ismagilov
Following April’s stream of micro-cap activity, the month of May began off with two giant IPOs, Kenvue (KVUE) and ACELYRIN (SLRN). The offers raised a mixed $4.3 billion, or practically two-thirds of IPO proceeds year-to-date, and each delivered stable buying and selling of their debuts.The latest spin-off to take on the IPO market, J&J’s shopper well being unit Kenvue upsized and priced barely above the midpoint to boost $3.8 billion at a $42.0 billion market cap. Mature and extremely worthwhile, the corporate affords a portfolio of well-known manufacturers like Tylenol and Listerine and serves over a billion individuals throughout greater than 165 international locations. Kenvue plans to pay a quarterly dividend with a 3.6% annualized yield on the provide value. The IPO proceeds in addition to $9 billion of latest debt issuance will probably be paid to J&J as a part of the separation. Kenvue completed up 20%.Launching on Monday, immunology biotech ACELYRIN additional upsized and priced on the excessive finish to boost $540 million at a $1.8 billion market cap, the most important IPO from a biotech since February 2021. Its lead candidate was licensed from Affibody in late 2021 and is at present in Phase 2b/3 trials for hidradenitis suppurativa (HS), psoriatic arthritis (PsA), and uveitis. The firm expects topline information for its HS trial within the 2H23, and PsA and uveitis in mid-2024. ACELYRIN completed up 31%.Two clean verify IPOs additionally priced this previous week: Asia-focused Golden Star Acquisition (GODNU) and deep tech-focused Alchemy Investments Acquisition 1 (ALCYU).
| 4 IPOs During the Week of May 1st, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/05 |
| ACELYRIN (SLRN) | $540M | $1,770M | 6% | +31% | +31% |
| Late-stage biotech creating in-licensed therapies for inflammatory ailments. | |||||
| Kenvue (KVUE) | $3,802M | $42,045M | 2% | +22% | +20% |
| Consumer well being merchandise unit spun out of J&J. | |||||
| Golden Star Acquisition (GODNU) | $60M | $78M | 0% | +2% | +2% |
| Blank verify firm concentrating on companies with strategic significance to Asian markets. | |||||
| Alchemy Investments Acq. (ALCYU) | $100M | $141M | 0% | +1% | +1% |
| Blank verify firm concentrating on deep expertise with a give attention to information analytics. | |||||
| 3 Filings During the Week of May 1st, 2023 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Prospect Energy Holdings (AMGSU) | $300M | SPAC | EF Hutton |
| Blank verify firm concentrating on the clear vitality trade in APAC and Canada. | |||
| WeBuy Global (WBUY) | $16M | Technology | Univest Sec. |
| Provides an e-commerce platform for grocery and journey in Singapore and Indonesia. | |||
| ZEROSPO (ZSPO) | $17M | Consumer Discretionary | Boustead |
| Owns, operates, and franchises medical and leisure salons in Japan. | |||
One firm is scheduled to checklist within the week forward, though it’s not eligible for inclusion in our IPO stats. However, different issuers might be a part of the calendar early within the week following the robust debut of J&J spin-off Kenvue (KVUE).
Projection display screen maker Strong Global Entertainment (SGE) plans to boost $8 million at a $40 million market cap. Being spun out of FG Group (FGH), the corporate manufactures giant format projection screens and gives associated services, primarily to cinemas, theme parks, academic establishments, and related venues. The firm is worthwhile and rising, although its prime 10 clients accounted for over half of income in 2022.
Street analysis is predicted for 2 firms within the week forward, and 4 lock-up intervals will probably be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public firms. As of 5/4/2023, the Renaissance IPO Index was up 11.2% year-to-date, whereas the S&P 500 was up 6.4%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and prime ETF holdings embody Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 6.3% year-to-date, whereas the ACWX was up 8.4%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and prime ETF holdings embody Porsche and JD Health.
Editor’s Note: The abstract bullets for this text had been chosen by Seeking Alpha editors.