US IPO Weekly Winners & Losers

Biotech IPOs just capped off their biggest month in 5+ years.

Four drug developers raised a combined $1.5 billion in April, the most biotech proceeds since March 2021.

Biotech deal flow was weak in recent years, but the space is now on a roll. This week’s three biotechs all upsized, priced high, and surged on day one. All three had candidates in Phase 2 or later, and ranged from blood clotting (COAG), respiratory disease (AVLN), and depression (SPTX).

Beyond biotechs, April was a solid month for new issuance – and the biggest month for new filings in over four years. The growing pipeline should translate to a more robust pickup through the rest of Q2. For now, new IPO filings are taking a short breather as companies finalize their Q1 numbers.

The May IPO market is slated to kick off with radio signal analyzer HawkEye 360 (NYSE: HAWK) and beverage brand Suja Life (Nasdaq: SUJA). HawkEye is the latest issuer tapping into demand for defense tech, while Suja will test demand for fast-growing consumer brands.

Looking ahead, investors are still anxiously awaiting SpaceX's public filing, which could land in a few weeks assuming a June launch. Another mega-IPO in the wings, OpenAI, reportedly missed internal growth targets. The company disputed the report, but there’s now more speculation that a 2027 IPO is more likely.

Non-traditional IPOs had a big week. Bill Ackman’s closed-end fund, Pershing Square USA (NYSE: PSUS), raised $5 billion but began trading at a clear discount to NAV. His management company Pershing Square (NYSE: PS) also listed directly with a $10+ billion valuation. Meanwhile, new SPAC activity surged as 11 deals raised $2.2 billion.

The IPO Index ended the week flat, compared to a +0.9% return for the S&P 500. Marketing software provider Klaviyo was the winner, up +14.1%. Hospital billing platform Waystar landed at the bottom, off -17.6%.