Five companies priced IPOs this week, led by Birkenstock’s (BIRK) $1.5 billion offering. Three small issuers submitted initial filings.
Birkenstock priced its IPO just below the midpoint to raise $1.5 billion at an $8.6 billion market cap, making it one of the largest consumer discretionary IPOs of the past two decades. Cornerstone investors took down about 40% of the deal. Acquired in 2021 by L Catterton, which sold about two-thirds of the IPO, the 250-year-old sandal maker pitched a combination of profitability and growth, along with widespread brand recognition. However, faced with technical headwinds and a stretched valuation, it fell 13% in its first day. Of the 95 IPOs that have raised at least $1 billion in the past 10 years, only five performed worse than Birkenstock on day one. Birkenstock finished the week down 21%.
Singapore-based facilities services provider Primech Holdings (PMEC) priced at the low end to raise $12 million at a $142 million market cap. The company operates in Singapore and Malaysia, and primarily provides facilities services, stewarding services, and cleaning services to offices. Primech dropped 63% in its first day, the worst US IPO debut in over 20 years based on our stats, and finished the week down 68%.
Agape ATP (ATPC), a Malaysian direct sales company offering dietary supplements and skincare products, raised $7 million at a $308 million market cap. It primarily targets distributors in Malaysia, and also runs an advisory services center. It finished the week down 60%.
Chinese virtual content and digital marketing services provider Global Mofy Metaverse (GMM) priced at the midpoint to raise $6 million at a $130 million market cap. The company has a proprietary technology platform which consists of 3D rebuilt technology and AI interactive technology. It finished the week up 0.2%.
Real estate brokerage franchise La Rosa Holdings (LRHC) raised $5 million at a $58 million market cap. The Florida-based company has five corporate real estate brokerage offices and 24 franchised offices. It finished the week down 44%.
Holdover Gamer Pakistan (GPAK), started trading on the Nasdaq after a short delay, having priced its $7 million IPO in the prior week. The pre-revenue organizer of esports events in Pakistan, priced at the low end to raise $7 million at a $102 million market cap. Gamer Pakistan company aims to create become a leader in organizing collegiate and professional esports events in Pakistan events. It finished the week down 67%.
| 5 IPOs During the Week of October 9th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 10/13 |
|
Global Mofy Metaverse (GMM) |
$6M | $130M | 0% | +2% | +0% |
| Chinese provider of virtual content and digital marketing services. | |||||
|
Birkenstock (BIRK) |
$1,484M | $8,640M | -1% | -13% | -21% |
| European shoemaker known for its luxury sandals. | |||||
|
La Rosa Realty (LRHC) |
$5M | $58M | -50% | -30% | -44% |
| Florida-based residential real estate brokerage franchise. | |||||
|
Agape ATP (ATPC) |
$7M | $308M | -33% | -55% | -60% |
| Malaysian direct sales company offering supplements and skincare products. | |||||
|
Primech Holdings (PMEC) |
$12M | $142M | -11% | -63% | -68% |
| Provides cleaning and maintenance services to facilities in Singapore and Malaysia. | |||||
Three small issuers submitted initial filings this past week. China-based tea producer Oriental Rise (ORIS) filed to raise $16 million at a $92 million market cap. UK-based luxury activewear brand Perfect Moment (PMNT) filed to raise $15 million. Chinese oncology device maker Pheton (PTHL) filed to raise $11 million at a $65 million market cap.
| 3 Filings During the Week of October 9th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Oriental Rise (ORIS) |
$16M | Consumer Staples | Tiger Brokers |
| Chinese producer of tea. | |||
|
Pheton (PTHL) |
$11M | Health Care | Pacific Century Securities |
| Chinese provider of treatment planning systems for cancer radiotherapy. | |||
|
Perfect Moment (PMNT) |
$15M | Consumer Discretionary | ThinkEquity |
| Luxury lifestyle brand focused on ski apparel and other activewear. | |||
There are currently no deals scheduled for the upcoming week as the IPO market pauses to digest a lackluster performance from Birkenstock (BIRK). However, some small issuers may join the calendar late.
The prominent sandal marker’s shares tumbled 13% during its inaugural trading day, before finishing the week down 21%. Meanwhile, the calendar remains empty with no major launches. Notably, Mach Natural Resources LP (MNR), an oil and gas producer focused in the Anadarko Basin, opted to sit on the sidelines despite becoming eligible to begin its roadshow earlier this week. Several other large filers may set terms in the coming week, including inflammatory disease biotech Abivax (ABVX), which aims to raise $100 million.
Street research is expected for three companies in the week ahead, and four lock-up periods will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/12/2023, the Renaissance IPO Index was up 26.7% year-to-date, while the S&P 500 was up 14.8%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Palantir (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index was down 18.3% year-to-date, while the ACWX was up 6.4%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
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