The backdrop surrounding IPOs has significantly adjusted throughout the latter quarters of 2023. Valuations are climbing, volatility is diminishing, and there are prospects for managed inflation and interest rate adjustments. We actively monitor factors that could influence whether we encounter a bullish or bearish IPO market in the future. Recently, there have been notable high-profile IPOs, such as Cargo Therapeutics, which completed its $300 million IPO on NASDAQ in Q4 of 2023. Moreover, there has been a considerable uptick in offerings exceeding the $100+ million range in 2023.
2022 had 30 IPOs, slightly declining to 18 in 2023, resulting in 48 IPOs over 2 years. Despite the drop, there was a significant surge in total funding. In 2022, companies secured $5.3 billion; in 2023 this figure increased to $7.7 billion, concluding at $13.0 billion.
IPO Activity In Biopharma Therapeutics And Platforms
Our 2022 figures indicated 22 IPOs, declining to 16 in 2023, resulting in 38 IPOs within biopharma therapeutics & platforms over 2 years. Despite the reduction, there was a notable increase in funds raised; 2022 IPOs raised $3.5 billion, but it tapered off in 2023 to $2.8 billion, totaling $6.3 billion.
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IPO Activity Devices Â
Our data had no IPOs in 2023 for medtech devices, digital health therapeutics, and wearables. In contrast, 2022 witnessed 4 raising $1.7 billion. The combined data indicates a minimal IPO presence of $1.7 billion.
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IPO Activity Manufacturing
In 2022, we saw 4 IPOs in contract manufacturing, services, software, and healthcare AI/ML, collectively raising $0.1 billion. However, there was a slight increase in 2023, with one additional offering bringing it to 5. The total funds raised escalated from $0.1 billion in 2022 to $0.6 billion.
In 2022, 8 SPACs collectively raised $0.9 billion. However, there was a reduction in 2023, with 5 SPAC IPOs raising $0.4 billion; those 13 SPACs cumulatively raised $1.3 billion.
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Key SPAC
enGene’s Reverse Merger with FEAC – November 2023
enGene completed a reverse merger with Forbion European Acquisition Corp. (FEAC) through a SPAC transaction, forming enGene Holdings, now listed on NASDAQ. The deal involved $111 million from FEAC’s trust account and an extra $135 million, with $20 million from PIPE financing. Remarkably, $115 million came from private investments, securing 5,550,408 of FEAC’s common stock at $10.25 per share.
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Deals Snapshot – 2023
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Kenvue Inc.’s IPO – May 2023
Kenvue Inc., a leading consumer health company, successfully closed its IPO, issuing 198,734,444 shares at $22.00 per share, valuing the offering at around $41 billion. Johnson & Johnson now owns approximately 89.6% of Kenvue’s common stock and plans to divest its majority stake in 2023. The IPO proceeds partially compensate J&J for the consumer health businesses transferred to Kenvue.
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ACELRYIN, INC.’s Expanded IPO – May 2023
ACELYRIN, INC., a late-stage clinical biopharmaceutical company, completed its expanded IPO, offering 34.5 million shares of common stock at $18.00 per share. Underwriters also acquired an additional 4.5 million shares. ACELYRIN received $621.0 million in gross proceeds, excluding expenses, to advance transformative immunology medicines.
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Apogee Therapeutics’ IPO and Clinical Study – July 2023
Apogee Therapeutics, a clinical-stage biotech, closed its IPO, offering 20,297,500 shares at $17.00 each, with an option for an additional 2,647,500 shares. The offering raised about $345 million. Simultaneously, Apogee initiated the first human study of its lead asset, APG777, for moderate-to-severe atopic dermatitis.
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CARGO Therapeutics’ IPO – November 2023
CARGO Therapeutics, focusing on cancer cell therapies, priced its IPO at $15.00 per share, offering 18,750,000 shares with potential gross proceeds of around $281.3 million. Underwriters can purchase up to 2,812,500 additional shares at the same price, minus discounts and commissions.
