Anyone hoping for the IPO floodgates to open after Labor Day will need to keep waiting.
The US IPO market had 5 consecutive down days this week for a -6.4% loss, compared to a -3.3% decline for the S&P 500.
In our new 2022 Fall Preview we noted that the year is on track to be the slowest in terms of proceeds in our firm’s 31-year history. And yet, we believe the market is poised for a pickup, based on secondary offerings and the number of large deals refreshing their IPO filings. Of course, right now it doesn’t take much to constitute a pickup.
Micro-cap madness continued this week. Four small companies went public (HPCO, ATXG, SHPH, BIAF), two of which made our cut-off. On Wednesday, micro-cap Chinese garment maker Addentax (Nasdaq: ATXG) — a garment maker of all things — closed its first day up an astonishing 13,031%, another Renaissance record. The latest “pop-and-drop” deal proceeded to fall 99% from there.
COVID-19 vaccine developer BioNTech was the IPO Index’s winner, up +3.7% on news that the FDA cleared its Omicron booster. DevOps software seller GitLab dropped -25.0% on an analyst downgrade ahead of earnings next week, as investors decide that only the most elite software firms deserve a sales multiple above 30x.
Enjoy your weekend,
Bill Smith
Co-Founder and CEO
Renaissance Capital
|
Biggest price changes through
Sep 2nd
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| BioNTech | BNTX | 3.7% |
| GFL Environmental | GFL | 1.5% |
| Legend Biotech | LEGN | 1.4% |
| Endeavor Group Holdings | EDR | 0.9% |
| Robinhood Markets | HOOD | 0.7% |
| Bottom 5 | ||
| GitLab | GTLB | -25.0% |
| HashiCorp | HCP | -20.7% |
| Full Truck Alliance | YMM | -17.3% |
| ZIM Integrated Shipping Services | ZIM | -16.4% |
| DigitalOcean | DOCN | -13.3% |
| Sectors | ||
| Health Care | -3.2% | |
| Financials | -3.8% | |
| Consumer Staples | -4.2% | |
| Industrials | -4.8% | |
| Technology | -7.2% | |
| Consumer Discretionary | -7.6% | |
| Real Estate | -9.8% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -6.4% last week vs. -3.3% for the S&P 500.
