U.S. IPO Weekly Recap: Nano-Cap Debuts In Short And Quiet Holiday Week

There was one pricing this past week, although it did not meet the criteria for our IPO stats. Two small IPOs and two SPACs submitted initial filings.

While not included in our stats, Hong Kong-based wealth manager Prestige Wealth (PWM) raised $5 million at a $45 million market cap. The company provides wealth management and asset management services primarily to high and ultra-high net worth clients, most of whom reside in mainland China and Hong Kong. Prestige Wealth finished up 282%.

Chinese car and car part retailer Autozi Internet Technology (AZI) filed to raise $29 million. Much of the company's revenue is through the sale of parallel import cars, as well as auto parts and auto accessories.

Texas-based oil and gas E&P Rise Oil & Gas (RISE) filed to raise $12 million. Formed by former executives from Ring Energy, the company has acquired undeveloped property in the Texas portion of the Permian basin. Rise Oil & Gas currently has no revenue generating operations.

Haymaker Acquisition 4 (HYIV), the fourth SPAC led by Steven and Andrew Heyer, filed to raise $200 million to target consumer businesses. All three SPACs that the pair have brought to market have completed mergers, though only one trades above the $10 offer price.

Spark I Acquisition (SPKLU), a SPAC formed by SparkLabs Group, filed to raise $100 million to target late-stage tech startups with ties to Asia. The SPAC aims to merge with a disruptive company with an enterprise value of over $1 billion.

Week Ahead

Two companies are scheduled to begin trading in the week ahead, only one of which is eligible for inclusion in our 2023 stats. While the calendar is quiet for now, we expect to see a steady increase in larger IPOs through July. A handful of issuers are eligible to launch in the week ahead, including cosmetics company ODDITY Tech (ODD) and biotechs Apogee Therapeutics (APGE) and Sagimet Biosciences (SGMT).

Aviation company Surf Air Mobility (SRFM) is slated to complete the first direct listing of 2023, with an estimated market value at listing of nearly $600 million. Surf Air provides a regional air mobility platform and intends to develop powertrain technology to electrify existing fleets with its commercial partners, though these partners have limited experience in electrification. Together with Southern Airways (pending merger), the company's footprint covers 44 cities, serving over 99,000 passengers with over 18,000 departures in the 1Q23. Both Surf Air and Southern are highly unprofitable with going concern warnings.

While not included below, agriculture equipment maker 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 growers to better utilize sunlight. The company is very small and highly unprofitable.

Street research is expected for two companies in the week ahead, and lock-ups will be expiring for two companies. This past week, we released our 2Q23 IPO rankings for the Big Four accounting firms.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/6/2023, the Renaissance IPO Index was up 30.9% year-to-date, while the S&P 500 was up 15.9%. 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 12.6% year-to-date, while the ACWX was up 7.8%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.

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