Following the Independence Day lull, the July IPO market warmed up with two sizable biotechs, joined by two blank check companies. Surf Air Mobility (SRFM), which was expected to begin trading this past week, delayed its direct listing until later this month.
In the second-largest biotech IPO since the start of 2022, Apogee Therapeutics (APGE) upsized and priced at the high end to raise $300 million at an $815 million market cap. Founded by healthcare investors Fairmount Funds and Venrock as a spinout of Paragon Therapeutics, Apogee is developing differentiated monoclonal antibody therapies for various inflammatory and immunology indications. The company anticipates initiating a Phase 1 trial for its lead program in atopic dermatitis in the 2H23. Apogee finished up 25%.
In its second IPO attempt, Sagimet Biosciences (SGMT) priced a slightly upsized deal at the midpoint to raise $85 million at a $386 million market cap. Backed by NEA, Kleiner Perkins, and Baker Bros., Sagimet is developing selective fatty acid synthase inhibitors, initially for nonalcoholic steatohepatitis (NASH), a common liver disease for which there are currently no FDA-approved therapies. Its sole clinical candidate has completed a Phase 2a trial in NASH, and the company presented interim results for its Phase 2b trial in November 2022. Sagimet finished flat.
| 4 Filings During the Week of July 10th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Northann (NCL) |
$12M | Consumer Discretionary | Craft Capital |
| Makes and sells 3D printed vinyl flooring products. | |||
|
Gamer Pakistan (GPAK) |
$8M | Communication Services | WestPark Capital |
| Pre-revenue organizer of esports events in Pakistan. | |||
|
RanMarine Technology (RMRN) |
$17M | Technology | Aegis Cap. |
| Dutch maker of drones designed to remove pollution and waste from water surfaces. | |||
|
Turbo Energy (TURB) |
$6M | Industrials | Boustead |
| Spanish provider of PV energy storage equipment being spun out of Umbrella Solar Investment. | |||
This past week, we released our 2Q23 rankings for IPO law firms.
There are currently two deals scheduled for the week ahead, though only one qualifies for inclusion in our 2023 stats. We could see more sizable launches as issuers look to go public before the IPO market’s annual August break.
DTC retailer Oddity Tech (ODD) plans to raise $300 million at a $1.8 billion market cap. Oddity’s current portfolio includes cosmetics and personal care brands IL MAKIAGE and SpoiledChild, though the company believes its data- and tech-focused approach can support expansion in the highly competitive global beauty and wellness market. Oddity is profitable and has delivered strong though inconsistent growth. The company’s peers, as well as the year’s larger consumer IPOs, have traded well.
While not included below, holdover Opti-Harvest (OPHV) plans to raise $8 million at a $70 million market cap in a unit offering. Opti-Harvest provides equipment and related technology that allows commercial crop growers to better utilize sunlight. The company is very small and highly unprofitable.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Oddity Tech (ODD) Tel Aviv, Israel | $300M$1,753M | $27 – $3010,526,314 |
Goldman Morgan Stanley |
| Israel-based direct-to-consumer cosmetics and personal care products provider. | |||
Lock-ups will be expiring for two companies in the week ahead.
This past week, we released our 2Q23 rankings for IPO law firms.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/13/2023, the Renaissance IPO Index was up 43.6% year-to-date, while the S&P 500 was up 18.5%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 6.5% year-to-date, while the ACWX was up 12.9%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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