 3,000 million dollars | finance | JP Morgan |
| Spin-off of AIG’s annuity and life insurance businesses. | |||
| Strawberry Fields REIT (STRW) | $14M | property | |
| Triple net lease REIT with a portfolio of healthcare properties. | |||
There are currently no IPOs scheduled for the coming week, although some SPACs could be added to the calendar later in the week.
While the IPO market has been noticeably quiet, a number of deals are keeping the pipeline active heading into the second quarter. AIG Spin-off SAFG Pension Services (Corebridge) (CRBG) filed an initial filing last week, and a handful recently updated their prospectuses with 2021 financials, including the eye care giant Bausch + Lomb (BLKO).
Blocking periods will expire for up to six companies in the coming week.
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 3/31/2022, the Renaissance IPO Index was down 23.9% year-to-date, while the S&P 500 was down 4.6%. Renaissance Capital’s IPO ETF (NYSE:IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index is down 21.9% year-to-date, while the ACWX is down 5.3%. Renaissance Capital’s International IPO ETF (NYSE:IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
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Publisher’s Note: The summary points for this article were selected by Seeking Alpha editors.
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