The US IPO market was fairly quiet this past week, with just two blank check IPOs before the Christmas holiday. They were joined by nano-cap biotech Lipella Pharmaceuticals (LIPO), which was too small to be included in our IPO stats. Another nano-cap, BullFrog AI Holdings (BFRG) again delayed its $8 million IPO.
SPACs AlphaVest Acquisition (ATMVU) and Horizon Space Acquisition I (HSPOU) each raised $60 million this past week. AlphaVest plans to target businesses in Asia, focusing on those with compelling economics and significant assets, among other characteristics. Led by a Chinese PE investor, Horizon plans to target emerging growth companies with long-term revenue visibility and defensible market positions.
| 2 IPOs During the Week of December 19th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 12/23 |
| Horizon Space Acq. I (HSPOU) | $60M | $81M | 0% | +1% | +1% |
| Blank check company led by a Chinese executive targeting emerging growth companies. | |||||
| AlphaVest Acquisition (ATMVU) | $60M | $80M | 0% | +0% | +0% |
| Blank check company targeting businesses in Asia. | |||||
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Three Chinese companies joined the US IPO pipeline. Online education company QuantaSing Group (QSG) and AI tech developer Xiao-I (XI) both filed to raise $60 million, and battery-swapping station developer U Power (UCAR) filed to raise $25 million.
| 3 Filings During the Week of December 19th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| U Power (UCAR) | $25M | Industrials | AMTD Global |
| Launching automated battery-swapping stations for electric vehicles in China. | |||
| QuantaSing Group (QSG) | $60M | Technology | Citi |
| Provides online financial literacy and personal interest courses for adults in China. | |||
| Xiao-I (XI) | $60M | Technology | Prime Num. Cap. |
| Chinese cognitive intelligence company focused on conversational AI. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/22/2022, the Renaissance IPO Index was down 57.0% year-to-date, while the S&P 500 was down 18.5%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 33.7% year-to-date, while the ACWX was down 15.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
