Following April’s stream of micro-cap activity, the month of May started off with two large IPOs, Kenvue (KVUE) and ACELYRIN (SLRN). The deals raised a combined $4.3 billion, or nearly two-thirds of IPO proceeds year-to-date, and both delivered solid trading in their debuts.
The latest spin-off to take on the IPO market, J&J’s consumer health unit Kenvue upsized and priced slightly above the midpoint to raise $3.8 billion at a $42.0 billion market cap. Mature and highly profitable, the company offers a portfolio of well-known brands like Tylenol and Listerine, and serves over a billion people across more than 165 countries. Kenvue plans to pay a quarterly dividend with a 3.6% annualized yield at the offer price. The IPO proceeds, as well as $9 billion of new debt issuance, will be paid to J&J as part of the separation. Kenvue finished up 20%.
Launching on Monday, immunology biotech ACELYRIN further upsized and priced at the high end to raise $540 million at a $1.8 billion market cap, the largest IPO from a biotech since February 2021. Its lead candidate was licensed from Affibody in late 2021 and is currently in Phase 2b/3 trials for hidradenitis suppurativa (HS), psoriatic arthritis (PsA), and uveitis. The company expects topline data for its HS trial in the 2H23, and PsA and uveitis in mid-2024. ACELYRIN finished up 31%.
Two blank check IPOs also priced this past week: Asia-focused Golden Star Acquisition (GODNU) and deep tech-focused Alchemy Investments Acquisition 1 (ALCYU).
| 4 IPOs During the Week of May 1st, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/05 |
| ACELYRIN (SLRN) | $540M | $1,770M | 6% | +31% | +31% |
| Late-stage biotech developing in-licensed therapies for inflammatory diseases. | |||||
| Kenvue (KVUE) | $3,802M | $42,045M | 2% | +22% | +20% |
| Consumer health products unit spun out of J&J. | |||||
| Golden Star Acquisition (GODNU) | $60M | $78M | 0% | +2% | +2% |
| Blank check company targeting businesses with strategic significance to Asian markets. | |||||
| Alchemy Investments Acq. (ALCYU) | $100M | $141M | 0% | +1% | +1% |
| Blank check company targeting deep technology with a focus on data analytics. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
| 3 Filings During the Week of May 1st, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Prospect Energy Holdings (AMGSU) | $300M | SPAC | EF Hutton |
| Blank check company targeting the clean energy industry in APAC and Canada. | |||
| WeBuy Global (WBUY) | $16M | Technology | Univest Sec. |
| Provides an e-commerce platform for grocery and travel in Singapore and Indonesia. | |||
| ZEROSPO (ZSPO.RC) | $17M | Consumer Discretionary | Boustead |
| Owns, operates, and franchises medical and relaxation salons in Japan. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/4/2023, the Renaissance IPO Index was up 11.2% year-to-date, while the S&P 500 was up 6.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 6.3% year-to-date, while the ACWX was up 8.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and JD Health.
