US IPO Weekly Recap: IPO Pipeline Adds Another Sizable Name Amid More Small Listings

Summary

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Just one small IPO priced this past week, joined by one SPAC that began trading. Three IPOs joined the pipeline, including one that plans to raise $100 million, as well as four SPACs.

The sole pricing this week was steel framing manufacturer INNO HOLDINGS (INHD), which priced at the low end to raise $10 million at an $83 million market cap. Small and highly unprofitable, the company serves commercial, residential, and industrial customers, and its finished products and cold-formed steel members are used in a variety of building types. Unlike most US IPOs, INNO did not begin trading after pricing; it’s scheduled to debut in the week ahead. While not included below, blank check Aimei Health Technology (AFJKU) began trading on Monday after raising $60 million the prior week. It plans

1 IPO During the Week of December 4th, 2023
Issuer Business Deal Size Market Cap at IPO Price vs. Midpoint First Day Return Return at 12/08
INNO (INHD) Manufactures cold-formed steel framing for the construction industry. $10M $83M -11% n/a n/a

Offshore transport services provider Hornbeck Offshore Services (HOS) filed to raise $100 million. The company provides marine transport services in the US and Latin America using its fleet of offshore and multi-purpose vessels, which it believes is one of the largest in the industry. Hornbeck was joined by UK-based energy services provider Energys Group (EGYS.RC), which filed to raise $15 million, and Malaysian wire and cable manufacturer Linkers Industries (LNKS), which filed to raise $11 million.

Four SPACs submitted initial filings this past week. Blue Room Acquisition (IBLUU) filed to raise $200 million to target financials. Legato Merger III (LEGT.U) filed to raise $175 million to target infrastructure, engineering, construction, industrials, and renewables. FG Merger III (FGTHU.RC) filed to raise $150 million to target financial services in North America. TechyBird Acquisition (TKBDU) filed to raise $60 million to target tech and biotech.

7 Filings During the Week of December 4th, 2023
Issuer Business Deal Size Sector Lead Underwriter
Energys Group (EGYS.RC) UK-based provider of energy-saving products and services. $15M Industrials Joseph Stone
Linkers Industries (LNKS) Malaysian manufacturer and supplier of wire/cable harnesses. $11M Industrials Pacific Century Securities
Hornbeck Offshore (HOS) Provides marine transportation to the offshore oilfield and diversified non-oilfield markets. $100M Energy JP Morgan
Legato Merger III (LEGT.U) Blank check company targeting the infrastructure, E&C, industrial and renewables industries. $175M SPAC BTIG
Blue Room Acquisition (IBLUU) Blank check company led by MKM Bolsa Privada executives targeting the financial sector. $200M SPAC Maxim
FG Merger III (FGTHU.RC) Blank check company targeting the financial services industry in North America. $150M SPAC ThinkEquity
TechyBird Acquisition (TKBDU) Blank check company targeting the tech and biotech sectors. $60M SPAC Spartan Capital

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/7/2023, the Renaissance IPO Index was up 38.7% year-to-date, while the S&P 500 was up 21.3%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Kenvue (KVUE). The Renaissance International IPO Index was down 19.2% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou (OTCPK:KUASF) and Porsche (OTCPK:POAHY).

Week Ahead

Two foreign issuers are currently scheduled to price US IPOs in the week ahead, though some small deals may join the calendar late.

China-based ZKH Group (ZKH) plans to raise $66 million at a $2.8 billion market cap. The company provides MRO (materials for maintenance, repair, and operations) procurement services through two platforms, ZKH platform and GBB platform. ZKH Group served over 64,000 customers in the 12 months ended 9/30/23, with product offerings spanning 17.2 million SKUs and all major MRO product lines. The company is unprofitable, and growth slowed in the 9mo23.Bermuda-based video game creator RoyaLand (RLND) plans to raise $7 million at an $87 million market cap. The company is currently in the development phase for its royalty-themed video game, TheRoyal.Land. It has engaged a third party to complete the storyboard for TheRoyal.Land, which will begin post-IPO.

While not included below, steel framing manufacturer INNO HOLDINGS (INHD) is scheduled to begin trading in the coming week. The company raised $10 million this past week, but unlike most US IPOs, it did not begin trading the day after pricing.

U.S. IPO Calendar
Issuer Business Deal Size Market Cap Price Range Shares Filed Top Book runners
RoyaLand (RLND)Hamilton, Bermuda. Bermuda-based video game developer focused on a mobile-first MMORPG. $7M$87M $5 - $61,250,000 Revere Sec.Dominari Securities
ZKH Group (ZKH)Shanghai, China. Chinese B2B procurement platform for industrial supplies. $66M$2,752M $15.50 - $17.504,000,000 Deutsche BankChina Ren.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/7/2023, the Renaissance IPO Index was up 38.7% year-to-date, while the S&P 500 was up 21.3%. Renaissance Capital's IPO ETF tracks the index, and top ETF holdings include Airbnb and Kenvue. The Renaissance International IPO Index was down 19.2% year-to-date, while the ACWX was up 10.5%. Renaissance Capital’s International IPO ETF tracks the index, and top ETF holdings include Kuaishou and Porsche.


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