U.S. IPO Weekly Recap: The Summer Calendar Starts To Fill Up

There were no pricings during the shortened holiday week, as Korean BBQ chain Gen Restaurant Group (GENK) delayed its offering to next week. However, the calendar saw encouraging activity: Reinsurer Fidelis Insurance (FIHL), natural gas compression firm Kodiak Gas Services (KGS), and thrift store chain Savers Value Village (SVV) launched IPOs that could raise a combined total of more than $900 million. All three are scheduled to price in the week ahead. The IPO pipeline also got a boost, as five IPOs and one SPAC submitted initial filings.

Direct-to-consumer cosmetics and personal care products provider ODDITY Tech (ODD) filed to raise an estimated $300 million. The company calls itself a consumer tech platform, claiming it is differentiated by its investment in technology and data science, and believes its approach can support a portfolio of brands and services that aim to innovate and disrupt the global beauty and wellness market. Its first brand, IL MAKIAGE, was the fastest growing digital, direct-to-consumer beauty brand in the US through 2021, and it says that its second brand, SpoiledChild, launched in 2022, is scaling faster than IL MAKIAGE.

Inflammatory disease biotech Apogee Therapeutics (APGE) filed to raise $100 million, in a deal led by Jefferies. The company is developing differentiated biologics for inflammatory and immunology indications with a high unmet need. Apogee anticipates initiating a Phase 1 trial of its lead candidate in the second half of the year.

Liver disease and cancer biotech Sagimet Biosciences (SGMT) filed to raise $75 million after previously filing for an IPO in April 2021, only to withdraw in March 2022. Sagimet is developing a portfolio of internally-discovered, selective fatty acid synthase (FASN) inhibitors for the treatment of several diseases that result from the overproduction of the fatty acid, palmitate. Its lead candidate has completed a Phase 2a trial in NASH, and the company presented interim results for its Phase 2b trial in November 2022.

Packaging maker Unifoil Holdings (UNFL) filed to raise $15 million at a $68 million market cap. Unifoil’s recyclable paper-based products provide the appearance of foil and film laminates on consumer packaged goods, and end-users include Anheuser-Busch, Procter & Gamble, and Colgate-Palmolive.

Hong Kong-based construction subcontractor Ming Shing Group Holdings (MSGH.RC) filed to raise $15 million at a $60 million market cap. Ming Sheng Group mainly engages in wet trades works, such as plastering, tile laying, bricklaying, floor screeding, and marble works. The group primarily focuses on residential and commercial developments.

Nabors Energy Transition II (NETDU), the second SPAC formed by Nabors Industries, filed to raise $300 million to target the energy transition space. Its first SPAC (NETC) announced a merger with Australian solar developer Vast in February.

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Five IPOs are currently scheduled to debut in the week ahead, three of which plan to raise $100+ million.

Natural gas compression firm Kodiak Gas Services (KGS) plans to raise $328 million at a $1.5 billion market cap. Kodiak’s compression assets are primarily deployed in the Permian Basin and Eagle Ford Shale, serving blue-chip upstream and midstream customers. While its business is highly capital-intensive, the company is profitable on EBITDA, and its fixed revenue contracts provide visibility and steady cash flows.

The largest for-profit thrift store chain in North America, Savers Value Village (SVV) plans to raise $300 million at a $2.8 billion market cap. The company operates a total of 317 stores under various banners, offering a range of goods with an average unit retail under $5. Savers Value Village has delivered strong post-COVID growth, though it will be leveraged post-IPO at 2.5x net debt to LTM EBITDA.

Bermuda-based Fidelis Insurance (FIHL) plans to raise $298 million at a $2.1 billion market cap. Fidelis provides specialty insurance and property reinsurance, with operations in Bermuda, Ireland, and the UK. Bolstered by experienced management and underwriting teams, the company grew gross premiums written at a double-digit CAGR from 2017 to 2022. Fidelis currently relies heavily on a related party for origination, underwriting, and claims management.

Holdover GEN Restaurant Group (GENK) plans to raise $33 million at a $352 million market cap. GEN’s restaurants offer Korean and Korean-American food at 34 locations across California, Arizona, Nevada, Hawaii, Texas, New York, and Florida. Profitable and growing, the company believes its concept could have more than 250 locations in the US. GEN’s restaurants are currently concentrated in California, with two-thirds of its locations in the state.

OTC-listed Alliance Entertainment Holding (OTCPK:AENT) plans to raise $5 million at a $154 million market cap. Alliance is a global wholesaler, direct-to-consumer distributor, and e-commerce provider for the entertainment industry, acting as a gateway between branded manufacturers of entertainment content and retailers. The company is large with a diverse customer base, though it is exposed to significant inventory risk.

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IPO Market Snapshot

The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 6/22/2023, the Renaissance IPO Index was up 27.1% year-to-date, while the S&P 500 was up 15.1%. 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 10.4% year-to-date, while the ACWX was up 9.8%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.

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