IPO Market Caps Off a Strong Q2 with SpaceX’s Historic Deal.
That’s the title of our newly-released quarterly IPO report.
The key takeaway: Q2 was a super-sized quarter for the US IPO market, even without the largest IPO of all time. Of course, returns matter more than deal stats, and the Renaissance IPO Index rallied more than +30% during the quarter. After treading water for several quarters, IPOs embodied the Wall Street saying: the longer the base, the bigger the breakout.
That’s a strong a set-up for the second half, but be prepared for volatility along the way.
The IPO Index pared some gains, off -4.3% this week compared to -2.0% for the S&P 500. AI stocks pulled back, with Arm (-23.9%) and Cerebras (-22.6%) near the bottom. Cerebras notably went below its IPO price for the first time, due to weak margin guidance and a lock-up release. Inflammation biotech Apogee Therapeutics was the top performer, up +46.7% on its buyout by AbbVie.
Three IPOs priced this past week. Engine and gas turbine equipment maker Doncasters Group (NYSE: DPC) priced above the range to raise $919 million and soared +44.1%. The 238-year-old company fits neatly within two powerful capital-raising themes: aerospace and data center buildouts. Silver miner Sinda (NYSE: SIND) got a shrug and traded flat, while Chinese used-car platform DSC Holdings (Nasdaq: DSC) cratered -57.4%.
The IPO calendar has four companies lined up ahead of the July 4 holiday. Bending Spoons (Nasdaq: BSP) is the biggest, aiming to raise $1.6 billion. The Italy-based company acquires out-of-favor digital businesses and optimizes them with AI, including AOL, Eventbrite, and Vimeo. It’s joined by Uber-backed scooter company Lime (Nasdaq: LIME), broadband engineering services provider ITG (Nasdaq: ITG), and copper miner CopperTech Metals (NYSE: CUX).
Investors are waiting for the IPO floodgates to open, but we’re not seeing it yet on the filings side. Korea-listed memory chip maker SK hynix (Nasdaq: SKHY) filed for a US IPO that could raise more than $25 billion, with its shares in Seoul up roughly +300% year-to-date. If you follow our IPO Winners & Losers Podcast, you know it was the sleeper mega-IPO in the pipeline. We also saw a rare filing from the consumer sector, womenswear brand Reformation (NYSE: REF).
Programming note: I’ll be out late next week for the holiday, so that newsletter will be a quick note from one of our analysts.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
Jun 26th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Apogee Therapeutics | APGE | 46.7% |
| Chime Financial | CHYM | 15.5% |
| PACS Group | PACS | 14.5% |
| Netskope | NTSK | 13.7% |
| Klaviyo | KVYO | 12.5% |
| Bottom 5 | ||
| Arm Holdings | ARM | -23.9% |
| Cerebras Systems | CBRS | -22.6% |
| EquipmentShare.com | EQPT | -22.2% |
| CoreWeave | CRWV | -18.1% |
| Pony AI | PONY | -17.6% |
| Sectors | ||
| Health Care | 13.8% | |
| Real Estate | 7.9% | |
| Financials | 4.6% | |
| Energy | 3.8% | |
| Consumer Staples | 0.7% | |
| Consumer Discretionary | -1.5% | |
| Industrials | -3.8% | |
| Technology | -4.2% | |
| Utilities | -7.4% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -4.3% last week vs. -2.0% for the S&P 500.
