Pipeline Update: Three IPO Week on Tap as market gives “Green Light” after Fed Meeting

Could the recent decision by the Federal Reserve (Fed) to raise rates by just 25bps and signal only a “couple more” hikes” be a flashing sign to equity capital markets that things will begin to open up?

By the look of the activity on Thursday and Friday, that could be the case. Three companies elected to set terms for their IPO after the Fed’s decision on Wednesday marking one of the busier weeks in more than 16 months. Then on Friday, Structure Therapeutics (GPCR) became the first biotech IPO to debut with a high-end pricing since October 2021.  GPCR opened 67% above its issue price and closed at $26.00 versus a $15.00 pricing.

In order for sustained activity…we will need to see new filings dramatically increase. We have been told that there is a “backlog” of IPOs — we are just waiting on these companies to show their hands.

To summarize a conversation with a syndicate source after Wednesday, they said that bankers are likely “licking their chops” to get back to business.

We would be in that camp as well.

TERMS ADDED
Company: Hesai Group
Symbol: HSAI (Nasdaq)
Description: Hesai Technology is the global leader in three-dimensional light detection and ranging (LiDAR) solutions.
Shares: 9 million ADSs
Price Range: $17.00-$19.00
Market Cap: $2.1b-$2.4b
Trade Date: Thursday, 2/9
Underwriters: Goldman Sachs, Morgan Stanley, Credit Suisse, Huatai Securities
Link to Prospectus: Terms Added 2-02-23

Company: Mineralys Therapeutics, Inc.
Symbol: MLYS (Nasdaq)
Description: They are a clinical-stage biopharmaceutical company focused on developing medicines to target diseases driven by abnormally elevated aldosterone.
Shares: 10 million
Price Range: $14.00-$16.00
Market Cap: $519m-$593m
Trade Date: Friday, 2/10
Underwriters: BofA Securities, Evercore ISI, Stifel, Guggenheim Securities, Credit Suisse, Wells Fargo
Link to Prospectus: Terms Added: 2-2-23

Company: Nextracker Inc.
Symbol: NXT (Nasdaq)
Description: They are a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world.
Shares: 23.3 million
Price Range: $20.00-$23.00
Trade Date: Friday, 2/10
Underwriters: JP Morgan, BofA Securities, Citigroup, Barclays
Co-Manager(s): Truist Securities, HSBC, BNP PARIBAS, Mizuho, ScotiaBank, KeyBanc Capital, SMBC Nikko, BTIG, UniCredit, Roth Capital
Link to Prospectus: Terms Added: 2-1-23

NEW FILINGS

Company: ​ Atlas Energy Solutions Inc.
Symbol: AESI (NYSE)
Description: They are a leading provider of proppant and logistics services to the oil and natural gas industry within the Permian Basin of West Texas and New Mexico, the most active oil and natural gas basin in North America.
Shares: TBD
Price Range: TBD
Trade Date: TBD
Underwriters: Goldman Sachs, BofA Securities, Piper Sandler, RBC Capital Markets, Barclays, Citigroup
Co-Manager(s): Raymond James, Stephens, Capital One Securities, Pickering Energy Partners, Drexel Hamilton
Link to Prospectus: Filed 1-31-23