Four smaller IPOs priced this past week, joined by one SPAC.
The biggest news came from the pipeline, with product assessment services provider UL Solutions (ULS) filing for an estimated $1 billion IPO, followed by a sizable filing from metabolic disease biotech Carmot Therapeutics (CRMO). Other large issuers on file provided updates ahead of potential post-Thanksgiving launches, including hospital billing platform Waystar (WAY), car sharing platform Turo (TURO), and homebuilder Smith Douglas (SDHC).
Hong Kong-based DDC Enterprise (DDC) downsized and priced below the range to raise $33 million at a $180 million market cap. Starting as an online recipe platform, DDC has since shifted to sales of prepared food products under its DayDayCook brand, as well as private label items. Revenue growth was weighed down by China’s zero-COVID policy in 2022, though it reaccelerated in the 1H23. DDC finished down 27%.
Construction firm Shimmick (SHIM) downsized and priced well below the range to raise $25 million at a $203 million market cap. The company specializes in public water infrastructure, including dams, reservoirs, water treatment, and desalination plans. Its project backlog is worth $1+ billion, though it is subject to cancellation and adjustments. Shimmick finished down 4%.
Service robot developer Richtech Robotics (RR) raised $11 million at a $321 million market cap. With a focus on the hospitality industry, Richtech’s robots are meant to run and bus restaurant tables and provide hotel room service delivery, among other tasks. The company will require significant additional capital to fund its growth plans. Richtech Robotics finished up 5%.
Sports recruiting platform Signing Day Sports (SGN) downsized and priced at the midpoint to raise $8 million at a $58 million market cap. Signing Day Sports provides a digital platform to help student athletes get discovered and recruited by coaches and recruiters across the country. The company is very small and highly unprofitable. Signing Day Sports finished down 68%.
| 5 IPOs During the Week of November 13th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 11/17 |
|
Richtech Robotics (RR) |
$11M | $321M | 0% | +5% | +5% |
| Develops and sells service robots for the hospitality and other industries. | |||||
|
Global Lights Acquisition (GLACU) |
$60M | $78M | 0% | +2% | +2% |
| Blank check company targeting businesses focused on sustainability. | |||||
|
Shimmick (SHIM) |
$25M | $203M | -36% | -9% | -4% |
| California-based construction firm specializing in public water infrastructure. | |||||
|
DDC Enterprise (DDC) |
$33M | $180M | -19% | -27% | -27% |
| Sells prepared food products and operates a recipe sharing platform in China. | |||||
|
Signing Day Sports (SGN) |
$6M | $58M | 0% | -61% | -68% |
| Operates a recruiting platform for student athletes. | |||||
| 9 Filings During the Week of November 13th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Alta Global Group (ALGG) |
$17M | Consumer Discretionary | ThinkEquity |
| Provides martial art and combat sport training through a network of partner gyms. | |||
|
Bayview Acquisition (BAYAU) |
$50M | SPAC | Chardan |
| Blank check company targeting businesses in Asia. | |||
|
Carmot Therapeutics (CRMO) |
$100M | Health Care | JPMorgan |
| Phase 2 biotech developing therapies for diabetes and obesity. | |||
|
IB Acquisition (IBAU.RC) |
$100M | SPAC | I-Bankers |
| Blank check company targeting fintech, healthcare, entertainment, and consumer goods. | |||
|
Key Mining (KMCM) |
$25M | Materials | Titan Partners |
| Florida-based mining company with two exploration-stage projects in Chile. | |||
|
Telomir Pharmaceuticals (TELO) |
$14M | Health Care | Kingswood Cap. Mkts. |
| Preclinical biotech developing an oral small molecule for age- and cancer-related conditions. | |||
|
Samfine Creation Holdings (SFHG) |
$11M | Industrials | Revere Sec. |
| Hong Kong-based provider of printing services. | |||
|
UL Solutions (ULS) |
$1,000M | Industrials | Goldman |
| Provides product testing, inspection, and certification services and related software. | |||
|
YY Group (YYGH) |
$7M | Industrials | Tiger Brokers |
| Provides smart cleaning services and a labor marketplace in Singapore and Malaysia. | |||
The IPO calendar looks quiet for the Thanksgiving week, although some small issuers may join last minute.
While there are no deals currently scheduled, rumbles in the pipeline mean that we could see some activity in December. Potential post-Thanksgiving launches include recent filers like product testing company UL Solutions (ULS), Chinese EV brand ZEEKR (ZK), and specialty insurer Fortegra (TFG). Other large filers that have provided updates recently include hospital billing platform Waystar (WAY), car-sharing platform Turo (TURO), homebuilder Smith Douglas (SDHC), and helicopter transport company Phi Group (ROTR).
Street research is expected for two companies in the week ahead, and one lock-up period will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 11/16/2023, the Renaissance IPO Index was up 30.8% year-to-date, while the S&P 500 was up 19.1%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Palantir Technologies (PLTR) and Kenvue (KVUE). The Renaissance International IPO Index was down 17.1% 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 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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