Seven issuers began trading in the final week of June, six of which are eligible for inclusion in our IPO stats and four of which raised $100+ million. They were joined by one blank check company.
The 2Q saw the IPO market end with much more momentum than it began. For detailed discussion of activity over the past quarter and what it means for the second half of the year, read our newly-released 2Q US IPO Market Review.
The largest for-profit thrift store chain in North America, Savers Value Village (SVV) upsized and priced above the range to raise $401 million at a $3.1 billion market cap. The company operates a total of 317 stores under various banners, offering a range of goods with an average unit retail under $5. Savers Value Village has delivered strong post-COVID growth, though it is leveraged post-IPO. After popping 27% on its first day, Savers finished the week up 32%.
Natural gas compression firm Kodiak Gas Services (KGS) priced well below the range to raise $256 million at a $1.2 billion market cap. Kodiak’s compression assets are primarily deployed in the Permian Basin and Eagle Ford Shale, serving blue-chip upstream and midstream customers. While its business is highly capital-intensive, the company is profitable on EBITDA, and its fixed revenue contracts provide visibility and steady cash flows. Kodiak broke issue on the first day but finished up 2%.
Bermuda-based Fidelis Insurance (FIHL) downsized and priced below the range to raise $210 million at a $1.7 billion market cap. Fidelis provides specialty insurance and property reinsurance, with operations in Bermuda, Ireland, and the UK. While the company is led by experienced management and underwriting teams, it currently relies heavily on a related party for origination, underwriting, and claims management. Fidelis finished down 3%.
Mexico-listed Vesta Real Estate (VTMX) raised $388 million at a $2.5 billion market cap. Focused on industrial properties, Vesta is a fully-integrated, internally managed real estate company, with a portfolio of 202 buildings across fifteen Mexican states. The company expects to grow gross leasable area by more than 40% through 2025. It is leveraged post-IPO. Vesta finished up 4%.
Restaurant chain GEN Restaurant Group (GENK) upsized and priced at the high end to raise $43 million at a $391 million market cap. GEN’s restaurants offer Korean and Korean-American food at 34 locations across seven US states. Profitable and growing, the company believes its concept could have more than 250 locations in the US, though its restaurants are currently concentrated in California. GEN finished up 42%.
Solid tumor biotech Intensity Therapeutics (INTS) offered more shares and priced at the high end to raise $20 million at a $66 million market cap. Its lead candidate entered a Phase 1/2 dose escalation study in the US and Canada in 2017, and has completed enrollment for a Phase 2 study in Canada as a treatment prior to surgery in early-stage breast cancer. Intensity finished up 19%.
While not counted below, OTC-listed Alliance Entertainment Holding (OTCPK:AENT) downsized to raise $4 million at a $153 million market cap. The media distributor finished down 15%.
| 7 IPOs During the Week of June 26th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 06/30 |
| GEN Restaurant Group (GENK) | $43M | $391M | 9% | +28% | +42% |
| Korean BBQ restaurant chain with 34 locations in the US. | |||||
| Savers Value Village (SVV) | $401M | $3,117M | 13% | +27% | +32% |
| Largest for-profit thrift store operator in the US and Canada. | |||||
| Intensity Therapeutics (INTS) | $20M | $66M | -50% | +19% | +19% |
| Phase 2 biotech developing intratumoral injection therapies for cancer. | |||||
| Vesta Real Estate (VTMX) | $388M | $2,534M | 0% | +4% | +4% |
| Owns and operates industrial real estate properties in Mexico. | |||||
| Bukit Jalil Global Acq. 1 (BUJAU) | $50M | $68M | 0% | +2% | +2% |
| Blank check company led by Malaysian executives targeting emerging growth companies. | |||||
| Kodiak Gas Services (KGS) | $256M | $1,200M | -22% | -2% | +2% |
| Provides natural gas compression services in the US. | |||||
| Fidelis Insurance (FIHL) | $210M | $1,664M | -20% | -8% | -3% |
| Global provider of specialty insurance and property reinsurance. | |||||
| 4 Filings During the Week of June 26th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| BioLingus (SUBL) | $47M | Health Care | Univest Sec. |
| Switzerland-based Phase 1 biotech developing sublingual peptides for diabetes. | |||
| Garden Stage (WIN) | $15M | Financials | Revere Sec. |
| Hong Kong-based provider of underwriting and brokerage services. | |||
| RoyaLand (RLND) | $7M | Communication Services | Revere Sec. |
| Bermuda-based video game developer. | |||
| MIRA Pharmaceuticals (MIRA) | $16M | Health Care | Kingswood Cap. Mkts. |
| Preclinical biotech developing a molecular synthetic THC analog for anxiety and neuro indications. | |||
No IPOs are currently scheduled to list in the week ahead, as markets take a break to celebrate the Fourth of July, although some small issuers may join the calendar during the week.
A handful of deals are already scheduled for later in July, most notably aviation company Surf Air Mobility (SRFM), which is slated to complete the first direct listing of 2023. We expect to see activity pick up before the annual August break, following the past week’s successful batch of large IPOs (SVV, KGS, FIHL, and VTMX).
This past week, we released our reviews of the 2Q23 US and global IPO markets, where we cover activity over the past quarter, IPO performance, our outlook going forward, and more.
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 6/29/2023, the Renaissance IPO Index was up 30.3% year-to-date, while the S&P 500 was up 15.5%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 10.5% year-to-date, while the ACWX was up 9.0%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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