U.S. IPO Weekly Recap: Tech IPOs Pop As End Of March Approaches

Four IPOs priced this past week, joined by one SPAC.

After upping its terms at the start of the week, chipmaker Astera Labs (ALAB) priced above the raised range to raise $713 million at a $6.3 billion market cap. Astera offers its Intelligent Connectivity Platform, which comprises semiconductor-based connectivity products and its software suite. Its products are built specifically for data center and AI infrastructure, positioning it well to benefit from future buildouts. The company has delivered strong growth, though its revenue is concentrated in its top three customers. Astera popped 72% on day one and finished the week up 94%.

Social media platform Reddit (RDDT) priced at the high end to raise $748 million at a $6.4 billion market cap. The platform has over 100k+ active interest-based “subreddits,” serving 76 million daily users. Reddit has delivered solid growth and shown potential for significant economies of scale. The company is still unprofitable, though, and average revenue per user declined in the most recent quarter. Reddit finished up 35%.

Peruvian healthcare company Auna (AUNA) priced below the range to raise $360 million at a $903 million market cap. Originally founded as a healthcare coverage provider, Auna now also operates 15 hospitals and 16 other facilities across Mexico, Peru, and Colombia. The company has successfully expanded its footprint, and its underpenetrated target markets allow room for continued growth. It is highly leveraged post-IPO. Auna finished down 20%.

Hong Kong-based financial PR firm Intelligent Group (INTJ) priced at the low end to raise $8 million at a $53 million market cap. The firm provides services to clients during mergers and acquisitions, IPOs, and restructurings on a variety of complex businesses. Intelligent Group is small and saw revenue decline in FY22. Intelligent Group finished down 47%.

SPAC Black Hawk Acquisition (BKHAU) raised $69 million in its upsized offering. The company plans to focus on businesses with compelling long-term growth potential and highly defensible market positions.

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Two sizable issuers submitted initial filings. Utility infrastructure services carve-out Centuri Holdings (CTRI) filed to raise an estimated $500 million, and digital rebate platform Ibotta (IBTA) filed to raise an estimated $250 million.

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Three listings are currently scheduled for the week ahead, although other issuers may join the calendar throughout the week.

Phase 1 oncology biotech Boundless Bio (BOLD) plans to raise $100 million at a $396 million market cap. The company is focused on developing therapies for oncogene-amplified tumors by targeting extrachromosomal DNA (ecDNA). Its lead ecDTx, BBI-355, is a novel, oral, selective inhibitor of checkpoint kinase 1, which manages ecDNA replication and transcription in cancer cells. BBI-355 is currently being studied in a first-in-human, Phase 1/2 trial in patients with oncogene-amplified cancers, with preliminary data expected in the 2H24.

Singapore-based telehealth company Mobile-Health Network Solutions (MNDR) plans to raise $10 million at a $153 million market cap. The company provides services through its MaNaDr platform, where users throughout the APAC region can access a range of telehealth solutions, comprising teleconsultation services and personalized services. The company also operates one brick-and-mortar GP clinic in Singapore.

Australia-based fitness program provider Alta Global Group (MMA) plans to raise $7 million at a $58 million market cap. Alta offers a platform for martial arts and combat sports, featuring four core products: the Warrior Training Program, UFC Fight Fit Program, Alta Academy, and the Alta Community. To date, the company has monetized its Warrior Training Program.

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Street research is expected for one company in the week ahead, and three lock-up periods will be expiring.

IPO Market Snapshot

The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 3/21/2024, the Renaissance IPO Index was up 11.1% year-to-date, while the S&P 500 was up 10.3%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Coinbase Global (COIN). The Renaissance International IPO Index was down 0.5% year-to-date, while the ACWX was up 4.9%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Wise and Porsche.

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