After ending October on shaky footing, the IPO market kicked off November with a fairly quiet week. Three new issuers began trading, two of which qualified for inclusion in our stats, while one deal was pushed back (SHIM). Four small Asia-based companies submitted initial filings.
In other notable news, reinsurer Hamilton Group (HG) launched its $255 million US IPO, with pricing slated for the week ahead. Healthcare billing platform Waystar (WAY), which was also eligible to launch this past week, is reportedly delaying its IPO until December at the earliest.
Biotech Lexeo Therapeutics (LXEO) priced at the low end to raise $100 million at a $282 million market cap. The company is focused on advancing in-licensed gene therapies for neurological and cardiovascular diseases. Its two lead candidates are currently being evaluated in Phase 1/2 trials, with interim data from both expected in mid to late 2024. Lexeo stumbled in its debut amid more challenging market conditions, finishing Friday down 9% from offer.
Hong Kong-based tech services provider Alpha Technology Group (ATGL) priced at the low end to raise $7 million at a $60 million market cap, and finished the week up 47%. While not included in the table below, Canadian mortgage broker Pineapple Financial (PAPL) priced at the low end to raise $4 million at a $29 million market cap, and finished down 54%.
| 2 IPOs During the Week of October 30th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | DealS ize | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 11/03 |
| Alpha Technology Group (ATGL) | $7M | $60M | -11% | +10% | +47% |
| Provides software development and other services in Hong Kong. | |||||
| Lexeo Therapeutics (LXEO) | $100M | $282M | -21% | -9% | -9% |
| Phase 1 biotech developing gene therapies for cardio and neuro diseases. | |||||
| 4 Filings During the Week of October 30th, 2023 | |||
|---|---|---|---|
| Issuer Business | DealSize | Sector | Lead Underwriter |
| Neo-Concept International (NCI) | $9M | Consumer Discretionary | Revere Sec. |
| Hong Kong-based apparel retailer and supply chain services provider. | |||
| Ten-League International (TLIH) | $32M | Industrials | Eddid Securities |
| Singapore-based provider of heavy equipment and engineering consultancy services. | |||
| Baiya International (BIYA) | $15M | Industrials | Revere Sec. |
| Chinese HR platform that connects companies and blue-collar staffing agencies. | |||
| BloomZ (BLMZ) | $17M | Communication Services | Network 1 |
| Japanese audio production and voice actor management company. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/2/2023, the Renaissance IPO Index was up 23.5% year-to-date, while the S&P 500 was up 14.0%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Palantir Technologies (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index was down 22.4% year-to-date, while the ACWX was up 4.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
Two IPOs are currently scheduled for the week ahead, although some small issuers may join the calendar late.
Hamilton Group (HG) plans to raise $255 million at a $1.9 billion market cap. Mostly operating through subsidiaries in Bermuda and Europe, the company provides a range of insurance products globally, including casualty and specialty insurance, as well as reinsurance. Hamilton is set to be the year’s third and largest insurance IPO; reinsurer Fidelis (FIHL) has hovered around its offer price since its June IPO, while fast-growing property & casualty insurer Skyward (SKWD) has strongly outperformed since its early 2023 debut.
Holdover Shimmick (SHIM) is tentatively scheduled for the week ahead, aiming to raise $50 million at a $333 million market cap. The company specializes in public water infrastructure, including dams, reservoirs, water treatment, and desalination plans. Its project backlog is worth $1+ billion, though it is subject to cancellation and adjustments.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Hamilton Group (HG) Hamilton, Bermuda | $255M$1,923M | $16 – $1815,000,000 | BarclaysMorgan Stanley |
| Bermuda-based provider of reinsurance and specialty insurance. | |||
| Shimmick (SHIM) Irvine, CA | $50M$333M | $10 – $124,550,000 | Roth Cap. |
| California-based construction firm specializing in public water infrastructure. | |||
Street research is expected for five companies in the week ahead, and two lock-up periods will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/2/2023, the Renaissance IPO Index was up 23.5% year-to-date, while the S&P 500 was up 14.0%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Palantir Technologies (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index was down 22.4% year-to-date, while the ACWX was up 4.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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