The summer doldrums have hit the IPO market, in a week with one Hong Kong investment bank, one Israeli medical device maker, and two SPACs.
Hong Kong-based AMTD International ( HKIB ) priced last Friday but began trading on Monday, raising $174 million at a market cap of $1.9 billion. AMTD itself served as lead manager. The company traded up 20% on its first day, but with below-average volume. AMTD's wealth management business has seen strong growth, and it has benefited from active deal flow out of China and Hong Kong, but those banking fees could be at risk if China's economy slows.
InMode ( INMD ) raised $70 million by pricing at the low end, and finished the week with a 1% loss, bucking the trend of strong returns from fast-growing device makers. The Israeli maker of minimally-invasive medical equipment used in aesthetic procedures grew sales by 87% in 2018 with a 22% net margin, though a few of its core products saw sales decline in the most recent quarter.
Thunder Bridge Acquisition II ( THBRU ) raised $300 million to go looking for a fintech business following Thunder Bridge I's acquisition of REPAY (RPAY). Silver Spike Acquisition (SSPKU) raised $250 million to acquire a cannabis business, the year's third SPAC to target the fast-growing space.
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| 4 IPOs During the Week of August 5th, 2019 |
|Market Cap |
|Price vs. |
|First Day |
| AMTD International ( HKIB ) ||$174M ||$1,933M ||1% ||+20% ||+16% |
| Hong Kong-based asset manager and investment bank. |
| Thunder Bridge Acq. II ( THBRU ) ||$300M ||$375M ||0% ||+1% ||+1% |
| Second blank check company led by Gary Simanson targeting the fintech industry. |
| Silver Spike Acquisition (SSPKU) ||$250M ||$313M ||0% ||+0% ||+0% |
| Blank check company targeting the cannabis industry. |
| InMode ( INMD ) ||$70M ||$570M ||-7% ||-3% ||-1% |
| Israeli maker of minimally-invasive medical aesthetic systems. |
Just one company submitted an initial filing, fitness apparel maker Hylete
IPO Market Snapshot
| 1 Filing During the Week of August 5th, 2019 |
|Sector ||Lead |
| Hylete (HYLT) ||$15M ||Consumer Discretionary ||Maxim |
| Designs and sells fitness apparel online. |
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/8/19, the Renaissance IPO Index was up 38.9% year-to-date, while the S&P 500 had a gain of 18.6%. Renaissance Capital's IPO ETF ( IPO
) tracks the index, and top ETF holdings include Spotify (SPOT) and Elanco (ELAN). The Renaissance International IPO Index was up 9.7% year-to-date, while the ACWX was up 9.1%. Renaissance Capital's International IPO ETF ( IPOS
) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.
The article US IPO Weekly Recap: Chinese investment bank taps US IPO market
originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com. Investment Disclosure:
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO)
, Renaissance International ETF (symbol: IPOS)
, or separately managed institutional accounts may have investments in securities of companies mentioned.