The third quarter wrapped up with four IPOs and eight pipeline additions.
Oncology biotech Adlai Nortye (ANL) raised $58 million at an $849 million market cap. The company originally planned to raise $72 million in August but never priced; it removed and then set new terms earlier this month. Operating through subsidiaries in the US and China, Adlai Nortye’s lead candidate (in-licensed from Novartis) is a kinase inhibitor designed to act against solid tumors that is currently undergoing a Phase 3 trial. The company expects to submit an NDA to the FDA seeking potential accelerated approval in the 2H24. Adlai Nortye finished the week down 35%.
Hong Kong-based marketing services provider VS Media (VSME) raised $10 million at a $110 million market cap. VS Media manages a global network of digital creators, who create and publish content to social media platforms. VS Media finished the week down 14%.
Japan-based residential property developer Lead Real Estate (LRE) priced at the low end to raise $8 million at a $95 million market cap. Lead Real Estate is a developer of luxury residential properties in Japan, operates hotels in Tokyo, and leases apartment building units to individual customers in Japan and Dallas, Texas. Lead Real Estate finished the week down 30%.
Gamer Pakistan (GPAK), a pre-revenue organizer of esports events in Pakistan, priced at the low end to raise $7 million at a $102 million market cap. Gamer Pakistan aims to create collegiate and professional esports events. The company did not appear to begin trading on Friday as expected.
| 4 IPOs During the Week of September 25th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/29 |
|
Gamer Pakistan (GPAK) |
$7M | $102M | -11% | +0% | N/A |
| Pre-revenue organizer of esports events in Pakistan. | |||||
|
VS Media (VSME) |
$10M | $110M | 0% | -24% | -14% |
| Hong Kong-based provider of content creator-driven marketing services. | |||||
|
Lead Real Estate (LRE) |
$8M | $95M | -48% | -11% | -30% |
| Luxury residential property developer in Japan. | |||||
|
Adlai Nortye (ANL) |
$58M | $849M | -4% | -35% | -35% |
| Phase 3 biotech developing immunotherapies for various cancers. | |||||
Eight issuers submitted initial filings this past week. French chronic disease biotech Abivax (ABVX) filed to raise $100 million. Gene therapy biotech Lexeo Therapeutics (LXEO) filed to raise $100 million. Japanese property reseller Metros Development (MTDC) filed to raise $17 million. Chinese logistics services provider OUI Global (TKE) filed to raise $13 million at a $72 million market cap. Cross-border logistics provider Armlogi Holding (BTOC) filed to raise $11 million at a $231 million market cap. Singapore-based steel fabricator Brilliance Group (KHIW) filed to raise $11 million at a $90 million market cap. Cancer biotech Kairos Pharma (KAPA) filed to raise an estimated $10 million. Skincare products’ maker Elevai Labs (ELAB) filed to raise $8 million at an $87 million market cap.
| 8 Filings During the Week of September 25th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
|
Abivax (ABVX) |
$100M | Health Care | Morgan Stanley |
| Late-stage French biotech developing therapies for chronic inflammatory diseases. | |||
|
Elevai Labs (ELAB) |
$8M | Consumer Staples | Univest Sec. |
| Makes physician-dispensed skincare products. | |||
|
Kairos Pharma (KAPA) |
$10M | Health Care | Boustead |
| Phase 2 biotech developing therapies for cancer. | |||
|
Lexeo Therapeutics (LXEO) |
$100M | Health Care | JPMorgan |
| Phase 1 biotech developing gene therapies for cardio and neuro diseases. | |||
|
OUI Global (TKE) |
$13M | Industrials | Pacific Century Securities |
| Transportation logistics provider in China. | |||
|
Metros Development (MTDC) |
$17M | Real Estate | Boustead |
| Purchases and resells underdeveloped properties in Japan. | |||
|
Armlogi Holding (BTOC) |
$11M | Industrials | Prime Num. Cap. |
| Provides cross-border warehousing and logistics services. | |||
|
Brilliance Group (KHIW) |
$11M | Industrials | Network 1 |
| Singapore-based steel fabricator specializing in structural steel and metal works. | |||
This past week, we released our reviews of the 3Q23 US and global IPO markets, where we cover activity over the past quarter, IPO performance, our outlook going forward, and more.
The October IPO market looks like it will be off to a quiet start, with no IPOs currently scheduled for the week ahead. The impending US government shutdown means it could stay that way.
Leading the week’s potential headlines, luxury sandal brand Birkenstock (BIRK) is reportedly set to launch its US IPO on the first Monday of the month, with plans to price the following week. But if the government shuts down, those plans, as well as those of other large issuers targeting October IPOs, will likely be put on hold.
Street research is expected for two companies in the week ahead, and lock-up periods will be expiring for three companies.
This past week, we released our review of the 3Q23 US IPO markets, where we cover activity over the past quarter, IPO performance, our outlook going forward, and more.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/28/2023, the Renaissance IPO Index was up 27.0% year-to-date, while the S&P 500 was up 13.4%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Kenvue (KVUE). The Renaissance International IPO Index was down 19.7% year-to-date, while the ACWX was up 5.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
Original Post
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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