Following the Independence Day lull, the July IPO market warmed up with two sizable biotechs, joined by two blank check companies. Surf Air Mobility (SRFM), which was expected to begin trading this past week, delayed its direct listing until later this month.
In the second-largest biotech IPO since the start of 2022, Apogee Therapeutics (APGE) upsized and priced at the high end to raise $300 million at an $815 million market cap. Founded by healthcare investors Fairmount Funds and Venrock as a spinout of Paragon Therapeutics, Apogee is developing differentiated monoclonal antibody therapies for various inflammatory and immunology indications. The company anticipates initiating a Phase 1 trial for its lead program in atopic dermatitis in the 2H23. Apogee finished up 25%.
In its second IPO attempt, Sagimet Biosciences (SGMT) priced a slightly upsized deal at the midpoint to raise $85 million at a $386 million market cap. Backed by NEA, Kleiner Perkins, and Baker Bros., Sagimet is developing selective fatty acid synthase inhibitors, initially for nonalcoholic steatohepatitis (NASH), a common liver disease for which there are currently no FDA-approved therapies. Its sole clinical candidate has completed a Phase 2a trial in NASH, and the company presented interim results for its Phase 2b trial in November 2022. Sagimet finished flat.
| 4 IPOs During the Week of July 10th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/14 |
| Apogee Therapeutics (APGE) | $300M | $815M | 6% | +25% | +25% |
| Phase 1-ready biotech developing antibody therapies for inflammatory diseases. | |||||
| Bowen Acquisition (BOWNU) | $60M | $81M | 0% | +1% | +1% |
| Blank check company targeting businesses in Asia. | |||||
| Nabors Energy Trans. II (NETDU) | $300M | $375M | 0% | +1% | +1% |
| Second blank check company formed by Nabors Industries targeting the energy transition space. | |||||
| Sagimet Biosciences (SGMT) | $85M | $386M | 0% | +0% | +0% |
| Phase 2 biotech developing a selective FASN inhibitor for NASH and cancers. | |||||
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| 4 Filings During the Week of July 10th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Northann (NCL) | $12M | Consumer Discretionary | Craft Capital |
| Makes and sells 3D printed vinyl flooring products. | |||
| Gamer Pakistan (GPAK) | $8M | Communication Services | WestPark Capital |
| Pre-revenue organizer of esports events in Pakistan. | |||
| RanMarine Technology (RMRN.RC) | $17M | Technology | Aegis Cap. |
| Dutch maker of drones designed to remove pollution and waste from water surfaces. | |||
| Turbo Energy (TURB) | $6M | Industrials | Boustead |
| Spanish provider of PV energy storage equipment being spun out of Umbrella Solar Investment. | |||
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This past week, we released our 2Q23 rankings for IPO law firms. Read it here, and check out our other quarterly content:
- 2Q23 US IPO Market Review
- 2Q23 IPO Rankings for the Big Four Accounting Firms
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/13/2023, the Renaissance IPO Index was up 43.6% year-to-date, while the S&P 500 was up 18.5%. 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 6.5% year-to-date, while the ACWX was up 12.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
