US IPO Weekly Recap: The IPO Market Remains Frozen In A 1 IPO Week

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The IPO market stayed relatively quiet, with only one IPO and one SPAC pricing this past week. Pipeline activity maintained its slow pace, with only two small IPOs and one SPAC submitting initial filings.

AN2 Therapeutics (ANTX) priced its upsized IPO at the midpoint to raise $ 69 million at a $ 296 million market cap. The company is developing an in-licensed therapy for non-tuberculous mycobacterial lung diseases. AN2 Therapeutics aims to begin its Phase 2/3 trial by the end of the 1H22 and expects data mid-2023.

RF Acquisition (RFACU) was the sole SPAC to come to market, and raised $ 100 million to target new economy businesses in southeast Asia.

2 IPOs During the Week of March 21st, 2022

Issuer

Business

Deal

Size

Market

Cap

at IPO

Price vs.

Midpoint

First

Day

Return

Return

to

03/25

AN2 Therapeutics (ANTX) $ 69M $ 296M 0% + 3% + 3%
Phase 2/3-ready biotech developing an in-licensed therapy for NTM lung disease.
RF Acquisition (RFACU) $ 100M $ 127M 0% + 0% + 0%
Blank check company targeting new economy businesses in Southeast Asia.

Two IPOs submitted initial filings this past week. Taiwanese carbon fiber part manufacturer J-Star Holding (YMAT) and hemp cigarette manufacturer Hempacco (HPCO) both filed to raise $ 17 on the Nasdaq.

Aimfinity Investment I (AIMAU) was the sole SPAC to submit an initial filing. The company filed to raise $ 70 million to target the technology sector.

3 Filings During the Week of March 21st, 2022

Issuer

Business

Deal

Size

Sector

Lead

Underwriter

Aimfinity Investment I (AIMAU) $ 70M SPAC Tiger Brokers
Blank check company targeting the technology sector.
Hempacco (HPCO) $ 17M Consumer Discretionary Boustead
Manufactures nicotine-free cigarettes made from hemp.
J-Star Holding (YMAT) $ 17M Consumer Discretionary ViewTrade
Taiwan-based maker of carbon fiber parts for bicycles, rackets, and other goods.

No IPOs are currently scheduled to price in the week ahead, though a few SPACs may join the calendar during the week.

There are a number of large issuers waiting in the pipeline once the IPO market becomes more amenable. Some of these deals include Bausch Health spin-off Bausch + Lomb (BLCO), mattress retailer Mattress Firm (MFRM), car-sharing platform Turo (TURO), and digital ad firm Aleph Group (ALEF).

Lock-up periods will be expiring for up to five companies.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/24/22, the Renaissance IPO Index was down 22.5% year-to-date, while the S&P 500 was down 4.8%.

Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 22.9% year-to-date, while the ACWX was down 6.2%.

Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK: VOLAF) and Zhejiang Kuaishou Information Technology (OTCPK: KUASF).

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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