To sum up the week: eToro popped, Chime filed, and the IPO market beat the S&P 500 for the fifth week in a row.
The IPO Index rose +7.7% in its sixth straight up-week, outpacing the S&P 500 which returned +5.3%. Both are now positive for the year.
All things considered, this is the best-case scenario coming out of the tariff sell-off. Lingering tariff uncertainty has delayed a number of deals to the fall, but this latest rally will drive more companies to try to squeeze in summer listings. Here’s what we’re looking for in order to see a real pickup:
Volatility needs to stay in check. Investors and issuers need reassurance that this stability will last.
More sizable IPOs need to perform well. New issuers need to prove they can hold up after the listing.
More sizable IPOs need to file. An active pipeline will support an active calendar.
On these points, we’re starting to see green shoots.
For the first time this quarter, the VIX Volatility Index is sub-20.
Trading platform eToro (Nasdaq: ETOR) saw strong demand this week, and priced an upsized offering above the range. Its recent growth, profitability, and “tariff-resistant” business model led to a +29% pop on day one, dipping slightly from there.
Two more sizable listings are scheduled for the coming week. Digital health startup Hinge Health (NYSE: HNGE) and adtech MNTN (NYSE: MNTN) are set to raise nearly $600 million combined.
In what could be the quarter’s headline IPO, online banking service Chime (Nasdaq: CHYM) filed for an offering estimated to raise $1+ billion as early as the first or second week of June.
In the IPO Index, earnings were behind both the winner and loser. Solar tracking company Nextracker jumped +27.4% on a strong report. Aerospace firm Loar Holdings slid -10.7% amid a beat-and-raise quarter that appeared to disappoint (revenue was revised up just 0.4%), and the announcement of a secondary. Side note: While not in the Index, CoreWeave closed the week +100% above offer after reporting Q1 results, a good sign for the backlog of AI plays.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
May 16th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Nextpower (Nextracker) | NXT | 27.4% |
| Astera Labs | ALAB | 27.2% |
| Arm Holdings | ARM | 17.4% |
| Amer Sports | AS | 15.4% |
| Viking Holdings | VIK | 11.5% |
| Bottom 5 | ||
| Loar Holdings | LOAR | -10.7% |
| Kaspi.kz | KSPI | -7.4% |
| Mobileye Global | MBLY | -2.1% |
| Kenvue | KVUE | -1.1% |
| SailPoint | SAIL | 0.1% |
| Sectors | ||
| Consumer Discretionary | 8.4% | |
| Technology | 7.5% | |
| Industrials | 7.0% | |
| Health Care | 5.5% | |
| Energy | 4.7% | |
| Real Estate | 4.4% | |
| Consumer Staples | 1.4% | |
| Financials | -1.1% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned 7.7% last week vs. 5.3% for the S&P 500.
