Micro-cap diamond maker Adamas One (JEWL) completed the first offering of the December IPO market. The biggest news of the week came from Vingroup’s Vinfast Auto (VFS), which filed for an IPO we estimate could raise more than $1 billion. It is expected to be the largest IPO from a Vietnamese company since 2018, and the first US IPO from a Vietnam-based company in Renaissance Capital’s 31-year history. Two other micro-caps and a SPAC also submitted initial filings.
After attempting to complete its IPO over the past month, Adamas One (JEWL) priced at the low end to raise $11 million at a $90 million market cap. The company manufactures single crystal diamonds and diamond materials through a proprietary chemical vapor deposition (CVD) process. It intends to sell finished diamonds for jewelry, and rough unfinished diamond materials for industrial uses. The potential market for lab-grown diamonds is still relatively new, but the company has started to generate revenue in the current fiscal year. Although it had priced on Tuesday, trading did not begin until Friday. It finished the day up 5%.
| 1 IPO During the Week of December 5th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 12/09 |
| Adamas One (JEWL) | $11M | $90M | -5% | n/a | +5% |
| Early-stage producer of lab-grown diamonds for jewelry and industrial uses. | |||||
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Vinfast (VFS) is focused on delivering a full-scale mobility platform of electric vehicles which includes scooters, passenger cars, and buses. As of 9/30/22, it had delivered 88,000 vehicles, most of which were internal combustion engine (ICE) vehicles, in addition to 145,000 e-scooters. VinFast Auto has since phased out its ICE vehicle products in 2022 in order to focus on delivering its e-vehicle lineup.
The EV spinoff was also joined by narcotics storage company Scripps Safe (SCRP) and Singapore-based real estate brokerage platform Ohmyhome (OMH), both of which filed to raise $15 million. Additionally, SPAC Alphatime Acquisition (ATMCU) filed for a $60 million IPO. It plans to target businesses in Asia.
| 4 Filings During the Week of December 5th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Scripps Safe (SCRP) | $15M | Health Care | WestPark Capital |
| Provides vaults and safes for narcotics storage. | |||
| AlphaTime Acquisition (ATMCU) | $60M | SPAC | Chardan |
| Blank check company targeting businesses in Asia. | |||
| Ohmyhome (OMH) | $15M | Real Estate | Spartan Capital |
| Operates a real estate brokerage and property services platform in Singapore. | |||
| VinFast (VFS) | $1,000M | Consumer Discretionary | Citi |
| Electric vehicle manufacturing unit of Vietnam's Vingroup. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/8/2022, the Renaissance IPO Index was down 53.3% year-to-date, while the S&P 500 was down 15.5%. 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 32.2% year-to-date, while the ACWX was down 14.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and JD Health.
