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 a pre-revenue organizer of esports events in Pakistan, priced at the low end to raise $7 million at a $102 million market cap. Gamer Pakistancompany 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. | |||||
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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. | |||
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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 (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) 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 (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
