The IPO Market Winners and Losers Last Week – May 5, 2024

Cruise company?Viking Holdings (NYSE: VIK)?put wind in the sails of the IPO market with the biggest US offering of the year.

Viking had conservatively set a range of $21 to $25, wide enough to sail a cruise ship through. It upped the share offering by nearly 50% and priced above the midpoint at $24 to raise $1.5 billion. The stock rose 9% on day one and finished Friday 21% above offer, trading at a clear premium to cruise peers.

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The Fed surprised no one and held rates at a two-decade high. The inflation shock in mid-April caused IPO filings to slow down, but two weeks of stability and positive trading should restart filings ahead of an active June/July.

Three IPOs are scheduled for next week.

• ZEEKR (NYSE: ZK)?sells premium EVs in China, planning to raise $341 million at a $4.8 billion value. It originally filed back in November. The deal launched late Friday with a 1-week roadshow, which makes sense since the deal is 100% covered, mostly by the parent carving it out.
• Proficient Auto Logistics (Nasdaq: PAL)?is a roll-up of car shipping companies, raising $215 million. I’m sure you’ve seen?these trucks?on the road. IPO proceeds will finance the roll-up transactions, which is why the float is almost 60% of total shares. Achieving synergies is always easier said than done, but there’s clear upside if they pull it off.
• Silvaco Group (Nasdaq: SVCO)?sells semiconductor design software, and aims to raise over $100 million. Founded 40 years ago and controlled by the founder, Silvaco is the type of rare small-cap tech deal that has mostly disappeared from the IPO market.

The Renaissance IPO Index rose +0.7% this week, edging out the S&P 500's +0.5%. Industrial battery energy storage firm?Fluence Energy?was the winner, jumping +24.0%. Help-desk software provider?Freshworks?sold off -23.9% after it lowered 2024 guidance and announced a new CEO.

Take care,

Bill Smith

CEO and Founder?

Renaissance Capital

Visit us at www.RenaissanceCapital.com