Opening Day: Reddit jumps nearly 50% in market debut

Shares of Reddit jumped almost 50% over their initial public offering price, with the social media company raising about $748M as the IPO market seems to be finally reopening. Reddit’s IPO is the fourth largest this year. Amer Sports (AS) is the biggest to date with $1.57B.

LATEST IPOS AND DIRECT LISTINGS:

Reddit (RDDT) opened on March 21st at $47. The company had priced its initial public offering of an aggregate 22M shares of its Class A common stock, 15.28M of which are being sold by Reddit and 6.72M of which are being sold by certain selling stockholders, at a public offering price of $34 per share. Reddit will not receive any proceeds from any sale of shares by the selling stockholders.

LOBO EV (LOBO) opened on March 21st at $5.26. The company had priced its initial public offering of 1.38M ordinary shares at a public offering price of $4.00 per share. LOBO is an electric vehicle manufacturer and seller that designs, develops, manufactures and sells e-bicycles, e-mopeds, e-tricycles, and electric off-highway four-wheeled shuttles.reddit

Astera Labs (ALAB) opened on March 20th at $52.56. The company had priced 19.8M shares at $36.00 per share, above the $32.00-$34.00 range. Astera Labs describes itself as “a global leader in purpose-built connectivity solutions that unlock the full potential of AI and cloud infrastructure” whose Intelligent Connectivity Platform integrates PCIe, CXL, and Ethernet semiconductor-based solutions based on a software-defined architecture.

Intelligent Group (INTJ) opened on March 20th at $5. The company had priced 1.875M shares at $4.00. The deal size was reduced to 1.875M shares from 2.0M and priced at the low end of the $4.00-$5.00 target range. Intelligent Group is a professional services provider in Hong Kong that engages in the business of providing financial public relations services.

Auna (AUNA), a Latin American healthcare company with operations in Mexico, Peru and Colombia, priced its initial public offering of 30M class A ordinary shares at a price of $12.00 per class A share and opened on March 22 at $9.51 per share. Auna noted that the company intends to use the net proceeds from the offering to repurchase 21.2% interest in Auna Salud S.A.C., as well as for other general corporate purposes. For the full year 2023, Auna reported revenues of $1.05B and Adjusted EBITDA of $223M, representing increases of 58% and 90%, respectively. Adjusted EBITDA margin for 2023 expanded to 21.3% from 17.7% in the prior year, the company noted.

SPAC IPOS THIS WEEK:

• BlacK Hawk Acquisition (BKHA) opened on March 21st at $10.15. The blank check  company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region.

END OF THE WEEK PERFORMANCE:

• Reddit – $46
• LOBO EV – $3.50
• Astera Labs – $70
• Intelligent Group – $2.13
• Auna -$9.60

RECENT IPOS TO WATCH: SolarMax (SMXT) is among stocks that could see new coverage roll out this upcoming week as the quiet periods for banks that underwrote the companies’ IPOs expire.

UPCOMING IPOS: Upcoming IPO and direct listings expected include Boundless Bio (BOLD), Origin Life Sciences (OLSI), Chime Financial, and Rubrik.

Click here to see upcoming IPO calendar on TipRanks.

Boundless Bio filed with the SEC for an initial public offering of shares of common stock and noted that the company has applied to list its common stock on the Nasdaq Global Market under the symbol “BOLD.” The prospectus states that, “We are a clinical-stage oncology company dedicated to unlocking a new paradigm in cancer therapeutics that addresses the significant unmet need in patients with oncogene amplified tumors by targeting extrachromosomal DNA, or ecDNA, a root cause of oncogene amplification observed in more than 14% of cancer patients… Our lead ecDTx, BBI-355, is a novel, oral, selective inhibitor of checkpoint kinase 1, CHK1, which manages ecDNA replication and transcription in cancer cells. BBI-355 demonstrated CHK1 inhibition and tumor regressions in ecDNA-enabled preclinical cancer models and is currently being studied in a first-in-human, Phase 1/2 clinical trial in patients with oncogene amplified cancers.”

Rubrik, a cloud and data security startup backed by Microsoft (MSFT), is on track for an initial public offering in 2023 and its investor roadshow could begin as soon as next month, Bloomberg’s Amy Or and Katie Roof report, citing people familiar with the matter. The IPO could bring in $500M-$700M, the authors say, noting that the timing and amount to be raised is still subject to change.

Origin Life Sciences said it is offering 1.875M shares its our common stock at an assumed public offering price of $4.00 per share in an initial public offering. The company has applied to list its common stock for trading on NYSE American under the symbol “OLSI.” Origin Life Sciences is a clinical-stage biotechnology company that has been developing a high-energy plasma device that generates nitric oxide in the form of a plasma/NO stream and delivers it to targeted locations of the body. “The stream can potentially be used for various therapeutic purposes, including as an anti-infective, anti-inflammatory and tissue-regenerative therapy for chronic wounds and skin and soft tissue infections,” the company said in a regulatory filing.

Chime Financial, a financial technology, or “fintech,” company that has been a closely watched IPO candidate for a few years, is planning to list in the U.S. next year, a person familiar with the matter told Bloomberg‘s Paige Smith. Chime has yet to engage banks on the expected initial public offering, the report added.

Opening Day” is The Fly’s recurring series of stories on the latest initial public offerings, their performance, and upcoming IPOs.