US IPO Weekly Roundup: Autoimmune biotech Kyverna Therapeutics is up 37% in a week of six IPOs
Prikhodov
Last week, six IPOs were priced in, plus two blank-check companies.
A major deal was not completed: Fortegra (TFG) made its $297 million offer above the expected price. The special insurer had previously attempted to go public in early 2021, but also scrapped those plans before pricing.
Biotechnology for autoimmune diseases Kyverna Therapeutics (KYTX) price was above the upwardly revised range to collect $319 million at a market cap of $971 million. Its lead candidate is an autologous CD19 CAR T-cell therapy whose underlying CAR has been licensed by the NIH. Kyverna plans to conduct two studies of this candidate in patients with lupus nephritis and has received IND approval for a Phase 1/2 study in systemic sclerosis. It has also received IND approval for Phase 2 trials in myasthenia gravis and multiple sclerosis. Kyverna led the weekly returns, closing up 37%.
American healthcare REIT (AHR) is on the low end and is expected to raise $672 million with a market cap of $1.5 billion. AHR owns a portfolio of 298 healthcare properties, primarily in the United States, and focuses primarily on medical offices, senior housing and other healthcare facilities. The REIT benefits from the aging population and the shift to outpatient care and plans to pay a dividend. It is heavily indebted after the IPO. American Healthcare REIT closed up 9%.
Based in Mexico BBB Foods (TBBB) was valued at the high end of the upwardly revised range to raise $589 million for a market cap of $2.7 billion. The company, which operates under the name Tiendas 3B, is a leader in the grocery hard discount model in Mexico, with 2,288 stores at the end of 2023 and estimated vacant space for at least 12,000 more stores. The company is indebted and high interest expenses have resulted in net losses in the past. BBB Foods closed up 9%.
Perfect moment (PMNT) offered more shares and priced at the low end to raise $6 million at a market cap of $94 million. The company produces luxury ski outerwear and accessories, swimwear and activewear and sells them both D2C and wholesale. The company operates in a growing but highly seasonal industry. Perfect Moment closed down 14%.
Drug developer Telomir Pharmaceuticals (TELO) raised $7 million at a market cap of $215 million. The Company is focused on the development and commercialization of TELOMIR-1, a novel small molecule being developed as an oral in situ therapy for human stem cells. It plans to file an IND in 3Q24 for the treatment of hemochromatosis, an age-related inflammatory disease. Telomir closed down 29%.
Gene editing biotechnology Metagenomi (MGX) was valued at the low end to earn $94 million with a market cap of $563 million. The Company is focused on developing therapies using its proprietary, comprehensive metagenomics-derived genome editing toolbox, which includes programmable nucleases, base editors, and RNA- and DNA-mediated integration systems. Target indications include liver, neuromuscular and other organ areas, although all product candidates are preclinical. Metagenomi was the worst performer, down 31%.
| 8 IPOs in the week of February 5, 2024 | |||||
|---|---|---|---|---|---|
| Issuer business | Deal size | Market capitalization at IPO | Price vs. center point | Return on the first day | Return on September 2nd |
| Kyverna Therapeutics (KYTX) | $319 million | $971 million | 22% | +36% | +37% |
| Phase 1 biotech is developing cell therapies for autoimmune diseases. | |||||
| American Healthcare REIT (AHR) | $672 million | $1,524 million | -11% | +10% | +9% |
| Healthcare REIT with 298 properties in the US and UK. | |||||
| BBB Foods (TBBB) | $589 million | $2,683 million | 13% | +9% | +9% |
| Operates more than 2,200 discount grocery stores in Mexico. | |||||
| Helix Acquisition II (HLXB) | $160 million | $205 million | 0% | +2% | +2% |
| Blank check healthcare company founded by Cormorant Asset Management. | |||||
| Legato Merger III (LEGT.U) | $175 million | $225 million | 0% | +1% | +1% |
| Blank check companies for the infrastructure, E&C, industrial and renewable energy sectors. | |||||
| Perfect Moment (PMNT) | $8 million | $94 million | -8th% | -13% | -14% |
| Luxury lifestyle brand focused on skiwear and other activewear. | |||||
| Telomir Pharmaceuticals (TELO) | $7 million | $215 million | 0% | -29% | -29% |
| Preclinical developer of an oral small molecule therapy for hemochromatosis. | |||||
| Metagenomi (MGX) | $94 million | $563 million | -6% | -31% | -31% |
| Preclinical biotechnology with metagenomic genome editing. | |||||
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| 6 submissions in the week of February 5, 2024 | |||
|---|---|---|---|
| Issuer business | Deal size | sector | Lead Underwriter |
| Invizyne Technologies (IZTC) | $17 million | materials | Public ventures |
| Development of a bioproduction platform for a variety of chemicals. | |||
| JBDI Holdings (JBDI) | $10 million | Industry | Spartan capital |
| Singapore based supplier of new and refurbished steel and plastic drums. | |||
| Wellchange Holdings (WCT) | $9 million | technology | Pacific century |
| Hong Kong-based provider of tailored software solutions for SMEs. | |||
| QQJ (QQJ) | $9 million | technology | Network 1 |
| Chinese online shopping platform connecting suppliers, businesses and consumers. | |||
| Black Hawk Acquisition (BKHAU) | $60 million | SPAC | EF Hutton |
| Blank check company that targets companies with growth potential and defensible market positions. | |||
| Vegetable house (VEG) | $5 million | technology | EF Hutton |
| Operates e-commerce platforms for plant-based consumer products. | |||
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IPO market snapshot
The Renaissance IPO Indices are market capitalization-weighted baskets of newly public companies. As of February 8, 2024, the Renaissance IPO Index was down 3.1% year-to-date, while the S&P 500 was up 4.9%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index is down 7.9% year-to-date, while the ACWX is down 1.2%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
Five small listings are currently planned for the coming week, but additional issuers could be added to the calendar as the week progresses.
Maritime tour operator Amphitrite Digital (AMDI) plans to raise $7 million at a market cap of $61 million. The company offers tours, activities and local attractions in the mainland United States and the U.S. Virgin Islands and has its own fleet of 26 luxury catamarans and motorboats in the USVI and Panama City.
Japanese real estate dealer Metros development (MTRS) plans to raise $6 million at a market cap of $364 million. The company identifies and purchases land and buildings it believes are underdeveloped and resells them to developers. As of May 31, 2023, the Company had real estate holdings valued at more than $190 million, including more than 60 material real estate holdings valued at over $1 million. The proposed IPO is only 2.0% of the outstanding base shares.
Manufacturer of powersports vehicles and motorboats Massimo Group (MAMO) plans to raise $6 million at a market cap of $186 million. Massimo Group manufactures, imports and distributes a portfolio of products including commercial vehicles, off-road vehicles, motorcycles, scooters, golf carts, motorboats and more. The proposed IPO is only 3.1% of the basic shares outstanding.
Touch screen manufacturer based in China Wetouch technology (OTCQB:WETH) could raise $24 million next week at a market cap of $82 million. The company develops, manufactures, sells and services medium to large projected capacitive touchscreens. Its touchscreens are used in a variety of industries, including financial terminals, automobiles, slot and lottery machines, and medical devices.
Marketplace for advertising contracts NOTHING (NYX) is also tentatively scheduled for next week and aims to raise $8 million at a market cap of $82 million. NYIAX's small and highly unprofitable platform uses blockchain technology to allow companies to list, buy and sell advertising and targeting campaigns.
| US IPO calendar | |||
|---|---|---|---|
| Issuer business | Deal size market capitalization | Price range shares submitted | Top bookrunners |
| Massimo Group (MAMO) Garland, TX | $6 million $186 million | 4 to $51,300,000 | Roth Cap.Craft Capital |
| Manufactures and sells power sports vehicles and motorboats. | |||
| Amphitrite Digital (AMDI) St. Thomas, U.S. Virgin Islands | $7 million $61 million | $3.50 to $4,501,750,000 | Kingswood cap. Mkts. |
| Offers maritime tours and activities in the mainland United States and the U.S. Virgin Islands. | |||
| Metros Development (MTRS) Tokyo, Japan | $6 million $364 million | $6,401,000,000 | BousteadEF Hutton |
| Buying and reselling underdeveloped properties in Japan. | |||
| NYIAX (NYX) New York, NY | $8 million $82 million | $42,106,250 | WestPark CapitalEF Hutton |
| Offers an advertising marketplace and contract management platform. | |||
| Wetouch Technology (OTCQB:WETH) Meishan, China | $24 million $82 million | $5 to $74,000,000 | WestPark CapitalCraft Capital |
| Manufactures medium to large projected capacitive touchscreens. | |||
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A street search is expected for a company in the coming week, and two blackout periods are also expiring.
IPO market snapshot
The Renaissance IPO Indices are market capitalization-weighted baskets of newly public companies. As of February 8, 2024, the Renaissance IPO Index was down 3.1% year-to-date, while the S&P 500 was up 4.9%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index is down 7.9% year-to-date, while the ACWX is down 1.2%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise 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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