Weekly Recap
While the calendar was quiet this past week, six IPOs joined the pipeline, two of which we estimate could raise $1 billion or more.
Sports equipment and apparel maker Amer Sports (AS) filed to raise an estimated $2 billion. The Finland-based company’s portfolio contains major brands like Arc’teryx, Salomon, Wilson, and Louisville Slugger, and its products are sold in over 100 different countries, including in over 300 owned retail stores. Amer Sports was previously listed on the Nasdaq Helsinki until 2019, when a consortium of investors took it private.
Healthcare services provider BrightSpring Health Services (BTSG) filed to raise an estimated $1 billion, after a previous attempt to go public in 2021. The company provides home and community-based healthcare services, and states it serves more than 400,000 patients daily through its 10,000 clinical providers and pharmacist. BrightSpring is backed by KKR and Walgreens (WBA).
Three biotechs filed to raise $100 million. Bladder cancer-focused biotech CG Onology (CGON) filed to raise $100 million. The company is developing an oncolytic immunotherapy for bladder cancer, and expects topline data from its ongoing Phase 3 trial by the end of 2024. Another oncology biotech, ArriVent Biopharma (AVBP) filed to raise $100 million. The company is developing a novel kinase inhibitor for cancer, and expects topline data from its ongoing Phase 3 trial by 2025. Preclinical biotech Metagenomi (MGX) filed to raise $100 million. The company is developing therapies using metagenomics-derive genome editing.
The Week Ahead
The 2024 IPO market is here, and it’s kicking off the new year with a large deal. Smith Douglas Homes (SDHC) is scheduled to go public in the week ahead in what could be the year’s first US IPO.
Georgia-based homebuilder Smith Douglas plans to raise $150 million at a $1.0 billion market cap. Operating in the Southeastern and Southern US, the company builds and sells single-family homes, catering to first-time home buyers and empty nesters. The company saw solid growth in home sales in 2022, and elevated home prices helped its gross margin. Its business is fairly concentrated, with nearly half of 2022 revenue coming from Atlanta.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size/Market Cap | Price Range/Shares Filed | Top Bookrunners |
| Smith Douglas Homes (SDHC)Woodstock, GA – Homebuilder in the southeastern US focused on single-family homes. | $150M /$1,009M | $18 – $21/7,692,308 | JP Morgan, BofA |
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/4/2024, the Renaissance IPO Index was down 6.8% year-to-date, while the S&P 500 (SP500, SPX) was down 1.7%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Coinbase Global (COIN). The Renaissance International IPO Index was down 3.1% year-to-date, while the ACWX was down 1.6%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise and Kuaishou.
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