To The Moon

There was just one small IPO and one direct listing this past week. Although there were no new IPO filings, a few large deals in the pipeline updated their prospectuses, including Corebridge Financial (CRBG), Turo (TURO), Fogo Hospitality (FOGO), and Claire’s (CLRS).

After delaying the previous week, US cannabis producer Bright Green (BGXX) completed the year’s first direct listing, opening nearly 100% above its reference price to begin trading at $15.99 for an implied $2.5 billion market cap. The company aims to operate in the federally-authorized cannabis space, though it has limited operating history and has yet to harvest its first crop or generate revenues. From its opening price, Bright Green finished down 30%.

Thestream of small IPOs continuedwith Canada-based Visionary Education Group (VEDU), which raised $17 million at a $157 million market cap. The company offers secondary and post-secondary education services, as well as study visa and immigration services. After popping 525% on its first day, Visionary Education plummeted in the aftermarket to finish the week down 45%.

While not included below, SOBR Safe (SOBR) raised $10 million at a $44 million market cap through a unit offering, and OKYO Pharma (OKYO) raised $3 million at a $87 million market cap.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/19/2022, the Renaissance IPO Index was down 47.5% year-to-date, while the S&P 500 was down 17.7%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 30.6% year-to-date, while the ACWX was down 14.6%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.