Four IPOs priced this past week, joined by one SPAC.
After upping its terms at the start of the week, chipmaker Astera Labs (ALAB) priced above the raised range to raise $713 million at a $6.3 billion market cap. Astera offers its Intelligent Connectivity Platform, which comprises semiconductor-based connectivity products and its software suite. Its products are built specifically for data center and AI infrastructure, positioning it well to benefit from future buildouts. The company has delivered strong growth, though its revenue is concentrated in its top three customers. Astera popped 72% on day one and finished the week up 94%.
Social media platform Reddit (RDDT) priced at the high end to raise $748 million at a $6.4 billion market cap. The platform has over 100k+ active interest-based “subreddits,” serving 76 million daily users. Reddit has delivered solid growth and shown potential for significant economies of scale. The company is still unprofitable, though, and average revenue per user declined in the most recent quarter. Reddit finished up 35%.
Peruvian healthcare company Auna (AUNA) priced below the range to raise $360 million at a $903 million market cap. Originally founded as a healthcare coverage provider, Auna now also operates 15 hospitals and 16 other facilities across Mexico, Peru, and Colombia. The company has successfully expanded its footprint, and its underpenetrated target markets allow room for continued growth. It is highly leveraged post-IPO. Auna finished down 20%.
Hong Kong-based financial PR firm Intelligent Group (INTJ) priced at the low end to raise $8 million at a $53 million market cap. The firm provides services to clients during mergers and acquisitions, IPOs, and restructurings on a variety of complex business. Intelligent Group is small and saw revenue decline in the FY22. Intelligent Group finished down 47%.
SPAC Black Hawk Acquisition (BKHAU) raised $69 million in its upsized offering. The company plans to to focus on businesses with compelling long-term growth potential and highly defensible market positions.
| 5 IPOs During the Week of March 18th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 03/22 |
| Astera Labs (ALAB) | $713M | $6,340M | 26% | +72% | +94% |
| Designs advanced chip-based connectivity products used in data centers. | |||||
| Reddit (RDDT) | $748M | $6,370M | 5% | +48% | +35% |
| Social media platform with message boards for interest-based communities. | |||||
| Black Hawk Acquisition (BKHAU) | $69M | $89M | 0% | +2% | +2% |
| Blank check company targeting businesses with growth potential and defensible market positions. | |||||
| Auna (AUNA) | $360M | $903M | -14% | -20% | -20% |
| Provides healthcare plans and operates hospitals in Peru, Colombia, and Mexico. | |||||
| Intelligent Group (INTJ) | $8M | $53M | -11% | -18% | -47% |
| Provides financial public relations consulting in Hong Kong. | |||||
Two sizable issuers submitted initial filings. Utility infrastructure services carve-out Centuri Holdings (CTRI) filed to raise an estimated $500 million, and digital rebate platform Ibotta (IBTA) filed to raise an estimated $250 million.
| 4 Filings During the Week of March 18th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Centuri (CTRI) | $500M | Industrials | UBS |
| Carve-out of Southwest Gas providing infrastructure services to energy and utility firms. | |||
| Churchill Capital IX (CCIXU) | $250M | SPAC | Citi |
| Blank check company founded by dealmaker and former Citi executive Michael Klein. | |||
| Ibotta (IBTA) | $250M | Technology | Goldman |
| Provides a digital marketing platform that offers consumers cash rebates. | |||
| Nano Nuclear Energy (NNE) | $15M | Industrials | Benchmark |
| Developing nuclear microreactors and related fuel technologies. | |||
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/21/2024, the Renaissance IPO Index was up 11.1% year-to-date, while the S&P 500 was up 10.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Coinbase Global (COIN). The Renaissance International IPO Index was down 0.5% year-to-date, while the ACWX was up 4.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Wise and Porsche.
