The IPO market showed signs of life after a fairly quiet April, with three IPOs and two SPACs this past week. While there were only two new IPO filings, a few large deals in the pipeline updated their prospectuses, including Corebridge Financial (CRBG) and Savers Value Village (SVV).
In the year’s second largest IPO yet, Bausch + Lomb (BLCO) priced well below the range to raise $630 million at $6.5 billion market cap in its return to public markets, finishing up 11%. The offering was 100% secondary, and the company dual listed on the NYSE and the TSX. Highly profitable with strong cash flow, Bausch + Lomb offers a broad portfolio of well-known brands with leading market positions, though margins have declined over the last several years.
Neuromuscular disease biotech PepGen (PEPG) added more shares but priced below the range, raising $108 million at a $277 million market cap. PepGen’s lead candidate is being developed for muscular dystrophy and is currently in a Phase 1 trial, with topline data expected by the end of this year. PepGen finished up 7%.
Canadian gold exploration company Austin Gold (AUST) raised $13 million at a $52 million market cap. The company has interests in four properties, one of which they consider material. While not counted below, agriculture nano-cap Edible Garden (EDBL) raised $15 million, offering units.
Two SPACs came to market: Cartesian Growth II (RENEU), which raised $200 million to target high-growth businesses, and A SPAC II Acquisition (ASCBU), which raised $185 million to target new economy sectors in North America, Europe, and Asia.
| 5 IPOs During the Week of May 2nd, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 05/06 |
| Bausch + Lomb (BLCO) | $630M | $6,533M | -20% | +11% | +11% |
| Leading supplier of contact lenses and eyecare products. | |||||
| PepGen (PEPG) | $108M | $277M | -14% | +7% | +7% |
| Phase 1 biotech developing oligonucleotide therapies for neuromuscular diseases. | |||||
| Cartesian Growth II (RENEU) | $200M | $250M | 0% | +0% | +0% |
| Second blank check company formed by Cartesian Capital Group targeting high-growth businesses. | |||||
| A SPAC II Acquisition (ASCBU) | $185M | $234M | 0% | +0% | +0% |
| Blank check company targeting new economy sectors in North America, Europe, and Asia. | |||||
| Austin Gold (AUST) | $13M | $52M | -20% | +9% | -26% |
| Canadian gold exploration company with four properties in Nevada. | |||||
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.
There were two new IPO filings this past week. Envirotech Vehicles (EVTV), which sells zero-emission EVs for commercial fleets, filed to raise $50 million, and Chinese consultation and support services provider Lichen China (LICN) filed to raise $25 million.
The sole SPAC to file, Latin America-focused Arago Acquisition (ARAGU), filed to raise $75 million.
| 3 Filings During the Week of May 2nd, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Arago Acquisition (ARAGU) | $75M | SPAC | EF Hutton |
| Latin America-focused blank check company backed by Arago Gestion and Alta Growth Capital. | |||
| Envirotech Vehicles (EVTV) | $50M | Consumer Discretionary | Roth Cap. |
| Sells zero-emission electric vehicles for commercial fleets. | |||
| Lichen China (LICN) | $25M | Industrials | Univest Sec. |
| Provides financial and tax consultation and education support services in China. | |||
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 5/5/2022, the Renaissance IPO Index was down 41.6% year-to-date, while the S&P 500 was down 12.6%. 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 31.6% year-to-date, while the ACWX was down 12.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
