Brilliant buddy
Three IPOs and two SPACs debuted this week as the pipeline got a boost from a flurry of initial filings.
Oncology Biotechnology CARGO Therapeutics (CRGX) is at the lower end of the range, raising $281 million with a market capitalization of $611 million. The biotech’s lead program is an autologous CD22 CAR T cell candidate, the underlying CAR of which the company has exclusively licensed from the National Cancer Institute. Last August, CARGO launched a potentially pivotal Phase 2 trial in relapsed or refractory large B-cell lymphoma. Interim results are expected for 2025. The company ended the week down 3%.
Reinsurers and specialty insurers Hamilton group (HG) was below range to raise $225 million at a market cap of $1.7 billion. The Company operates primarily through subsidiaries in Bermuda and Europe and offers a range of insurance products worldwide, including casualty and specialty insurance Insurance and reinsurance. Hamilton has steadily improved its combined ratio, even though it remains historically high, and the agreement with Two Sigma makes the business even more complex. Hamilton Group ended the week flat.
Cross-border logistics provider Globavend (GVH) is at the lower end of the range and is expected to raise $6 million at a market cap of $59 million. The company provides cross-border logistics services from Hong Kong to Australia and New Zealand, and its customers are mainly B2C e-commerce merchants. Globavend ended the week down 53%.
Two SPACs priced this week: Adopting agricultural and natural solutions (ANSCU) has raised $300 million to advance the decarbonization of agriculture AI transport acquisition (AITRU) has raised $60 million to use AI in transportation.
| 5 IPOs in the week of November 6, 2023 | |||||
|---|---|---|---|---|---|
| IssuerBusiness | DealSize | IPO by market capitalization | Price vs. mean | First day of return | On November 10th returned |
| AI Transportation Acq. (AITRU) | $60 million | $79 million | 0% | +2% | +2% |
| Blank check company targeting the AI transportation industry. | |||||
| Ag & Nat Solutions Acq. (ANSCU) | $300 million | $375 million | 0% | +1% | +1% |
| Blank check company backed by Riverstone and Impact Ag focused on decarbonization in agriculture. | |||||
| Hamilton Group (HG) | $225 million | $1,696 million | -12% | +0% | +0% |
| Reinsurance and specialty insurance provider based in Bermuda. | |||||
| CARGO Therapeutics (CRGX) | $281 million | $611 million | -6% | -3% | -3% |
| Phase 2 biotech is developing CAR T-cell therapies for hematological cancers. | |||||
| Globavend (GVH) | $6 million | $59 million | -11% | -36% | -53% |
| Provides cross-border logistics and shipping services. | |||||
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Six IPOs, one direct listing and one SPAC submitted initial applications last week. Chinese EV brand ZEEKR (ZK) led the pack, applying to raise an estimated $500 million, followed by the specialty insurer Fortegra (TFG), which has filed to raise $100 million. A number of small deals also came into the pipeline. Vaccine developer Sequoia vaccines (SQVI) filed to raise $20 million. Japanese EV dealer HW Electro (HWEP) and Malaysian consulting service provider QMIS TBS Capital Group (QMIX) have both filed to raise $17 million each. Maritime tour operator Amphitrite Digital (AMDI) filed to raise $10 million at a market cap of $81 million and cell therapy biotechnology FibroBiologics (FBLG) has applied for a direct listing on Nasdaq. SPAC Sichuan WB Technology (WMBT) filed to raise $70 million for companies in China and the APAC region.
| 8 submissions in the week of November 6, 2023 | |||
|---|---|---|---|
| IssuerBusiness | DealSize | sector | Lead Underwriter |
| QMIS TBS Capital Group (QMIX) | $17 million | Industry | Pacific Century Securities |
| Malaysia-based consulting and software development services provider. | |||
| ZEEKR (ZK) | $500 million | Consumer Discretionary | Goldman |
| The premium electric vehicle brand emerged from the Chinese car manufacturer Geely. | |||
| Fortegra ((TFG)) | $100 million | Finance | Goldman |
| Specialist insurer with a focus on niche lines of business and fee-based services. | |||
| HW Electro (HWEP) | $17 million | Consumer Discretionary | Univest Sec. |
| Japanese electric light commercial vehicle retailer. | |||
| Sichuan WB Technology (WMBT) | $70 million | SPAC | |
| Blank check company for businesses in China and APAC. | |||
| Amphitrite Digital (AMDI) | $10 million | Consumer Discretionary | Maxim |
| Offers maritime tours and activities in the mainland United States and the U.S. Virgin Islands. | |||
| FibroBiologics (FBLG) | $0 million | Healthcare | |
| Phase 1 biotechnology developing fibroblast-based therapies for chronic diseases. | |||
| Sequoia vaccines (SQVI) | $20 million | Healthcare | ThinkEquity |
| Phase 1 biotech is developing a vaccine against recurrent urinary tract infections and small molecules against cancer. | |||
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Three initial public offerings are currently planned for next week, but other small issuers could join later.
Based in Hong Kong DDC company (DDC) plans to raise $45 million at a market cap of $226 million. DDC began as an online recipe platform and has since shifted to selling prepared meals under the DayDayCook brand as well as private label items. The company follows an omnichannel sales strategy that includes several large stores such as 7/11 and Carrefour. Sales growth was weighed down by China’s zero-COVID policy in 2022, but accelerated again in the first half of 2023.
Remnants Shimmick (SHIM) is expected to raise $50 million at a market cap of $333 million. The company specializes in public water infrastructure, including dams, reservoirs, water treatment and desalination plans. The project backlog is more than $1 billion, but is subject to cancellation and adjustment.
Remnants Sports signing day (SGN) plans to raise $8 million at a market cap of $58 million. Signing Day Sports provides a digital platform that helps student-athletes get discovered and recruited by coaches and recruiters across the country. The company is very small and highly unprofitable.
| US IPO calendar | |||
|---|---|---|---|
| IssuerBusiness | Deal SizeMarket Cap | Price range shares filed | TopBookrunners |
| Signing Day Sports (SGN) Scottsdale, AZ | $8 million $58 million | 4 to $61,500,000 | Boustead |
| Operates a recruiting platform for student-athletes. | |||
| DDC Enterprise (DDC) Hong Kong, China | $45 million $226 million | $9.50 – $11,504,250,000 | CMBIBenchmark |
| Sells prepared foods and operates a recipe-sharing platform in China. | |||
| Shimmick (SHIM) Irvine, CA | $50 million $333 million | $10 to $124,550,000 | Roth cap. |
| California-based construction company specializing in public water infrastructure. | |||
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A street search is expected for three companies, and the blocking periods are expiring for two companies.
IPO market snapshot
The Renaissance IPO Indices are market capitalization-weighted baskets of newly public companies. As of November 9, 2023, the Renaissance IPO Index was up 24.1% year-to-date, while the S&P 500 was up 14.8%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Palantir Technologies (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index fell 19.8% year-to-date, while the ACWX gained 6.1%. 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 bullet points for this article were selected by Seeking Alpha editors.
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