US IPO Weekly Roundup: Arm trades rise after raising nearly $5 billion in 2023’s biggest IPO so far

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Five IPOs raised a combined $5.4 billion last week, led by the blockbuster IPO of poor (POOR). Three issuers submitted initial submissions.

The largest IPO of 2023 so far, poor Priced in the upper price segment Raising $4.9 billion with a market cap of $52.9 billion. Arm is an industry leader in central processing units (CPUs) and says its energy-efficient CPUs will be in over 99% of the world’s smartphones by 2022 and estimates that approximately 70% of the world’s population will use Arm-based products. The company reported a decline in sales in its last fiscal year, largely due to problems in China, which the company expects to continue in the near future. Arm was up 25% in its debut and ended the week up 19%.

Radiopharmaceutical biotechnology RayzeBio (RYZB) has priced its larger IPO at the maximum price The reach is $311 million with a market cap of $1.1 billion. RayzeBio’s lead candidate is designed to deliver a highly potent alpha particle radioisotope to tumors that overexpress the somatostatin receptor type 2. The Company Announces a Phase 3 Registration Trial for the Treatment of Gastroenteropancreatic Neuroendocrine Tumors. RayzeBio ended the week up 33%.

Neuropsychic biotechnology Neumora Therapeutics (NMRA) has a median price of $250 million with a market cap of $2.8 billion. The Company’s lead candidate is a novel once-daily oral kappa opioid receptor antagonist being developed for the treatment of major depressive disorder. Neumora is embarking on a pivotal Phase 3 program and expects topline results in the second half of 2024. It ended the week down 4%.

Singaporean supplier of robotic cleaning equipment Simply (SPPL) has priced its downsized IPO at the low end to raise $8 million at a market cap of $84 million. Simply offers autonomous robotic cleaning equipment and related software in Singapore and has been rolled out in schools, hospitals and universities in the country. It ended the week down 7%.

Forestry company based in Macau Natural wood group (NWGL) has priced its downsized IPO at the low end to raise $7 million at a market cap of $148 million. The company is a vertically integrated forestry company with operations in Peru and produces a range of products such as logs, decking, flooring and lumber. Nature Wood Group ended the week down 4%.

5 IPOs in the week of September 11, 2023
Issuer business	Deal size	Market capitalization at IPO	Price vs. center point	Return on the first day	Return on September 15th
RayzeBio (RYZB)	$311 million	$1,112 million	6%	+33%	+33%
Phase 3 biotechnology developing radiopharmaceutical therapies for cancer.
Arm (ARM)	$4,871 million	$52.914 million	4%	+25%	+19%
UK-based chip designer for smartphones and other markets.
Nature Wood Group (NWGL)	$7 million	$148 million	-10%	+7%	-4%
Forestry company based in Macau with branches in Peru.
Neumora Therapeutics (NMRA)	$250 million	$2,760 million	0%	-4%	-4%
Phase 3 biotechnology develops therapies for neuropsychiatric indications.
Simple (SPPL)	$8 million	$84 million	17%	-7%	-7%
Offers industrial robotic cleaning equipment in Singapore.

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European shoemaker Birkenstock Holding (BIRK) led the week’s pipeline additions, filing to raise an estimated $750 million. Known for its luxury sandals, Birkenstock develops and produces 100% of its products in the EU through vertically integrated manufacturing operations.

The remaining new additions were small issuers. Hypogonadism-focused biotechnology Acesis Holdings (ACSB) filed to raise $7 million at a market cap of $81 million and is a Hong Kong-based manufacturer of hair styling products Fenbo Holdings (FEBO) filed to raise $5 million at a market cap of $55 million.

3 submissions in the week of September 11, 2023
Issuer business	Deal size	sector	Lead Underwriter
Acesis (ACSB)	$7 million	Healthcare	Boustead
Preclinical biotechnology is developing non-hormonal oral therapies for low testosterone levels in men.
Birkenstock (BIRK)	$750 million	Consumer Discretionary	Goldman
European shoe manufacturer known for its luxury sandals.
Fenbo Holdings (FEBO)	$5 million	Consumer Discretionary	EF Hutton
Electric hair styling products manufacturer based in Hong Kong.

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There are currently five deals on the calendar for the coming week, led by the IPO market’s first US tech unicorns in nearly two years.

After the range increase on Friday, food delivery platform Instacart (MERCHANDISE) plans to raise $638 million at a market cap of $9.6 billion. As of June 2023, the company connected 7.7 million customers to 600,000 independent shoppers and its retail partners include 1,400 banners representing over 80,000 stores. While facing increasing competition from DoorDash and others, Silicon Valley-based Instacart increased its revenue by 31% in the first half of 2023 while achieving profitability.

Based in Boston Klaviyo (KVYO) plans to raise $499 million at a market cap of $8.0 billion. The SaaS company provides a customer engagement platform that enables companies to transform first-party data into actionable insights in real time. It also allows marketing messages to be managed across multiple channels, although the company currently relies on third parties to deliver messages. Klaviyo is growing quickly and has positive cash flow. The company serves over 130,000 customers, primarily in retail.

The remaining offers of the week are small. Israeli 3D printing company XJet (XJET) plans to raise $6 million at a market cap of $77 million. Small and highly unprofitable, XJet offers 3D printing technologies based on its patented nano-particle jetting process. Tentatively planned for next week, leftovers Player Pakistan (GPAK) could raise $8 million at a market cap of $115 million, and it is a Chinese technology company Global Mofy Metaverse (GMM) can raise $6 million at a market cap of $130 million.

US IPO calendar
Issuer business	Deal size market capitalization	Price range shares submitted	Top bookrunners
Instacart (MERCHANDISE) San Francisco, California	$638 million $9,612 million	$28 to $30 22,000,000	Goldman JP Morgan
Operates a food delivery platform.
Klaviyo (KVYO) Boston, MA	$499 million $7,974 million	$25 to $27 19,200,000	Goldman Morgan Stanley
Offers a software platform that automates digital marketing campaigns.
XJet (XJET) Rehovot, Israel	$6 million $77 million	$4 1,600,000	Aegis cap.
Manufactures and sells 3D printers for metal and ceramic end-use parts.
Gamers Pakistan (GPAK) Henderson, NV	$8 million $115 million	4-5$ 1,700,000	West Park Capital
Pre-revenue organizer of e-sports events in Pakistan.
Global Mofy Metaverse (GMM) Beijing, China	$6 million $130 million	$4.50 – $5.50 1,200,000	Prime number. Chapter
Chinese virtual content and digital marketing services provider.

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The blocking periods for two companies will expire next week. IPO market snapshot

The Renaissance IPO Indices are market capitalization-weighted baskets of newly public companies. As of September 14, 2023, the Renaissance IPO Index was up 33.5% year-to-date, while the S&P 500 was up 18.7%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index fell 15.4% year-to-date, while the ACWX gained 9.2%. 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.