Andrey Popov
Seven IPOs were priced last week, led by three that raised more than $100 million.
After conditions were revised upwards earlier this week, CG Oncology (CGON) continued to increase supply and set a price above the range to capture $380 million with a market cap of $1.3 billion. Its sole clinical agent is initially in development for a subclass of bladder cancer and is currently in an ongoing Phase 3 trial. Topline data is expected by the end of 2024. If successful, the biotech company anticipates that this study could serve as the basis for a BLA submission. CG Oncology gained 96% on the first day and ended the week up 84%.
ArriVent BioPharma (AVBP) plans to raise $150 million at a market cap of $585 million. The biotech's sole clinical candidate is a kinase inhibitor being developed for broad use in non-small cell lung cancer (NSCLC). Series of epithelial growth factor receptor (EGFRm) mutations. The drug is currently being evaluated in multiple studies, including a pivotal Phase 3 trial with topline data in 2025. ArriVent finished up 11%.
In the second IPO attempt BrightSpring Health Services (BTSG) plans to raise $880 million at a market cap of $3.4 billion. The company provides a platform for home and community-based healthcare services. The focus is on providing services to complex patients, particularly seniors and specialty patients, which include behavioral health patients. The company is very large and is showing decent growth, even though it is debt-financed. BrightSpring closed down 15%.
Four very small Chinese issuers also began trading in the U.S. last week, all raising $10 million or less: online marketing companies Haoxi health technology (HAO), clothing trimmings distributor J-Long Group (JL), manufacturer of toner cartridges Planet Image International (YIBO) and security companies SU Group investments (SUGP). Haoxi Health Technology and J-Long Group were the only ones to solve the above problem.
| 7 IPOs in the week of January 22, 2024 | |||||
|---|---|---|---|---|---|
| Issuer business | Deal size | Market capitalization at IPO | Price vs. center point | Return on the first day | Return on January 26th |
|
J-Long Group (JL) |
$7 million | $157 million | 0% | +49% | +101% |
| Hong Kong based distributor of reflective and non-reflective clothing trims. | |||||
|
CG Oncology (CGON) |
$380 million | $1,292 million | 12% | +96% | +84% |
| Phase 3 biotech is developing an oncolytic immunotherapy for bladder cancer. | |||||
|
Haoxi health technology (HAO) |
$10 million | $128 million | -11% | +32% | +32% |
| Provides online marketing solutions in China. | |||||
|
ArriVent BioPharma (AVBP) |
$175 million | $610 million | 0% | +11% | +11% |
| Phase 3 biotech is developing a novel kinase inhibitor for EGFR-mutant lung cancer. | |||||
|
SU group (SUGP) |
$5 million | $53 million | -11% | +0% | -12% |
| Provides safety-related engineering services in Hong Kong. | |||||
|
BrightSpring Health (BTSG) |
$693 million | $2,666 million | -21% | -15% | -15% |
| Provides home and community health services. | |||||
|
Planet image (THEY ARE) |
$5 million | $216 million | -11% | -30% | -32% |
| Chinese manufacturer of toner cartridges. | |||||
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| 3 submissions in the week of January 22, 2024 | |||
|---|---|---|---|
| Issuer business | Deal size | sector | Lead Underwriter |
|
APRINOIA Therapeutics ((YOU OPEN)) |
$50 million | Healthcare | Tiger Broker |
| Phase 3 biotech develops diagnostics and treatments for neurodegenerative diseases. | |||
|
Semidux (SHE) |
$17 million | technology | EF Hutton |
| Chinese provider of metaverse computing infrastructure products and services. | |||
|
Iodrei (IOTR) |
$19 million | technology | Eddie Securities |
| Maritime connectivity and digitalization solutions provider based in Singapore. | |||
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There are currently three listings planned for the coming week, but additional issuers may be added to the calendar throughout the week.
Leading sporting goods and clothing manufacturer Amer Sports (AS) plans to raise $1.7 billion at a market cap of $8.3 billion. The Finland-based company's portfolio includes major brands such as Arc'teryx, Salomon, Wilson and Louisville Slugger and its products are sold in over 100 different countries, including over 300 of its own retail stores. Amer is highly profitable and has strong revenue growth despite being heavily leveraged and operating in a very competitive industry.
UK based luxury outerwear brand Perfect moment (PMNT) plans to raise $8 million at a market cap of $101 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.
Cell therapy biotechnology FibroBiologics (FBLG) will list directly on the Nasdaq next week. FibroBiologics was spun off from former parent company FibroGenesis in 2021 and is focused on developing fibroblast-based therapies for patients suffering from chronic diseases with significant unmet medical needs, including degenerative disc disease, multiple sclerosis (MS), wound healing and certain cancers. The company has completed a Phase 1 trial for refractory MS in Mexico and plans to submit an IND to the FDA for a Phase 2 trial.
| US IPO calendar | |||
|---|---|---|---|
| Issuer business | Deal size market capitalization | Price range shares submitted | Top bookrunners |
|
Amer Sports (AS) Helsinki, Finland |
$1,700 million $8,345 million |
$16 to $18 100,000,000 |
Goldman BofA |
| Sells clothing and sports equipment under brands such as Arc'teryx, Salomon and Wilson. | |||
|
FibroBiologics (FBLG) Houston, Texas |
$87 million $644 million |
$18 4,806,226 |
|
| Phase 1 biotechnology developing fibroblast-based therapies for chronic diseases. | |||
|
Perfect moment (the floor) London, United Kingdom |
$8 million $101 million |
6-7$ 1,232,000 |
ThinkEquity Laidlaw (UK) |
| Luxury lifestyle brand focused on skiwear and other activewear. | |||
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Four blocking periods will expire next week.
IPO market snapshot
The Renaissance IPO Indices are market capitalization-weighted baskets of newly public companies. As of January 25, 2024, the Renaissance IPO Index was down 8.3% year-to-date, while the S&P 500 was up 2.7%. 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 9.2% year-to-date, while the ACWX is down 1.8%. 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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