One small issuer started buying and selling this previous week. Six small IPOs submitted preliminary filings.
The week’s information was led by J&J’s (JNJ) shopper well being unit Kenvue (KVUE), which set phrases for its $3.3 billion itemizing on Monday. The firm’s IPO can be the biggest for US markets in over a 12 months and would greater than double IPO proceeds YTD. Kenvue is anticipated to start buying and selling within the week forward.
Fitness tools model Interactive Strength (TRNR) priced on the excessive finish to boost $12 million at a $118 million market cap. Doing enterprise as Forme, the corporate sells dwelling health tools and affords private coaching courses, with its linked health mirror on the core of its choices. The firm may be very small and extremely unprofitable. Interactive Strength completed down 17%.
Six IPOs submitted preliminary filings this previous week. Nature Wood Group (NWGL), a Macau-based forestry firm with operations in Peru, filed to boost $30 million. Chinese provide chain administration supplier Majestic Ideal Holdings (MJID) filed to boost $17 million at a $62 million market cap. Hong Kong-based brokerage Solowin Holdings (SWIN) filed to boost $17 million. Chinese workplace tools retailer EShallGo (EHGO) filed to boost $15 million at a $116 million market cap. Plant-based snack model BranchOut Food (BOF) filed to boost $12 million. Chinese medical product maker WORK Medical Technology Group (WOK) filed to boost $10 million.
|6 Filings During the Week of April 24th, 2023|
|Majestic Ideal Holdings (MJID)||$17M||Industrials||Univest Sec.|
|Provides provide chain administration providers to attire firms in China.|
|Solowin (SWIN)||$17M||Financials||EF Hutton|
|Hong Kong-based securities brokerage and funding advisory agency.|
|EShallGo (EHGO)||$15M||Consumer Discretionary||Tiger Brokers|
|Sells and leases workplace tools in China.|
|WORK Medical Technology (WOK)||$10M||Health Care||Univest Sec.|
|Chinese producer of disposable medical merchandise.|
|Nature Wood Group (NWGL)||$30M||Materials||Orientiert XYZ Securities|
|Vertically-integrated forestry firm with operations in Peru.|
|BranchOut Food (BOF)||$12M||Consumer Staples||Alexander Cap.|
|Sells branded plant-based dehydrated meals.|
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public firms. As of 4/27/2023, the Renaissance IPO Index was up 11.8% year-to-date, whereas the S&P 500 was up 8.3%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and prime ETF holdings embrace Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 5.4% year-to-date, whereas the ACWX was up 8.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and prime ETF holdings embrace Porsche and JD Health.
For the primary time since early March, there’s a big IPO on the calendar for the week forward: Kenvue is slated to boost $3.3 billion at a $40.6 billion market cap, which might be the biggest US IPO since late 2021 and would greater than double IPO proceeds year-to-date. As normal, some small issuers could be a part of the IPO calendar late.
Being spun out of Johnson & Johnson, shopper well being large Kenvue affords a portfolio of well-known manufacturers like Tylenol and Listerine and serves over a billion individuals throughout greater than 165 international locations. The firm is mature and extremely worthwhile, and it plans to pay a quarterly dividend with a 3.7% annualized yield on the midpoint. The firm has spent the final a number of years optimizing its enterprise and even mentions AI among the areas of investment for enhancing its digital capabilities. Kenvue’s IPO proceeds, in addition to $9 billion of latest debt issuance, might be paid to J&J as a part of the separation.
|U.S. IPO Calendar|
|IssuerBusiness||Deal MeasurementMarket Cap||Price RangeShares Filed||TopBookrunners|
|Kenvue (KVUE) Skillman, NJ||$3,251M$40,591M||$20 – $23151,204,000||GoldmanJP Morgan|
|Consumer well being merchandise unit spun out of J&J.|
Street analysis is anticipated for 3 firms within the week forward.
Editor’s Note: The abstract bullets for this text had been chosen by Seeking Alpha editors.