Following the disappointing debut of Venture Global (VG), the IPO market needed a boost and got it in the healthcare sector.
Beta Bionics Inc. (BBNX), a company that developed a device to improve the health and quality of life of insulin-dependent individuals with diabetes, priced 12.0 million shares at $17.00—both the size and price were revised upward from its original terms. The stock opened 29.4% above its issue price at $22.00 and closed its debut session at $23.63, delivering a first-day gain of 39.0%.
Metsera (MTSR) priced 15.3mm shares (downsized from 17.2mm) at $18.00 ($1 above the range) and opened at $25.50 for a gain of 41.3% at first trade. We have never seen a biotech IPO downsize its IPO while pricing its transaction above range. Turns out, the company was seeking a specific cash-raise of $275 million and was not looking to allow further dilution. In our opinion this attributed to the “explosiveness” on day one.
Throughout the week, Infinity Natural Resources had to manage the Venture Global (VG) headwind — a previously broken IPO from the energy sector. VG traded more than 20% below issue while the Infinity team was on the road with investors. Ultimately, Infinity Natural Resources Inc. (INR) priced a full-size deal of 13.25mm shares at $20.00 (upper-half of the range) and opened at $22.16 for a gain of 11.3% at first trade.
Smithfield Foods Inc. (SFD) reworked its IPO terms at the eleventh hour and it still was not enough to hold issue on day one. The company priced a downsized transaction of 26.08mm shares (down from 34.8mm) at $20.00 (original range $23-$27) and opened at $21.05 for a gain of 5.3% at first trade. The stock was met with heavy selling pressure in the first fifteen minutes of trading as investors scrambled to the exit. Within an hour, the stock had broke its $20.00 issue price. It should be noted that SFD rebounded in subsequent sessions and was able to close the week in the black with a final Friday print of $21.50.
Maze Therapeutics (MAZE) priced 8.75mm shares (upsized from 7.85mm) at the midpoint of the range, $16.00, and opened at $16.12 for a gain of 0.8% at first trade. The stock traded as high as $17.00 in the first minute of trading before retreating to the issue price and trading steady the remainder of the day. We find this outcome particularly concerning as the underwriters felt the need to upsize the deal but could not provide those buyers much of a premium at first trade versus issue price.
There was a BDC on the schedule this week, MSC Income Fund, Inc. (MSIF), which priced 5.5mm shares at $15.53 and opened at $15.43 for a loss of 0.6% at first trade.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish