By Ciara Linnane
At least two initial public offerings were withdrawn during Tuesday’s brutal stock market rout, casting a shadow over the year’s biggest deal, a $1.68 billon offering from AIG’s life insurer Corebridge Financial Inc.
Israel tech-focused special-purpose acquisition corporation Keter1 Acquisition withdrew its plans for an $250 million IPO on Tuesday, according to Renaissance Capital, a provider of pre-IPO institutional research and IPO-focused ETFs.
And cancer-focused biotech Elicio Therapeutics pulled its $40 million offering, according to Renaissance.
The decisions came as the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +2.18% shed 1,300 points Tuesday to mark its worst one-day performance since June 11 of 2020, following an unexpectedly hot consumer-price inflation reading for August.
The S&P 500 shed 4.3%, while the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +4.41% fell 5.2% in a broad-based selloff. All 11 S&P 500 sectors finished in the red after the August consumer-price index, or CPI, rose 0.1% in August . Though the year-over-year rate slowed to 8.3% from 8.5% in July, economists had been looking for a monthly fall of 0.1% that would bring the year-over-year rate down to 8%.
Corebridge priced its deal late Wednesday at $21 a share, the low end of a range that topped at $24 a share. Corebridge offered 80 million shares to raise the most of any deal in this year’s frozen market. It had hoped to raise as much as $1.8 billion.
To be sure, Corebridge had some points in its favor, not least being that it’s profitable and has delivered solid growth. Corebridge had net income of $6.4 billion in the first half of the year on revenue of $16 billion , according to its filing documents. That was up from net income of $2.8 billion in the year-earlier period, on revenue of $11.02 billion.
The company is planning to pay quarterly dividends, offering a 4.1% annualized yield at the midpoint of its range, according to Renaissance co-Founder and CEO Bill Smith. It had $358 billion in client assets as of June 30.
The deal /zigman2/quotes/235495635/composite CRBG +2.44% had a strong roster of underwriters at 43 banks, with JPMorgan acting as lead. It will start trading on the New York Stock Exchange later Thursday under the ticker “CRBG.”
Linkbancorp Inc. /zigman2/quotes/216514805/composite LNKB +6.83% , which operates Pennsylvania-based The Gratz Bank, priced its public offering on Tuesday at $7.50 a share, below its price range of $8.00 to $9.50. That offering was an uplisting to the Nasdaq from the OTC market. The stock was up 2.4% in recent trades.
Also on the docket Wednesday was biotech Third Harmonic Bio. THRD The company specializes in treatments for allergic and inflammatory diseases. It priced its IPO at $17 a share, the midpoint of a $16 to $18 price range. The company upsized the deal to 10.9 million shares from an earlier plan to offer just 9 million, raising $185.3 million. The stock will start trading on Nasdaq later Thursday, under the ticker “THRD.”