Six IPOs began trading this past week, led by four that raised $100+ million, the most in one week since November 2021. They were joined by two SPACs. Several small deals were unable to price (SODR, INTS, BFRG, NFTG, CWD, NRXS).
Upsizing and pricing above the range, Nextracker (NXT) raised $638 million at a $3.5 billion market cap in the year’s largest US IPO to date. The offering was 100% synthetic secondary. Nextracker’s integrated solar tracker and software solutions enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance. Profitable and growing, approximately 70 GW of its tracker systems had been shipped as of 9/30/22. Nextracker finished up 29%.
Chinese lidar developer Hesai Group (HSAI) upsized and priced at the high end to raise $190 million at a $2.6 billion market cap. Since shifting its focus to LiDAR in 2016, Hesai has become a leading provider of three-dimensional LiDAR products for ADAS, autonomous mobility, and last-mile delivery robots, shipping over 103,000 LiDAR units to date. The company is highly unprofitable and has faced increasing costs and supply chain constraints. Hesai finished up 17%.
Cardiorenal disease biotech Mineralys Therapeutics (MLYS) upsized and priced at the high end to raise $192 million at a $645 million market cap. Its sole candidate was licensed from Mitsubishi Tanabe and is initially being developed for uncontrolled hypertension. The company plans to initiate a randomized, double-blind, placebo-controlled Phase 2 trial for uncontrolled hypertension and resistant hypertension in the 1H23, followed by a Phase 3 trial in the 2H23. Mineralys finished up 15%.
Israel-based Enlight Renewable Energy (ENLT) priced below its last close on the TASE to raise $252 million at a $2.1 billion market cap. Operating across three continents, Enlight's utility-scale renewable energy projects include what it believes to be some of the largest onshore wind and solar projects across the US, Western and Central & Eastern Europe, and Israel. The company has delivered solid growth, though its business is highly capital intensive. Enlight finished down 1%.
Micro-cap Canadian psychotropics maker Lucy Scientific Discovery (LSDI) downsized to raise $8 million at a $67 million market cap. It finished down 29%. While not counted below, Lichen China (LICN) began trading on Monday, 2/6, after raising $16 million at a $106 million market cap the prior Friday. It finished up 2%.
| 7 IPOs During the Week of February 6th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/10 |
| Nextracker (NXT) | $638M | $3,486M | 12% | +27% | +29% |
| Provides utility-scale advanced solar tracker systems. | |||||
| Hesai Group (HSAI) | $190M | $2,550M | 6% | +11% | +17% |
| Chinese provider of LiDAR products for autonomous vehicles and other uses. | |||||
| Mineralys Therapeutics (MLYS) | $192M | $645M | 7% | +15% | +15% |
| Phase 2 biotech developing an in-licensed therapy for cardiorenal disorders. | |||||
| Bellevue Life Sci Acq. (BLACU) | $60M | $79M | 0% | +2% | +2% |
| Blank check company backed by Bellevue Capital Management targeting the biotech sector. | |||||
| Pono Capital Three (PTHRU) | $100M | $131M | 0% | +2% | +2% |
| Blank check company targeting the disruptive technology sector in Japan. | |||||
| Enlight Renewable Energy (ENLT) | $252M | $2,092M | 0% | -1% | -1% |
| Operates wind and solar energy projects in Israel, Europe, and the US. | |||||
| Lucy Scientific Discovery (LSDI) | $8M | $67M | 0% | -25% | -29% |
| Early-stage psychotropics contract manufacturing company. | |||||
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Five small IPOs submitted initial filings this past week. They were joined by two SPACs (KVISU.RC and SBXC.U), marking the first blank check IPO filings of 2023, compared to 20 by this time last year.
| 7 Filings During the Week of February 6th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Haoxin Holdings (HXHX) | $15M | Industrials | Univest Sec. |
| Provides temperature-controlled truckload and urban delivery services in China. | |||
| SilverBox III (SBXC.U) | $100M | SPAC | Credit Suisse |
| Blank check company formed by SilverBox Capital. | |||
| Webus International (WETO) | $20M | Consumer Discretionary | Network 1 |
| Provides charter bus services and guided tours in China. | |||
| Droneify (DRFY) | $6M | Industrials | Boustead |
| Canadian provider of drone services. | |||
| EPWK Holdings (EPWK) | $30M | Technology | Revere Sec. |
| Operates an online freelance and crowdsourcing marketplace in China. | |||
| Keen Vision Acquisition (KVISU.RC) | $130M | SPAC | EF Hutton |
| Blank check company formed by Keen Vision Capital focused on ESG. | |||
| Multi Ways Holdings (MWG) | $16M | Industrials | Spartan Capital |
| Singapore-based supplier of heavy construction equipment. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/9/2023, the Renaissance IPO Index was up 17.1% year-to-date, while the S&P 500 was up 6.5%. 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 up 4.7% year-to-date, while the ACWX was up 8.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
