U.S. IPO Weekly Recap: October IPO Market Wraps Up With Energy MLP And Short-Term Rental Operator

Two companies completed listings this week, while three SPACs and three IPOs submitted initial filings.

Oil and gas producer Mach Natural Resources (MNR) priced at the bottom of the range to raise $190 million at a $1.8 billion market cap. Focused on acquiring distressed assets, the company uses horizontal wells to tap into previously inaccessible reserves, largely in the Anadarko Basin. The company plans to offer a dividend, although some investors may be turned off by corporate governance issues. Mach Natural Resources finished the week down -1%.

Short-term rental operator reAlpha Tech (AIRE) completed its direct listing on the Nasdaq. Shares opened for trading at $23.01 per share, more than double the $10 price paid for its shares in its January 2023 Regulation A offering. It soared from there, as low trading volumes contributed to wild price swings, but plummeted in the aftermarket. reAlpha Tech finished up 1% from its opening price.

Three IPOs and three SPACs submitted initial filings this past week. Personal care appliance wholesaler Raytech Holding (RAY) filed to raise $14 million at an $86 million market cap. Video compression products provider Reticulate Micro (RMIC) filed to raise $12 million at a $75 million market cap. Electric car-sharing platform provider EV Mobility (EVMO) filed to raise $9 million at a $59 million market cap. Blank check Ag & Nat Solutions Acquisition (ANSCU) filed to raise $300 million to target decarbonization in agriculture, while FG Merger II (FGIIU.RC) filed to raise $75 million to target financial services businesses, and JVSPAC Acquisition (JVSAU) filed to raise $50 million to target lifestyle-focused tech businesses.

Week Ahead

Two listings are currently scheduled for the week ahead, though only one qualifies for inclusion in our stats. Some small issuers may also join the calendar late.

While it looks relatively quiet for now, a couple larger issuers are eligible to launch in the week ahead: hospital billing platform Waystar (WAY), which disclosed updated financials this past week ahead of its estimated $500 million IPO, and reinsurer Hamilton Insurance Group (HG).

Shimmick (SHIM) plans to raise $50 million at a $333 million market cap. The company provides water and other critical infrastructure solutions across the US, primarily California, which accounted for over half of the company’s revenue in 2022. Shimmick has a project backlog worth $1+ billion, subject to cancellation and adjustments, and its focus on the public sector provides revenue stability.

While not included in the table below, mortgage broker Pineapple Financial (PAPL) plans to raise $4 million at a $38 million market cap. The company currently operates exclusively in Canada.

Street research is expected for one company, and lock-up periods will be expiring for two companies.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/26/2023, the Renaissance IPO Index was up 18.5% year-to-date, while the S&P 500 was up 9.2%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Airbnb (ABNB). The Renaissance International IPO Index was down 25.8% year-to-date, while the ACWX was up 1.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.

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