Four IPOs and one SPAC debuted this past week. Two IPOs and one SPAC submitted initial filings.
Chinese premium EV brand ZEEKR (ZK) priced its upsized IPO at the top of the range to raise $441 million at a $5.2 billion market cap. Originally part of Chinese auto giant Geely Auto, ZEEKR’s product portfolio includes two cross-over hatchback models, a luxury MPV, and a compact SUV. As of December 31, 2023, it has cumulatively delivered nearly 197,000 vehicles. The company has expanded rapidly since being spun-out, and posted 91% revenue growth in the 9mo23. Despite this, it remains unprofitable, and operates in an increasingly competitive space. Insiders bought a significant portion of the IPO. ZEEKR finished the week up 35%.
Auto transport rollup Proficient Auto Logistics (PAL) priced at the midpoint to raise $215 million at a $387 million market cap. Formed in connection with the IPO through the combination of five operating companies, Proficient Auto Logistics will operate what it states is one of the largest auto transportation fleets in North America. The company has presented double digit pro forma revenue growth in the past two years, aided by industry tailwinds, but derived 60% of its 2023 revenue from just five customers. Proficient Auto Logistics finished the week flat.
Design software and services provider Silvaco (SVCO) priced at the top of the range to raise $114 million at a $586 million market cap. Silvaco provides technology computer aided design software, electronic design automation software, and semiconductor intellectual property for semiconductor and photonics companies. Silvaco has a leading position in the technology computer-aided design market, but has been unprofitable in numerous recent quarters with minimal cash flows. It finished the week flat.
Pre-revenue nuclear microreactor developer Nano Nuclear Energy (NNE) priced its downsized IPO at the bottom of the range to raise $10 million at a $125 million market cap. The company is focused on micro nuclear reactors, fuel fabrication, fuel transportation, and nuclear consultation services. It finished the week up 13%.
GP-Act III Acquisition (GPATU), a SPAC backed by GP Investments, Boxcar Partners, and a former Hain Celestial executive, raised $250 million.
| 5 IPOs During the Week of May 6th, 2024 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/10 |
| ZEEKR (ZK) | $441M | $5,199M | 8% | +35% | +35% |
| Premium electric vehicle brand spun out of Chinese automaker Geely. | |||||
| Nano Nuclear Energy (NNE) | $10M | $125M | -20% | +30% | +13% |
| Developing nuclear microreactors and related fuel technologies. | |||||
| GP-Act III Acquisition (GPATU) | $250M | $313M | 0% | +1% | +1% |
| Blank check company backed by GP Investments, Boxcar Partners, and a former Hain Celestial exec. | |||||
| Proficient Auto Logistics (PAL) | $215M | $387M | 0% | -2% | +0% |
| Roll-up of auto transportation and logistics services providers. | |||||
| Silvaco (SVCO) | $114M | $586M | 6% | +4% | +0% |
| Provides design automation software and semiconductor IP solutions. | |||||
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Two IPOs submitted initial filings this past week. Singaporean food caterer Premium Catering (PRMC.RC) filed to raise $20 million, and China-based machine vision products provider Lianhe Sowell (LHSW) filed to raise $12 million.
Blank check YNH Acquisition I (YHNAU), led by executives from boutique SPAC firm Norwich Capital, filed to raise $60 million.
| 3 Filings During the Week of May 6th, 2024 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Lianhe Sowell (LHSW) | $12M | Technology | Benchmark |
| Provides machine vision products and solutions in China. | |||
| YHN Acquisition I (YHNAU) | $60M | SPAC | Lucid Capital Markets |
| Blank check company led by executives from boutique SPAC firm Norwich Capital. | |||
| Premium Catering (PRMC.RC) | $20M | Consumer Discretionary | Bancroft Capital |
| Provides food catering services to foreign workers and others in Singapore. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/9/2024, the Renaissance IPO Index was up 2.5% year-to-date, while the S&P 500 was up 9.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index was up 4.0% year-to-date, while the ACWX was up 5.5%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Porsche.
