One small IPO and one SPAC began trading this past week, though the biggest news came from the pipeline.
Two sizable deals launched in the short holiday week, AIG carve-out Corebridge Financial (CRBG) and biotech Third Harmonic Bio (THRD). Corebridge’s $1.8 billion offering would be the largest IPO of the year, ahead of PE firm TPG (TPG), which raised $1 billion in January.
Yoshiharu Global (YOSH) priced at the low end to raise $12 million at a $53 million market cap. Unprofitable and fast-growing, the company operates eight ramen-focused Japanese restaurants in Southern California, with plans to open eight more by the end of the year. Yoshiharu finished up 4%.
EF Hutton Acquisition I (EFHTU) completed the first SPAC IPO in nearly a month, raising $100 million to target opportunities in the consumer and retail sectors. There was also some activity on the de-SPAC side: Cohn Robbins Holdings (CRHC) shareholders approved its $9.3 billion merger with lottery operator Allwyn Entertainment.
While not included below, China-based Lichen China (LICN) is expected to price Friday evening and begin trading on Monday. The company plans to raise $25 million at a $115 million market cap. Providing a variety of services under the Lichen brand, the company works with institutions across 12 provinces and 23 cities in China.
| 2 IPOs During the Week of September 5th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/09 |
| Yoshiharu (YOSH) | $12M | $53M | -11% | +4% | +4% |
| Operates eight ramen-focused Japanese restaurants in Southern California. | |||||
| EF Hutton Acquisition I (EFHTU) | $100M | $128M | 0% | -1% | -1% |
| Blank check company led by EF Hutton executives targeting consumer and retail. | |||||
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Four IPOs submitted initial filings. The largest, Pennsylvania bank LINKBANCORP (LNKB) filed to raise $40 million in a Nasdaq uplisting; it’s scheduled to price in the week ahead.
| 4 Filings During the Week of September 5th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Shengfeng Development (SHNG.RC) | $36M | Industrials | Univest Sec. |
| Chinese contract logistic services provider. | |||
| Vitro Biopharma (VTRO) | $17M | Health Care | ThinkEquity |
| Phase 1-ready biotech developing stem cell therapies for various indications. | |||
| LINKBANCORP (LNKB) | $40M | Financials | Stephens |
| Pennsylvania community bank with 11 branches. | |||
| Prime Skyline (PSE) | $15M | Industrials | ViewTrade |
| Provides building envelope solutions and services in Asia. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/7/2022, the Renaissance IPO Index was down 45.4% year-to-date, while the S&P 500 was down 15.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 37.1% year-to-date, while the ACWX was down 20.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and EQT.
