Four IPOs raised $266 million this week, headlined by norovirus vaccine developer HilleVax (HLVX). The other three deals were micro-caps, an area of the IPO market that continues to see rapid price swings thanks to interest from momentum traders. Three SPACs also raised a combined $245 million, targeting Asian fintech, sustainable energy, and technology.
The week's biggest news came from Bausch + Lomb (BLCO), which set terms to raise about $800 million in the coming week at a valuation north of $8 billion.
HilleVax's upsized offering raised $200 million, making it the largest biotech IPO so far this year, out of nine total. The stock finished up 12%, bucking the recent sell-off in the biotech space. Backed by Frazier Healthcare Partners, HilleVax is in Phase 2 trials for a novel norovirus vaccine, which it licenses from former parent Takeda Pharma. While the company has just one clinical-stage candidate, it is going after a massive market, with the potential to be approved in routine infant vaccinations.
The week's three micro-cap IPOs included Chinese display supplier Ostin Technology Group (OST), medical implant developer Tenon Medical (TNON), and retinal degeneration biotech Belite Bio (BLTE). Ostin Technology soared an eye-popping 892% on its debut, the biggest IPO pop in about a year, before wiping out all of its gains later in the week.
The IPO Index fell to a 52-week low on Friday, a clear signal of the extremely challenging environment for US IPOs, especially growth names.
| 7 IPOs During the Week of April 25th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 04/29 |
| Tenon Medical (TNON) | $16M | $56M | 0% | +350% | +332% |
| Launching a surgical implant system for sacroiliac joint fusion procedures. | |||||
| Belite Bio (BLTE) | $36M | $145M | 0% | +77% | +77% |
| Phase 2/3 biotech developing an oral therapy for retinal degeneration diseases. | |||||
| HilleVax (HLVX) | $200M | $650M | 0% | +12% | +12% |
| Phase 2 biotech developing a novel norovirus vaccine in-licensed from Takeda. | |||||
| Chenghe Acquisition (CHEAU) | $100M | $129M | 0% | +1% | +1% |
| Blank check company targeting fintech in Asia. | |||||
| ClimateRock (CLRCU) | $75M | $95M | 0% | +1% | +1% |
| Blank check company targeting the sustainable energy industry in OECD countries. | |||||
| Aimfinity Investment I (AIMAU) | $70M | $92M | 0% | +0% | +0% |
| Blank check company targeting the technology sector. | |||||
| Ostin Technology Group (OST) | $14M | $54M | 0% | +892% | -8% |
| Chinese supplier of display modules and polarizers. | |||||
| 5 Filings During the Week of April 25th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Bellevue Life Sci Acq. (BLACU) | $60M | SPAC | Chardan |
| Blank check company backed by Bellevue Capital Management targeting the biotech sector. | |||
| Hudson Acquisition I (HUDAU) | $60M | SPAC | Chardan |
| Blank check company targeting technology in the US. | |||
| Magic Empire Global (MEGL) | $23M | Financials | Network 1 |
| Hong Kong-based provider of financial advisory and underwriting services. | |||
| HbO2 Therapeutics (HOTI) | $30M | Health Care | WestPark Capital |
| Relaunching hemoglobin-based oxygen carriers for human and veterinary use. | |||
| bioAffinity Technologies (BIAF) | $15M | Health Care | WallachBeth |
| Developing a noninvasive test for early detection of lung cancer. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/28/2022, the Renaissance IPO Index was down 36.0% year-to-date, while the S&P 500 was down 9.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and CrowdStrike Holdings (CRWD). The Renaissance International IPO Index was down 30.9% year-to-date, while the ACWX was down 12.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
