The U.S. initial-public-offering market is continuing to emerge from a long dry spell, with another busy week on tap with at least $1 billion worth of deals expected, led by healthcare-services provider BrightSpring Health Services Inc.
That company, which offers home- and community-based services, is planning to raise up to $959.4 million by offering 53.3 million shares priced at $15 to $18 each. That would give the Louisville, Ky.-based company, backed by KKR & Co.
KKR,
a valuation of $3.1 billion.
BrightSpring is planning to list on the Nasdaq under the ticker BTSG
BTSG,
Goldman Sachs is the lead in a team of 15 banks working on the deal.
The company focuses on patients with complex health needs, such as senior and specialty patients, via a network of 10,000 clinical providers and pharmacists. Revenue rose 15.3% in 2022 to $7.7 billion, but the company swung to a loss of $53.9 million after chalking up net income of $49.8 million in 2021.
Immunotherapy company CG Oncology
CGON,
is also expected to hit the market this week with a deal that could raise up to $212 million at a valuation of about $970 million. CG Oncology is a late-stage clinical biopharmaceutical company that is developing bladder-cancer drugs, including its lead product candidate, cretostimogene.
In a welcome sign for the still-thawing IPO market, another company planning a sizable deal, Finnish sports-brand owner Amer Sports
AS,
set terms for its deal early Monday, freeing it up to launch its roadshow.
The company is planning to offer 100 million shares priced at $16 to $18 each, to raise up to $1.8 billion. With 484.5 million shares expected to be outstanding once the deal closes, the company would have a valuation of $8.7 billion.
Amer Sports, which owns sports brands Arc’teryx, Salomon, Wilson, Peak Performance and Atomic, had revenue of $3.55 billion in 2022, up from $2.4 billion in 2020. Its net loss grew to $252.7 million from $237.2 million during the same time frame. The company was acquired by a Chinese consortium for about $5 billion in 2019.
Read now: Amer Sports files initial public offering with 21 underwriters and $3.5 billion in 2022 revenue
Also setting terms Monday was ArriVent Biopharma Inc.
AVBP,
a clinical-stage biopharmaceutical company that specializes in cancer treatments. That company is planning to offer 8.3 million shares priced at $17 to $19 each, to raise up to $157.7 million at a valuation of about $581 million.
More high-flying companies may be ready to dive into the market soon. Social-media platform Reddit is reportedly eyeing an IPO in March, according to Reuters. The San Francisco company is valued at about $10 billion, according to the report, which cited people familiar with the deal.
Also read: Reddit, Shein and Stripe may lead a revived IPO market in 2024
Last week, London-listed Kaspi.kz, a Kazakh financial-technology company, raised $1 billion in a U.S. IPO that was the second by a company from Kazakhstan, after financial-services company Freedom Holding listed on the Nasdaq in 2019.
With a valuation of $17.4 billion, Kaspi.kz was the third-largest company to go public in over two years, according to Bill Smith, co-founder and chief executive of Renaissance Capital, a provider of IPO exchange-traded funds and institutional research.
The company is parent to the Kaspi.kz Super App, which offers a range of financial services to customers via a single mobile app.
Kaspi.kz is profitable and already lists its stock on the London Stock Exchange, where it has a market capitalization of about $19 billion.
Kaspi.kz had net income of $1.3 billion in the first nine months of 2023, up from about $876 million in the year-earlier period, according to its prospectus. Revenue rose to $2.8 billion from about $1.9 billion in the year-earlier period and was more than the $2.7 billion generated for all of 2022.
The stock, which listed at $92 last week, was last quoted at $91.74.
The Renaissance IPO ETF
IPO
has gained 27.6% in the last 12 months, while the S&P 500
SPX
has gained 21.8%.
Read the full article here
