Saudi Aramco’s (ARMCO) IPO is officially the world’s largest IPO ever. The company priced its nearly $26 billion deal at the high end, surpassing Alibaba’s (NYSE:BABA) 2014 US IPO. It will also surpass Apple (NASDAQ:AAPL) as the world’s largest public company when it begins trading next week, with an IPO market cap of $1.7 trillion.

In the US markets, a nano-cap auto e-tailer was the only company to go public. A Chinese issuer and a SPAC submitted initial filings.

Pricing at the low end, LMP Automotive Holdings (NASDAQ:LMPX) raised $12 million at a $42 million market cap. A small operation with high growth and large losses, the company finished up 15%.

1 IPO During the Week of December 2nd, 2019

Issuer
Business

Deal
Size

Market Cap
at IPO

Price vs.
Midpoint

First Day
Return

Return
at 12/06

LMP Automotive

$12M

$42M

-9%

+7%

+15%

Operates an e-commerce site where users can buy, sell, and rent cars.

Molecular Data (MKD), a Chinese e-commerce platform for the chemical industry, filed for a $70 million US IPO. The Gores Group’s fourth SPAC, Gores Holdings IV (GHIVU), filed to raise $400 million; if it goes public in 2019, it would tie with Conyers Park II Acquisition (NASDAQ:CPAAU) for the second largest SPAC of the year.

2 Filings During the Week of December 2nd, 2019

Issuer
Business

Deal
Size

Sector

Lead
Underwriter

Molecular Data

$70M

Materials

AMTD Global

Offers e-commerce and software solutions to the Chinese chemicals industry.

Gores Holdings IV

$400M

SPAC

Deutsche Bank

Fourth blank check company formed by The Gores Group.

This past week, the SEC rejected the NYSE’s proposal to expand direct listings to companies issuing new stock.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 12/5/19, the Renaissance IPO Index was up 31.5% year-to-date, while the S&P 500 had a gain of 24.4%. Renaissance Capital’s IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Spotify (NYSE:SPOT) and Roku (NASDAQ:ROKU). The Renaissance International IPO Index was up 20.6% year-to-date, while the ACWX was up 16.3%. Renaissance Capital’s International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and SoftBank.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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2019-12-07