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Renaissance Capital's April IPO Market Update

May 3, 2023

Eleven very small IPOs raised a combined $111 million in April, well below the 10-year average (16 IPOs, $4.0B). The month’s largest deal raised just $19 million as issuance from larger names continued to stall in the wake of March’s banking crisis. Nearly all of the month’s issuers were based in Asia, except for fitness equipment brand Interactive Strength (TRNR) and US-based E&P Trio Petroleum (TPET). While “pop-and-drop” trading has been largely kept at bay so far this year, two issuers soared 100%+ on the first day before collapsing in the aftermarket, driving average first-day return to 76%; average return from offer was -2%. The Renaissance IPO Index trended down during the month, finishing off -5% compared to the S&P 500’s 2% gain. Two large IPOs joined the pipeline, inflammatory disease biotech ACELYRIN (SLRN) and insurer Fidelis Insurance (FIHL). Several other sizable names on file provided updates, led by J&J spinoff Kenvue (KVUE), which launched its $3.3 billion deal to price in the first week of May. With SPAC liquidations and bankruptcies rising, one blank check company went public in April, and its $450 million offering was the largest in over a year. The IPO calendar looks more promising heading into May, and while we don’t expect a sharp rebound in issuance for the summer, movement in the pipeline indicates that positive receptions could encourage other larger names to test the waters.

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