The IPO Market’s Winners and Losers Last Week – June 19, 2022

History doesn’t repeat itself, but it often rhymes.

? Large and loosely-regulated crypto sellers are facing a crisis, and the question for thousands of individual investors is whether it’s about liquidity or solvency. Crypto may not have systemic risk, but the story has a ring of 2008 to it.

? After a record year for IPOs, highly-valued tech startups are laying off thousands of employees just months after running flashy Super Bowl ads. Sounds like 2000. These companies may be valued based on $100+ million revenue streams instead of eyeballs, but their scale in terms of funding and headcount is an order of magnitude larger than 1999-2000, and even companies with 9-digit sales figures go bust.

And yet, every bear market feels uniquely raw to investors, and the market's constant see-saw can get exhausting. However, we have been here before, and long-term equity investors tend to see opportunities at this stage of the cycle.

The Renaissance IPO Index fell -4.3% this week, compared to -5.8% for the S&P 500, as the Fed continued to fight inflation with the largest rate hike since 1994. It’s worth noting that this is the third week in a row the IPO market edged out the S&P 500. Chinese companies keep regaining lost ground with auto maker Li Auto taking the IPO Index's top spot, while health services provider Sotera Health finished last.

Copper and gold miner Ivanhoe Electric (NYSE: IE) announced plans to list next Friday, the first $100+ million IPO in over a month. The deal’s tight range ($11.75-$12.50) and short roadshow suggest management is confident it can find enough demand. We don’t believe the offering will have major implications for the rest of the IPO pipeline, but any sizable deal is noteworthy in this market.

Three small IPOs managed to price this week (LYT, CNXA, HSCS), only one of which was big enough to be included in our 2022 IPO stats. Four more micro-caps joined the pipeline. These deals can price with little warning - IPO Pro users can favorite them for an email alert.

PS: Keep an eye out for our 2Q IPO Market Review, which will hit late next week.