One small issuer listed in the short Presidents’ Day week, along with one SPAC, while a couple deals didn’t get done (NYX and AMDI). The big news came from the pipeline, which saw its first large additions in over a month.
Social media platform Reddit (RDDT) filed for its highly-anticipated IPO this past week, planning to raise an estimated $750 million. It was joined by chipmaker Astera Labs (ATRL.RC), which is on file for an estimated $500 million IPO. In addition to being the first $100+ million new filers this month, they’re also the first large tech issuers to file this year.
Uplisting from the OTC, Wetouch Technology (WETH) priced a downsized offering at the low end to raise $11 million at a $64 million market cap. The Chinese company makes and sells medium- to large-sized projected capacitive touchscreens. The company is profitable and geographically diversified, though its customer base is heavily concentrated. Wetouch finished down 5%.
UK-based SPAC DT Cloud Acquisition (DYCQU) raised $60 million. Led by executives from energy-focused asset manager KX Power, the blank check company plans to target businesses positioned to bring in high returns and long-term sustainable growth.
| 2 IPOs During the Week of February 19th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/23 |
| DT Cloud Acquisition (DYCQU) | $60M | $78M | 0% | +1% | +1% |
| Blank check company led by executives from energy-focused asset manager KX Power. | |||||
| Wetouch Technology (WETH) | $11M | $59M | -55% | -39% | -5% |
| Makes medium to large sized projected capacitive touchscreens. | |||||
| 5 Filings During the Week of February 19th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Rubber Leaf (RLEA) | $12M | Industrials | Prime Num. Cap. |
| Chinese supplier of automotive rubber and plastic sealing strips. | |||
| Mobile-health Network (MNDR) | $10M | Technology | Network 1 |
| Provides a platform for telehealth and other healthcare services in the APAC region. | |||
| Reddit (RDDT) | $750M | Technology | Morgan Stanley |
| Social media platform with message boards for interest-based communities. | |||
| Astera Labs (ATRL.RC) | $500M | Technology | Morgan Stanley |
| Designs advanced chip-based connectivity products used in data centers. | |||
| Orangekloud Technology (ORKT) | $14M | Technology | Maxim |
| Singapore-based provider of software development services for SMEs | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/22/2024, the Renaissance IPO Index was down 0.6% year-to-date, while the S&P 500 was up 6.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Coinbase Global (COIN) and Kenvue (KVUE). The Renaissance International IPO Index was down 4.6% year-to-date, while the ACWX was up 1.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
