US IPO Week Ahead: IPO market serves up tea and drones after a volatile week
The upcoming IPO week features two significant deals: Chagee Holdings aims to raise $396 million at a $5.2 billion market cap, focusing on premium tea drinks, while AIRO Group Holdings seeks $75 million at a $381 million market cap, specializing in aerospace and defense. The IPO market has seen a decline, with the Renaissance IPO Index down 19.4% year-to-date. Street research is anticipated for two companies, and four lock-up periods will expire soon.
Two sizable deals are set to lead the IPO calendar in the coming week.
China-based Chagee Holdings (CHA) plans to raise $396 million at a $5.2 billion market cap. Chagee is a leading premium tea drinks brand, serving freshly-made tea, tea lattes, tea frappes and "teappuccinos." As of December 31, 2024, its network consisted of 6,440 franchised and company-owned teahouses, mostly in China (98%). The company delivered strong growth in 2024, but its rapid expansion is expected to slow significantly in 2025.
Aerospace and defense company AIRO Group Holdings (AIRO) plans to raise $75 million at a $381 million market cap. AIRO’s business is organized into four operating segments: Drones, Avionics, Training, and Electric Air Mobility. The company saw strong growth and margin improvement in 2024, though it relies heavily on government customers for revenue.
Street research is expected for two companies in the week ahead, and four lock-up periods will be expiring. For access to Street research and lock-up expiration dates, sign up for a free trial of IPO Pro.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/10/2025, the Renaissance IPO Index was down 19.4% year-to-date, while the S&P 500 was down 10.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Arm Holdings (ARM). The Renaissance International IPO Index was down 3.2% year-to-date, while the ACWX was up 0.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Galderma and Porsche.
