U.S. IPO Weekly Recap: May IPO Market Ends With A Quiet Week

There were no IPOs this past week, as the sole scheduled offering (AZTR) was delayed to the week ahead. Along with no post-Memorial Day launches, the pipeline was quiet, with no new initial filings. The summer IPO market is off to a slow start coming out of May, which was the year’s slowest month for IPOs to date but also the biggest for proceeds since December 2021. However, movement in the pipeline indicates a potential pickup in the coming months, with large initial filings from restaurant chain CAVA Group (CAVA) and diagnostics company Advanced Biomed (ADVB), as well as updates from large companies already in the pipeline (FOGO, MNX, KGS, SVV, FIHL).

Just one company is currently scheduled to list in the week ahead, although other small issuers may join the calendar during the week. Holdover Azitra (AZTR) may raise $12 million at a $70 million market cap. The biotech’s pipeline is led by a genetically modified strain of bacteria targeting orphan disease Netherton syndrome. Azitra’s lead candidate is expected to enter a Phase 1b trial in the 1H23, and the company has a joint development agreement with Bayer to develop bacterial microbes for consumer and cosmetic products.

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IPO Market Snapshot

The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 6/1/2023, the Renaissance IPO Index was up 22.4% year-to-date, while the S&P 500 was up 10.8%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 8.5% year-to-date, while the ACWX was up 6.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.

One lock-up period will be expiring in the week ahead.

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