U.S. IPO Weekly Recap: WeRide Reschedules While 6 New Filers Join The Pipeline

This week was another slow week for pricings, with two companies making their public debut, along with three SPACs. WeRide (WRD) was set to break the August drought for large IPOs, but pushed back its expected pricing date to next week. Six new companies and one SPAC filed this week. They were led by HMH Holding (HMHW), which filed to raise $100 million.

YXT.com (YXT) completed its $25 million IPO at a $599 million market cap. The Chinese provider of corporate learning software uses a combination of in-house development and external collaboration to offer over 8,200 courses covering approximately 20 industries and served over 2,400 subscription customers as of March 31, 2024. It traded down 9%.

Holdover Actuate Therapeutics (ACTU) also raised $22 million. After revising terms several times and raising less than half of the original proceeds, the company, which is developing inhibitor-based cancer therapies, went public at a $161 million market cap. Actuate’s lead candidate, Elraglusib, is currently being evaluated in a randomized Phase 2 trial in patients with metastatic pancreatic cancer, with top line results expected in the 1Q25. The trial is not expected to be pivotal. It finished the week up 11%.

Three SPACs also priced. SilverBox IV (SBXD.U) and HCM II Acquisition (HONDU) both raised $200 million while Cantor Equity Partners (CEP) raised $100 million.

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On the filing side, offshore-focused drilling equipment and aftermarket service provider, HMH Holding, filed to raise $100 million. A batch of smaller issuers also submitted initial filings during the week, including automated parking garage developer Huachen Technology (HCAI), which filed to raise $25 million. Chinese plastics distributor Texxon (NPT) and recycling truckload services company Toppoint Holdings (TOPP) both filed to raise $17 million. Legacy Education (LGCY) provides career-focused training in the healthcare industry. It filed to raise $10 million. Thoughtful Media (TMGX) also filed and set terms to raise $6 million. It connects advertisers, brands, and merchants with over 10,000 influencers to targeted audiences across Southeast Asia.

SPAC FACT II Acquisition (FACTU) filed to raise $175 million.

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Three IPOs are currently scheduled to list in the week ahead, all based in the Asia Pacific region. One SPAC is also expected to price.

China-based autonomous vehicle systems developer WeRide is scheduled to raise $110 million at a $5.7 billion market cap, after delaying its listing this past week at the last minute. Bosch has indicated on the majority of the offering, while other investors are kicking in $321 million in concurrent private placements. At that size, it would be largest deal completed during the month of August since 2021. WeRide is developing autonomous driving products and services, including Level 4 autonomy. It is currently operating and testing its products throughout 30 cities in 7 countries, and also offers paid autonomous robotaxi services to the public. It has accumulated 10,000 vehicle orders. It also sells robobuses, robosweepers, and related sensor suites.

Singapore-based Holdover Trident Digital Tech (TDTH) is scheduled to raise $11 million at $387 million market cap. Through its business consulting segment, Trident provides a variety of services to SMEs in Singapore, including business strategy advisory, design of business workflows and processes, brand and reputation, and digital marketing. The company also offers tailor-made IT solutions and packaged software solutions through its IT customization segment.

Hong Kong financial communications firm Powell Max (PMAX) is set to raise $8 million at a $74 million market cap. Powell Max provides financial communications services that support capital market compliance and transaction needs for corporate clients and their advisors in Hong Kong. Its services include financial printing, corporate reporting, communications, and language support services from inception to completion.

Blank check YHN Acquisition I (YHNAU), led by executives from boutique SPAC firm Norwich Capital, plans to raise $60 million.

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Street research is expected for eight companies in the week ahead, and one lock-up period will be expiring.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/15/2024, the Renaissance IPO Index was up 7.0% year-to-date, while the S&P 500 was up 17.2%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Nu Holdings (NU). The Renaissance International IPO Index was down 6.9% year-to-date, while the ACWX was up 7.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Barito Renewables Energy and Amman Mineral Internasional.

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