IPO Bulletin: US floats deliver strong gains, Way 2 VAT makes an impression on debut
Rene Anthony
The US IPO market reopened after the summer break, and the number of strong performers were aplenty. Meanwhile, several ASX floats got off the ground this week, but a number of other companies schedule to list this week were handed revised dates for their inaugural trading session, including the likes of Dalaroo Metals (ASX: DAL), Pearl Gull Iron (ASX: PLG), Star Minerals (ASX: SMS) and Koonenberry Gold (ASX: KNB).
New ASX listings
Legacy Minerals (ASX: LGM) was the first cab off the ranks this week, with the gold and copper explorer listing on Monday after raising $7 million. The company is already undertaking drilling at its most-advanced exploration project, Harden, which is one of five it owns across the Lachlan Fold Belt in NSW. Shares in LGM opened nearly 25% above IPO price, before quickly sinking below the float price. The stock has since managed to retake that key threshold.Meanwhile, industrial minerals explorer Heavy Minerals (ASX: HVY) shook off a minor speed bump in its first few days of trading. The share price mostly traded 10-15% lower than the IPO price, but that changed on Friday as investors were buoyed by news around the company 12km 300-hole Air-Core drilling program at Port Gregory Garnet in WA, which is set to start next week.This week biggest listing with $12 million in fresh funds to its name, South Australian copper explorer Copper Seach (ASX: CUS) had a positive first day of trading on the ASX. The company is advancing its exploration efforts in the Gawler Craton region where it holds over 6,5000 square kilometres of land.Making up the last of this week debutants were safety and people services provider SSH Group (ASX: SSH), which secured $6.25 million via IPO, and AI-driven VAT and GST reclaim service Way 2 VAT (ASX: W2V), which completed a $7 million offer. The two stocks were arguably this week best-performing ASX floats, with SSH Group gaining around 30%, and Way 2 VAT at one stage soaring more than 90% on the back of heavy trading volume, with all pre-IPO and seed shares being in escrow. As profit takers took their gains off the table before the end of the week, W2V's first day of trade saw it rise just shy of 60%.
New US listings
Sports betting software and data provider Sportradar Group (NASDAQ: SRAD) kicked off proceedings in the US this week, quickly wrapping up its US$500 million IPO at a price of US$27 per share. The stock initially fell below that price, but has since worked hard to claw back some of that ground.There were blowout results from DiCE Molecules (NASDAQ: DICE) and PROCEPT BioRobotics (NASDAQ: PRCT), which soared 117% and 68% respectively on their first day of trading before profit takers flocked in the following day.
Dice raised over US$200 million from shares priced at US$17 each to help provide funding for its oral small molecule therapies for immunologic diseases.
On the other hand, Procept issued its shares at US$25 a piece, but the company, which makes surgical robotic systems for minimally-invasive urologic procedures, had no issue attracting demand amid a strong performance from surgical robotics peer Intuitive Surgical (NASDAQ: ISRG), which has been on a tear over recent months.Swiss athletic apparel and shoe brand On Holding (NYSE: ONON) also had a blistering debut, up nearly 46% on its first day, even after lifting the price range on its IPO. Shares in ONON gained another 7% the following day, proving the stock was anything but a one-hit wonder.If those gains were handy, then the performance of healthcare intelligence platform Definitive Healthcare (NASDAQ: DH) would have delighted shareholders. Shares in the healthcare float surged 60.3% on debut after raising US$420 million, then followed that up with another 9% increase. Given the boom in telehealth since the start of the pandemic, health tech stocks have been a hot commodity, with data and analytics proving invaluable to clients spanning biopharmaceutical and medical device companies, healthcare providers, and health information providers.Continuing the positive theme, software consulting firm Thoughtworks (NASDAQ: TWKS) and preclinical biotech Tyra Biosciences (NASDAQ: TYRA) both popped on debut, leaping 40% and 62.5% respectively.
Thoughtworks had already upgraded its IPO price range before debut, but with its global operations and crossover with a booming software sector, investors lapped up the stock. Similarly, Tyra was buoyed by notable demand heading into its listing, with the oncology-focused stock upsizing its offer as investors in a sector full of positive sentiment backed the company plans to push three programs targeting drug-resistant cancers into clinic studies.
Finally, digital-identity software provider ForgeRock (NYSE: FORG) leapt 46% on its debut, while gains for drive-thru coffee shop franchise Dutch Bros (NYSE: BROS) and on-demand mobile fuel delivery service EzFill (NASDAQ: EZFL) were also impressive, picking up as the week went on.
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