Reddit Jumps Nearly 50% In Market Debut

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


Latest IPOs and Direct Listings

Reddit (RDDT) opened on March 21 at $47. The company had priced its initial public offering of an aggregate 22 million shares of its Class A common stock, 15.28 million of which are being sold by Reddit and 6.72 million 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 21 at $5.26. The company had priced its initial public offering of 1.38 million 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.

Astera Labs (ALAB) opened on March 20 at $52.56. The company had priced 19.8 million 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 20 at $5. The company had priced 1.875 million shares at $4.00. The deal size was reduced to 1.875 million shares from 2.0 million 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 30 million 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 $1.05 billion and Adjusted EBITDA of $223 million, 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 21 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 ended the week at $46.
  • LOBO EV closed trading on Friday at $3.50.
  • Astera Labs closed Friday at $70.
  • Intelligent Group ended the week at $2.13.
  • Auna ended the week at $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 the likes of include Boundless Bio, Origin Life Sciences, Chime Financial, and Rubrik.

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 the following: 

"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, Bloomberg's Amy Or and Katie Roof reported last year, citing people familiar with the matter. The IPO could bring in $500-$700 million, the authors stated noting that the timing and amount to be raised could be subject to change.

Origin Life Sciences said it is offering 1.875 million shares of its common stock at an assumed public offering price of $4.00 per share. 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 recently told Bloomberg's Paige Smith. Chime has yet to engage banks on the expected initial public offering, the report added.


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