Most Promising Recent IPOs in 2024

The performance of a company's initial public offering (IPO) often serves as a crucial indicator of its future potential. Historically, some of the most significant gains in the stock market have been attributed to companies shortly after their IPOs. These initial phases, often spanning a few months or years, witness substantial price movements as investors gauge the company's performance, growth prospects, and market reception. Tracking recent promising IPOs is smart for investors looking to capitalize on emerging opportunities and potentially secure significant returns.

As of February 14th, there have been 26 IPOs on the US stock market in 2024.

CG Oncology, Inc. (CGON)

CG Oncology, Inc. debuted on the NASDAQ on January 25th, offering 20 million shares to investors at a price of $19 per share. CGON is currently sitting at $41 per share with a market cap of $2.61B.

CG Oncology, Inc. is a late-stage clinical biopharmaceutical company focused on the development and commercialization of a potential backbone bladder-sparing therapeutic solution for patients afflicted with bladder cancer.

Their product candidate, cretostimogene, is undergoing clinical development. Its primary focus is on addressing the urgent medical needs of patients suffering from high-risk Non-Muscle Invasive Bladder Cancer (NMIBC).

Cretostimogene represents a potential breakthrough for patients who have not responded to the current standard-of-care treatment, Bacillus Calmette Guerin (BCG) therapy. This therapy is crucial as it offers an alternative to radical cystectomy, a procedure involving the complete removal of the bladder, which many patients are reluctant to undergo.

CG Oncology is actively advancing the evaluation of cretostimogene, their potential breakthrough treatment for high-risk Non-Muscle Invasive Bladder Cancer (NMIBC) patients who are unresponsive to BCG therapy. Their ongoing Phase 3 clinical trial, BOND-003, targets this patient population, with enrollment completed and interim data reported in November 2023. Anticipated topline data by the end of 2024 could pave the way for a Biologics License Application (BLA) submission to the FDA.

Furthermore, CG Oncology is investigating cretostimogene in combination with pembrolizumab in the Phase 2 trial CORE-001 and plans to assess its efficacy in various other bladder cancer indications, including in patients not categorized as BCG-unresponsive. The company's commitment to addressing the current shortage of BCG and prioritizing patient treatment underscores its dedication to advancing bladder cancer therapy and improving patient outcomes.

Smith Douglas Homes Corp. (SDHC)

Smith Douglas Homes Corp. (SDHC) debuted on the NYSE on January 11th, offering 7.69 million shares to investors at the price range of $18 - $21 per share. SDHC is currently trading at $27.60 per share with a market cap of $212.5M.

Smith Douglas Homes Corp. is a rapidly expanding private homebuilder, positioned as one of the nation's fastest-growing companies in terms of the number of closings. The company operates primarily in the Southeastern United States, focusing on designing, constructing, and selling single-family homes in high-growth markets. Their business model emphasizes efficiency, with a particular focus on production, minimal land ownership, and conservative leverage.

Targeting both entry-level and empty-nest homebuyers, Smith Douglas Homes Corp. offers a personalized home-buying experience at affordable price points. Their strategy aims to capitalize on the strong demand for housing in desirable Southeastern markets while maintaining competitive gross margins, efficient construction cycle times, and favourable returns.

Key to their approach is a "land-light" strategy, whereby the company predominantly acquires finished lots through lot-option contracts from third-party developers or land bankers. This strategy minimizes upfront capital requirements and ensures timely lot delivery, aligning closely with the pace of home orders and starts. By reducing reliance on land ownership, Smith Douglas Homes Corp. mitigates operating and financial risks compared to other homebuilders with higher land holdings on their balance sheets.

As of June 30, 2023, and December 31, 2022, respectively, the company controlled 95% and 96% of its unstarted lots through finished lot option contracts. This capital-efficient approach has translated into robust risk-adjusted returns, with adjusted return on equity and adjusted return on inventory reaching impressive levels of 71% and 62%, respectively, for the twelve months ended June 30, 2023, and 81% and 75%, respectively, for the year ended December 31, 2022.

With a clear focus on capital efficiency and strategic expansion, Smith Douglas Homes Corp. aims to solidify its position as a dominant player in the Southeastern and Southern United States' homebuilding market. The company intends to grow its operations within existing markets while also exploring opportunities to enter new markets where it can effectively execute its business strategy and maximize profitability and returns.

Amer Sports, Inc. (AS)

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Amer Sports, Inc. (AS) debuted on the NYSE on February 1st, offering 105 million shares to investors for $13 per share. AS is currently trading at $15 per share with a market cap of $7.27B.

Amer Sports is a Helsinki-based sports apparel and outdoor equipment company owned by an investor group led by China’s ANTA Sports, which acquired the company in 2019. Formerly listed on the NASDAQ Helsinki, Amer Sports operates globally and comprises a portfolio of well-known sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Atomic, and Peak Performance.

The company is recognized for its detailed craftsmanship, authenticity, and premium market positioning across various categories. Amer Sports emphasizes innovation, technical performance, and design in its products, catering to both athletes and everyday consumers.

Through collaborations with industry influencers, elite athletes, and communities, Amer Sports develops products aimed at enhancing sports performance and everyday comfort. The company's offerings include apparel, footwear, equipment, protective gear, and accessories.

Amer Sports expresses confidence in its future growth opportunities, particularly in its reportable segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The company has demonstrated strong revenue growth, reflecting its established presence in the market.