There were no pricings this past week, as the sole scheduled deal delayed Azitra (AZTR). But the calendar still saw some activity, with restaurant chain CAVA Group (CAVA) launching its $260 million offering; it’s expected to price in the week ahead. The IPO pipeline also got a pickup, with three issuers submitting initial filings.
Electric air travel company Surf Air Mobility (SRFM) filed for a direct listing on the NYSE. Based on share prices in recent private transactions, the company would command a market value of $574 million in its listing; it previously targeted a $1.4 billion valuation when it planned to go public via SPAC merger (terminated in November 2022).
Mexican real estate company Vesta Real Estate (VTMX) filed to raise $100 million. The company is profitable and has more than 200 properties in its portfolio. Vesta is currently listed on the Mexican Stock Exchange (VESTA), where it commands a market value of approximately $2.2 billion.
Pixie Dust Technologies (PXDT), a Japanese maker of personal care devices and spatial materials, filed to raise $19 million at a $143 million market cap.
Three companies are scheduled to price in the week ahead, two of which are eligible for inclusion in our IPO stats.
The first sizable restaurant play to go public since 2021, CAVA Group plans to raise $260 million at a $2.1 billion market cap. CAVA is a leading national Mediterranean chain, with more than twice the locations of its next largest competitor in the category. Expanding its footprint with the 2018 acquisition of Zoes Kitchen, the company owned and operated 263 CAVA restaurants across 22 states and DC as of 4/16/23 (including conversions). CAVA believes its fast-casual concept can support 1,000 locations in the next 10 years, though expansion will become more expensive once all Zoes conversions are complete.
Holdover Azitra plans to raise $8 million at a $65 million market cap. The biotech’s pipeline is led by a genetically modified strain of bacteria targeting orphan disease Netherton syndrome. Azitra’s lead candidate is expected to enter a Phase 1b trial in the 1H23, and the company has a joint development agreement with Bayer to develop bacterial microbes for consumer and cosmetic products.
While not included below, snack brand BranchOut Food (BOF) plans to raise $8 million at a $27 million market cap. BranchOut manufactures and markets plant-based dehydrated foods. Very small and highly unprofitable, the company markets and sells its products through physical retail channels like grocery chains and natural food outlets, on its website, and on Amazon.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| CAVA Group (CAVA) Washington, DC | $260M$2,095M | $17 – $1914,444,444 | JPMorgan Jefferies |
| Fast-casual Mediterranean restaurant chain with over 260 locations across the US. | |||
| Azitra (AZTR) Branford, CT | $8M$65M | $4.50 – $5.501,500,000 | ThinkEquity |
| Phase 1-ready dermatology biotech developing engineered bacterial therapies. | |||
No Street research or lock-up expirations are expected for the week ahead.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/8/2023, the Renaissance IPO Index was up 26.1% year-to-date, while the S&P 500 was up 12.7%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 7.5% year-to-date, while the ACWX was up 8.7%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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