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Five IPOs debuted this week and raised over $1.3 billion in proceeds. One SPAC also listed. One name that did not join the fray was aluminum company Novelis (NVL), which called off its planned $878 million IPO at the eleventh hour. Three IPOs and four SPACs submitted initial filings this past week.
Hospital billing platform Waystar (WAY) priced at the midpoint to raise $968 million at a $3.7 billion market cap. Waystar provides cloud payments software payments for healthcare providers. The company currently serves approximately 30,000 clients, representing approximately one million distinct providers practicing across a variety of care sites. In 2023, Waystar facilitated over 5 billion healthcare payments transactions, including over $1.2 trillion in gross claims volume, spanning approximately 50% of patients in the US. The company is operating in a large market and commands a 109% dollar-based net retention rate, but is highly leveraged. It finished down 4%.
Location-sharing mobile app Life360 (LIF) raised $155 million at a $2.3 billion market cap in its Nasdaq uplisting. The company’s core offering is the Life360 mobile app, which includes features like communications, driving safety, digital safety, and location sharing, and operates under a “freemium” model. Its suite of product and service offerings are system and platform-agnostic. As of March 31, 2024, there were approximately 66.4 million MAUs and 1.9 million global paying groups, or “circles,” on the Life360 Platform. The company is also listed on the Australian Securities Exchange. Life360 finished up 1%.
CNS disorder biotech Rapport Therapeutics (RAPP) priced at the midpoint to raise $136 million at a $633 million market cap. Its most advanced candidate has completed Phase 1 trials in healthy adults and is expected to enter a Phase 2a proof-of-concept trial in drug-resistant focal epilepsy in mid-2024, with topline results expected in mid-2025. The company believes the candidate also has therapeutic potential in peripheral neuropathic pain and bipolar disorder. It finished up 22%.
Israeli glass film manufacturer Gauzy (GAUZ) priced its upsized IPO at the low end to raise $75 million at a $341 million market cap. Gauzy provides a variety of PDLC and SPD films which are laminated or retrofitted onto glass. The films can dim light, or show transparent displays. Major end markets for Gauzy include the automotive, aerospace, and construction sectors. The company grew its revenue 59% in 2023 but remains unprofitable with a cash flow loss. Gauzy finished down 7%.
Electric bike retailer Fly-E Group (FLYE) priced its downsized IPO at the low end to raise $9 million at a $97 million market cap. It sells its motorcycle, e-bike, and e-scooter products online and through retailers in the US and Canada. The company is profitable, and growing fast, but competes with larger and more established players. Fly-E Group finished flat.
Blank check Chenghe Acquisition II (CHEB.U) raised $75 million to target businesses in, or with a focus on, Asian markets.
| 6 IPOs During the Week of June 3rd, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 06/07 |
| $136M | $633M | 0% | +22% | +22% | |
| Phase 2-ready biotech developing small molecule therapies for CNS disorders. | |||||
| $155M | $2,304M | 0% | +0% | +1% | |
| Provides a location sharing mobile app targeted to families. | |||||
| $75M | $103M | 0% | +0% | +0% | |
| Blank check company targeting businesses in or with a focus on Asian markets. | |||||
| $9M | $97M | -11% | +20% | +0% | |
| Makes and sells electric bikes, motorcycles, and scooters. | |||||
| $968M | $3,698M | 0% | -4% | -4% | |
| Provides cloud-based revenue management software for the healthcare industry. | |||||
| $75M | $341M | -6% | -3% | -7% | |
| Israel-based manufacturer of smart glass films. | |||||
Three IPOs submitted initial filings this past week. Phase 3-ready inflammation biotech Alumis (ALMS) filed to raise $100 million. Breathe BioMedical (BRTH), a Canadian developer of a diagnostics device for breast cancer, filed to raise $12 million. China-based parking equipment provider UEOPLE Technology (UEOP) filed to raise $9 million.
Four SPACs also submitted initial filings this past week. EQV Group-backed EQV Ventures Acquisition (EQVU) filed to raise $350 million to target the energy sector. GigCapital7 (GIGGU), led by semiconductor veteran Avi Katz, filed to raise $250 million. M3-Brigade Acquisition V (MBAV.U), led by turnaround veteran Mohsin Meghji, filed to raise $250 million to target energy in North America. Rising Dragon Acquisition (RDACU) filed to raise $50 million to target small-cap businesses.
| 7 Filings During the Week of June 3rd, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Alumis (ALMS) |
$100M | Health Care | Morgan Stanley |
| Phase 3-ready biotech developing kinase inhibitors for immune-mediated diseases. | |||
|
Breathe BioMedical (BRTH) |
$12M | Health Care | Maxim |
| Canadian medical technology company developing a breath test for breast cancer. | |||
|
EQV Ventures Acquisition (EQVU) |
$350M | SPAC | BTIG |
| Blank check company backed by EQV Group targeting the energy sector. | |||
|
GigCapital7 (GIGGU) |
$250M | SPAC | Spartan Capital |
| Blank check company led by semiconductor veteran Avi Katz. | |||
|
Rising Dragon Acquisition (RDACU) |
$50M | SPAC | Lucid Capital Markets |
| Blank check company targeting small-cap businesses. | |||
|
UEOPLE Technology (UEOP) |
$9M | Technology | Tiger Brokers |
| Provides intelligent parking equipment and related products in China. | |||
| $250M | SPAC | Cantor Fitz. | |
| Blank check company led by turnaround veteran Mohsin Meghji targeting energy in North America. | |||
Two sizable IPOs are scheduled for the week ahead.
Precision medicine company Tempus AI (TEM) plans to raise $400 million at a $6.2 billion market cap. The company provides its Tempus Platform, which includes proprietary software and data pipelines to enable development of more personalized therapies. Highly unprofitable but growing, Tempus’ offerings have been used by approximately 95% of the largest public pharmaceuticals, and its clinical next-generation sequencing volume in oncology rose nine-fold from 2018 to 2023.
Australia-listed biotech Telix Pharmaceuticals (TLX) plans to raise $202 million at a $4.2 billion market cap. Telix is focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals, with a pipeline of candidates across various oncology indications. Its lead product, Illuccix, is a commercially available imaging agent for prostate cancer that has generated about $550 million in sales since its commercial launch in April 2022.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
|
North Melbourne, Australia |
$202M $4,237M |
$11.87 17,000,000 |
Jefferies Morgan Stanley |
| Commercial-stage Australian biotech developing therapeutic and diagnostic radiopharmaceuticals. | |||
|
Chicago, IL |
$400M $6,204M |
$35 – $37 11,100,000 |
Morgan Stanley JPMorgan |
| Provides data and analytics tools for precision medicine. | |||
Street research is expected for four companies in the week ahead, and one lock-up period will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 6/6/2024, the Renaissance IPO Index was up 6.5% year-to-date, while the S&P 500 was up 12.9%. 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 was down 0.8% year-to-date, while the ACWX was up 7.6%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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