The past week was busier than many expected, three IPOs, two SPACs and a splattering of initial filings. All three IPO’s priced at the low end. Oncology biotech CARGO Therapeutics (CRGX) raised $281 million at a $611 million market cap and finished the week down 3%. Reinsurer Hamilton Group (HG) raised $225 million at a $1.7 billion market cap and finished the week flat. Cross-border logistics provider Globavend (GVH) raised $6 million at a $59 million market cap and finished the week down 53%. In the week ahead three IPOs scheduled. Hong Kong-based DDC Enterprise (DDC), holdover water infrastructure specialist Shimmick (SHIM) and digital platform Signing Day Sports (SGN).
Filings this week included Six IPOs, one direct listing, and one SPAC
- Chinese EV brand ZEEKR (ZK) led the pack, as it filed to raise an estimated $500 million
- Specialty insurer Fortegra (TFG), which filed to raise $100 million.
- Vaccine developer Sequoia Vaccines (SQVI) filed to raise $20 million.
- Japanese EV retailer HW Electro (HWEP) filed to raise $17 million.
- Malaysian consulting services provider QMIS TBS Capital Group (QMIX) filed to raise $17 million.
- Maritime tour operator Amphitrite Digital (AMDI) filed to raise $10 million at an $81 million market cap
- Cell therapy biotech FibroBiologics (FBLG) filed for a direct listing on the Nasdaq.
- SPAC Sichuan WB Technology (WMBT) filed to raise $70 million to target businesses in China and the APAC region.
US IPO Week Ahead
Issuers not included is because the company offered units with warrants attached and priced at a market cap less than $50 million, they will be excluded from Renaissance Capital’s 2023 IPO stats.
Shimmick (SHIM) plans to raise $50 million at a $333 million market cap. The company provides water and other critical infrastructure solutions across the US, primarily California, which accounted for over half of the company’s revenue in 2022. Shimmick has a project backlog worth $1+ billion, subject to cancellation and adjustments, and its focus on the public sector provides revenue stability.
- Underwriters: Roth Capital Craig-Hallum Capital Group
- Headquarters Irvine, CA, United States
- Founded 1990
- Employees 1500
- Website: Home – Shimmick // Leader in Water and Other Critical Infrastructure
DDC Enterprise (DDC)
Hong Kong-based DDC Enterprise (DDC) plans to raise $45 million at a $226 million market cap. Starting as an online recipe platform, DDC has since shifted to sales of prepared food products under its DayDayCook brand, as well as private label items. The company utilizes an omnichannel distribution strategy, which includes several large stores like 7/11 and Carrefour. Revenue growth was weighed down by China’s zero-COVID policy in 2022, though it reaccelerated in the 1H23.
- Underwriters: CMB International Capital The Benchmark Company Maxim Group LLC Freedom Capital Markets Guotai Junan Securities Eddid Securities and Futures Tiger Brokers
- Headquarters Hong Kong, China
- Founded 2012
- Employees 104
- Website: 首頁-DayDayCook日日煮
Signing Day Sports (SGN)
Holdover Signing Day Sports (SGN) plans to raise $8 million at a $58 million market cap. Signing Day Sports provides a digital platform to help student athletes get discovered and recruited by coaches and recruiters across the country. The company is very small and highly unprofitable.
- Underwriters: Boustead Securities
- Headquarters Scottsdale, AZ, United States
- Founded 2019
- Employees 11
- Website: Home – Signing Day Sports
Possible Pricing of IPOs from Past Weeks (incl: Delays)
Israeli 3D printing company XJet (XJET) plans to raise $6 million at a $77 million market cap. Small and highly unprofitable, XJet offers 3D printing technologies based on its patented
- Underwriters: WestPark Capital
- Headquarters Rehovot, Israel
- Founded 2005
- Employees 93
- Website: Homepage – XJET (xjet3d.com)
Vitro Biopharma (VTRO)
Vitro Biopharma (VTRO) plans to raise $10 million at a $37 million market cap. The biotech is developing novel stem cell-based therapies for autoimmune diseases and inflammatory disorders, and it plans to initiate Phase 1/2a trials in pediatric orphan disease Pitt Hopkins syndrome and long COVID in mid- to late-2023.
- Underwriters: ThinkEquity
- Headquarters Denver, CO, United States
- Founded 1986
- Employees 11
- Website: Vitro Biopharma | Home
Bermuda-based video game creator RoyaLand (RLND) may raise $7 million at an $87 million market cap. The company is currently in the development phase for its royalty-themed video game, TheRoyal.Land. It has completed the storyboard and is in the process of assembling its design and production team.
- Underwriters: Revere Securities, Dominari Securities
- Headquarters: Hamilton, Bermuda
- Founded 2022
- Employees 0
- Website: Homepage – The RoyaLand
Opti-Harvest (OPHV), which produces agricultural equipment and technology to optimize sunlight intake for plant growing plans to raise $8 million at a $70 million market cap in a unit offering. The IPO is long delayed and had planned to raise $8 million at a $111 million market cap. The company began commercializing its first products in 2021 and has yet to generate significant revenue.
- Underwriters: WestPark Capital
- Headquarters: Los Angeles, CA
- Founded: 2016
- Employees 9
- Website: Opti Harvest (opti-harvest.com)
Ultimax Digital (NFTU) Delayed
Ultimax Digital (NFTU), which operates a video game development and publishing studio and an NFT marketplace, plans to raise $8 million at an $80 million market cap. Ultimax Digital expanded into the NFT business in 2021, and had no revenue in 2021 or the 9mo22.
- Underwriters: WestPark Capital
- Headquarters: New York, NY
- Founded: 2018
- Employees 7
- Website: Discover, Collect and Trade Exclusive NFTs | Ultimax (ultimaxnfts.com)
SolarJuice (SJA) Delayed
SolarJuice (SJA) plans to raise $17 million at a $154 million market cap in the coming week. Being spun out of SPI Energy, the company provides solar energy equipment and services for residential and small commercial uses in the US and Australia. Another SPI Energy spin-off, Phoenix Motor (PEV), went public last June and currently trades 85% below its IPO price.
- Underwriters: Maxim Group LLC
- Headquarters: Sydney, Australia
- Founded: 2017
- Employees 274
- Website: Solar4America Made In US Premium Solar Modules
NYIAX (NYX) Delayed
Advertising contract marketplace NYIAX (NYX) plans to raise $9 million at a $71 million market cap. NYIAX’s platform utilizes the Nasdaq financial framework (“NFF”). This technology platform is protected through a joint patent held by both NYIAX and Nasdaq Technology AB (“Nasdaq”), a wholly owned subsidiary of Nasdaq, Inc. This patented technology creates current and future opportunities in media and advertising industries.
NYIAX is a marketplace where advertising inventory, campaigns and audiences can easily be listed and sold through utilization of highly transparent and efficient financial technology. The NYIAX platform provides Media Buyers and Media Sellers a marketplace where advertising or audience campaigns are listed, bought, and sold; thereafter, the contract flows directly into the Hyperledger Fabric Blockchain for contract management, reconciliation, and automation purposes.
- Underwriters: Boustead Securities WestPark Capital
- Headquarters: New York, NY
- Founded: 2012
- Employees 37
- Website: NYIAX – Advanced Contract Management
Jupiter Neurosciences (JUNS) – Delayed
Jupiter Neurosciences (JUNS) plans to raise $15 million at a $62 million market cap. Jupiter’s sole candidate, JOTROL, is being developed for various neuro and rare disease indications. JOTROL completed a Phase 1 safety and tolerability trial in March 2021 and is expected to commence Phase 2 trials in the 4Q22.
The Company has developed a unique resveratrol platform product primarily targeting treatment of neuro-inflammation. The product candidate, called JOTROL™, has many potential indications of use for rare diseases, which of we primarily are targeting Mucopolysaccharidoses Type 1, Friedreich’s Ataxia, and MELAS and with ALS in an earlier development stage. In the larger disease areas, we are primarily targeting Mild Cognitive Impairment/early Alzheimer’s disease with an early development program in TBI/concussions.
- Underwriters: Spartan Capital Securities
- Headquarters Jupiter, FL
- Founded 2016
- Employees 16
- Website: Jupiter Neurosciences, Inc
Alopexx (ALPX) – Delayed
Infectious disease biotech Alopexx (ALPX) plans to raise $15 million. A clinical stage biotechnology company developing novel immune therapeutics for the prevention, treatment and mitigation of bacterial, fungal, and parasitic infections that express the antigenic target poly N-acetyl glucosamine (PNAG). That target has been found on an expanding number of pathogens.
In a first-in-man trial vaccine candidate, AV0328, has been shown to be well tolerated with no serious adverse events observed. It was noted to induce protective antibodies against all PNAG-expressing pathogens tested. Similarly, fully human monoclonal antibody, F598, that also targets PNAG, has been shown to be well tolerated and no serious adverse events were noted in phase 1 and pilot phase 2 trials.
Seek to establish F598 as the standard of care for preventing and ameliorating gram-negative and gram-positive bacterial infections along with fungal infections by organisms that express PNAG in patients admitted to intensive care units (ICU).
- Underwriters: ThinkEquity
- Headquarters Cambridge, MA
- Founded 2006
- Employees 3
- Website: Alopexx (ALPX)
US IPO Weekly Recap: 2 SPAC, 3 IPO Week
The past week was busier than many expected, three IPOs, two SPACs and a splattering of initial filings. All three IPO’s priced at the low end. Oncology biotech CARGO Therapeutics (CRGX) raised $281 million at a $611 million market cap and finished the week down 3%. Reinsurer Hamilton Group (HG) raised $225 million at a $1.7 billion market cap and finished the week flat. Cross-border logistics provider Globavend (GVH) raised $6 million at a $59 million market cap and finished the week down 53%.
Two SPACs priced this week: Agriculture & Natural Solutions Acquisition (ANSCU) raised $300 million to target agricultural decarbonization, and AI Transportation Acquisition (AITRU) raised $60 million to target AI in transportation.
Hamilton Group (HG)
Hamilton Group (HG) priced below the range to raise $225 million at a $1.7 billion market cap. It had plans to raise $255 million at a $1.9 billion market cap. The company is Bermuda-headquartered and underwrites specialty insurance and reinsurance risks on a global basis through its wholly owned subsidiaries in Bermuda and Europe. Hamilton is set to be the year’s third and largest insurance IPO; reinsurer Fidelis (FIHL) has hovered around its offer price since its June IPO, while fast-growing property & casualty insurer Skyward (SKWD) has strongly outperformed since its early 2023 debut.
- Underwriters: Barclays Morgan Stanley Citi Wells Fargo Securities BMO Capital Markets Dowling & Partners JMP Securities Keefe Bruyette Woods Commerzbank
- Headquarters Hamilton, Bermuda
- Founded 2013
- Employees 500
- Website: Hamilton Insurance Group (hamiltongroup.com)
Hamilton Group finished the week flat.
Pineapple Financial (PAPL)
Mortgage broker Pineapple Financial (PAPL) priced at the low end to raise $4 million at a $29 million market cap. It had plans to raise $4 million at a $38 million market cap. The company currently operates exclusively in Canada.
- Underwriters: EF Hutton
- Headquarters North York, Canada
- Founded 2015
- Employees; n/a
- Website: Homeowners | Pineapple (gopineapple.com)
Pineapple Financial and finished down 54%
Lexeo Therapeutics (LXEO)
Biotech Lexeo Therapeutics (LXEO) priced at the low end to raise $100 million at a $282 million market cap. The company is focused on advancing in-licensed gene therapies for neurological and cardiovascular diseases. Its two lead candidates are currently being evaluated in Phase 1/2 trials, with interim data from both expected in mid to late 2024. Lexeo stumbled in its debut amid more challenging market conditions, finishing Friday down 9% from offer.
- Underwriters: J.P. Morgan Leerink Partners Stifel RBC Capital Markets Chardan Capital Markets
- Headquarters New York, NY, United States
- Founded 2017
- Employees 53
- Website: LEXEO Therapeutics (lexeotx.com)
Lexeo Therapeutics finished the week down -9%
Filings this week included eight issuers.
Filings this week included four issuers.
- Neo-Concept International (NCI) a Hong Kong-based apparel retailer and supply chain services provider.
- Ten-League International (TLIH) a Singapore-based provider of heavy equipment and engineering consultancy services.
- Baiya International (BIYA) a Chinese HR platform that connects companies and blue-collar staffing agencies.
- BloomZ (BLMZ) a Japanese audio production and voice actor management company.
Filings this week included six issuers.
- Personal care appliance wholesaler Raytech Holding (RAY) filed to raise $14 million at an $86 million market cap.
- Video compression products provider Reticulate Micro (RMIC) filed to raise $12 million at a $75 million market cap.
- Electric car sharing platform provider EV Mobility (EVMO) filed to raise $9 million at a $59 million market cap.
- Blank check Ag & Nat Solutions Acquisition (ANSCU) filed to raise $300 million to target decarbonization in agriculture,
- FG Merger II (FGIIU.RC) filed to raise $75 million to target financial services businesses,
- JVSPAC Acquisition (JVSAU) filed to raise $50 million to target lifestyle-focused tech businesses.
Filings this week included eight issuers.
Filings this week included three issuers. Three small issuers submitted initial filings this past week:
Filings this week included five issuers. Led by two that plan to raise $100+ million:
- Pharmacy services provider Guardian Pharmacy Services (GRDN)
- Air transport company PHI Group (ROTR).
Filings this week included eight issuers
- French chronic disease biotech Abivax (ABVX) filed to raise $100 million.
- Gene therapy biotech Lexeo Therapeutics (LXEO) filed to raise $100 million.
- Japanese property reseller Metros Development (MTRO.RC) filed to raise $17 million.
- Chinese logistics services provider OUI Global (TKE) filed to raise $13 million at a $72 million market cap.
- Cross-border logistics provider Armlogi Holding (BTOC) filed to raise $11 million at a $231 million market cap.
- Singapore-based steel fabricator Brilliance Group (KHIW) filed to raise $11 million at a $90 million market cap.
- Cancer biotech Kairos Pharma (KAPA) filed to raise an estimated $10 million.
- Skincare products maker Elevai Labs (ELAB) filed to raise $8 million at an $87 million market cap.
1 Filings During the Week of September 18, 2023
Filings this week included just one IPO joined the pipeline, US oil and gas producer Mach Natural Resources LP (MNR), which filed to raise $100 million. Two SPACs also filed.
3 Filings During the Week of September 11, 2023
European shoemaker Birkenstock Holding (BIRK) filed to raise an estimated $750 million. Birkenstock engineers and produces 100% of its products in the EU through vertically integrated manufacturing operations. The remaining additions were small issuers. Hypogonadism-focused biotech Acesis Holdings (ACSB) filed to raise $7 million at an $81 million market cap, and Hong Kong-based hair styling products manufacturer Fenbo Holding (FEBO) filed to raise $5 million at a $55 million market cap.
2 Filings During the Week of September 4, 2023
2 Filings During the Week of August 28, 2023
12 Filings During the Week of August 21, 2023
The pipeline saw activity this week, while we saw no new listings. Last week Softback’s software segment’s chip designer Arm (ARM) and grocery delivery platform Instacart (CART) filed for IPOs estimated to be up to $6 billion and $1 billion, respectively. Arm would be the largest offering since late 2021 (RIVN). Four other issuers filed to raise $100+ million; Vietnamese e-commerce play VNG (VNG.RC), radiopharmaceutical therapeutics biotech RayzeBio (RYZB), digital marketing software platform Klaviyo (KVYO), and brain disease biotech Neumora Therapeutics (NMRA). Another quiet week ahead
2 Filings During the Week of August 14, 2023
2 Filings During the Week of August 7, 2023
3 Filings During the Week of July 31st, 2023
4 Filings During the Week of July 24th, 2023
3 Filings During the Week of July 17th, 2023
4 Filings During the Week of July 10th, 2023
4 Filings During the Week of July 3rd, 2023
Chinese car and car part retailer Autozi Internet Technology (AZI) filed to raise $29 million. Sells parallel import cars, as well as auto parts and auto accessories. Texas-based oil and gas E&P Rise Oil & Gas (RISE) filed to raise $12 million. Formed by former executives from Ring Energy, the company has acquired undeveloped property in the Texas portion of the Permian basin. Haymaker Acquisition 4 (HYAC.U), the fourth SPAC led by Steven and Andrew Heyer, filed to raise $200 million to target consumer businesses. Spark I Acquisition (SPKLU), a SPAC formed by SparkLabs Group, filed to raise $100 million to target late-stage tech startups with ties to Asia.
4 Filings During the Week of June 26th, 2023
Switzerland-based Phase 1 biotech developing sublingual peptides for diabetes BioLingus (SUBL) filed to raise an estimated $47 million. $47M. Hong Kong-based provider of underwriting and brokerage services Garden Stage (WIN) filed to raise an estimated $15 million. Bermuda-based video game developer. RoyaLand (RLND) filed to raise an estimated $7 million. Preclinical biotech developing a molecular synthetic THC analog for anxiety and neuro indications MIRA Pharmaceuticals (MIRA) filed to raise an estimated $16 million.
Five IPOs and One SPAC submitted initial filings
Direct-to-consumer cosmetics and personal care products provider ODDITY Tech (ODD) filed to raise an estimated $300 million. Inflammatory disease biotech Apogee Therapeutics (APGE) filed to raise $100 million, in a deal led by Jefferies. Liver disease and cancer biotech Sagimet Biosciences (SGMT) filed to raise $75 million after previously filing for an IPO in April 2021, only to withdraw in March 2022. Packaging maker Unifoil Holdings (UNFL) filed to raise $15 million at a $68 million market cap. Hong Kong-based construction subcontractor Ming Shing Group Holdings (MSGH.RC) filed to raise $15 million at a $60 million market cap.
Nabors Energy Transition II (NETDU), the second SPAC formed by Nabors Industries, filed to raise $300 million to target the energy transition space. Its first SPAC (NETC) announced a merger with Australian solar developer Vast in February.
Three IPOs submitted initial filings
Led by solid tumor biotech Turnstone Biologics (TSBX), which filed to raise $86 million. One blank check IPO also joined the pipeline.
Three IPOs submitted initial filings last week
Electric air travel company Surf Air Mobility (SRFM) filed for a direct listing on the NYSE. Based on share prices in recent private transactions, the company would command a market value of $574 million in its listing; it previously targeted a $1.4 billion valuation when it planned to go public via SPAC merger (terminated in November 2022). Mexican real estate company Vesta Real Estate (VTMX) filed to raise $100 million. The company is profitable and has more than 200 properties in its portfolio. Vesta is currently listed on the Mexican Stock Exchange (VESTA), where it commands a market value of approximately $2.2 billion. Pixie Dust Technologies (PXDT), a Japanese maker of personal care devices and spatial materials, filed to raise $19 million at a $143 million market cap.
Six IPOs submitted initial filings last week
Five IPOs submitted initial filings this past week. Taiwan-based cancer diagnostics developer Advanced Biomed (ADVB) filed to raise $150 million; Univest is the sole bookrunner on the deal. US-based Korean BBQ restaurant chain GEN Restaurant Group (GENK) filed to raise $25 million. Hong Kong-based public relations firm Intelligent Group (INTJ) filed to raise $23 million at a $66 million market cap. Maison Solutions (MSS), a US grocer specializing in Asian merchandise, filed to raise $12 million at a $75 million market cap. Toy maker SRM Entertainment (SRM) filed to raise $9 million at a $50 million market cap.
The sole SPAC to file this past week was Aimei Health Technology (AFJKU), which filed to raise $50 million to target small-cap healthcare.
Four IPOs submitted initial filings last week
Restaurant chain CAVA Group (CAVA), which filed to raise $100 million.
Three IPOs submitted initial filings this past week.
Six IPOs submitted initial filings this past week. Nature Wood Group (NWGL), a Macau-based forestry company with operations in Peru, filed to raise $30 million. Chinese supply chain management provider Majestic Ideal Holdings (MJID) filed to raise $17 million at a $62 million market cap. Hong Kong-based brokerage Solowin Holdings (SWIN) filed to raise $17 million. Chinese office equipment retailer EShallGo (EHGO) filed to raise $15 million at a $116 million market cap. Plant-based snack brand BranchOut Food (BOF) filed to raise $12 million. Chinese medical product maker WORK Medical Technology Group (WOK) filed to raise $10 million.
Three companies submitted initial filings and joined the pipeline. Mail order clothing company JP Outfitters (JPO) filed to raise $17 million, and Israeli 3D printing company XJet (XJET) filed to raise $8 million. Short-term rental operator reAlpha Tech (LPHA.RC) filed for a direct listing on the Nasdaq.
Five IPOs submitted initial filings. Late-stage inflammatory disease biotech ACELYRIN (SLRN) filed to raise $100 million. Bermuda-based reinsurer Fidelis Insurance Holdings (FIHL) also filed to raise $100 million. Veterinary hospital operator Inspire Veterinary Partners (IVP) filed to raise $28 million at a $50 million market cap. Media distributor Alliance Entertainment Holding (AENT) filed to raise $6 million. Luxury car importer Cheetah Net Supply Chain (CTNT) filed to raise $12 million last Friday.
Two small IPOs submitted initial filings. US-based semiconductor play Guerrilla RF (GUER) filed for a $15 million Nasdaq uplisting, and Singapore-based robotic cleaning equipment provider SIMPPLE (SPPL) filed to raise $9 million. Goldman’s MN8 Energy (MNX) disclosed updated financials ahead of its $100 million IPO.
Six IPOs and one SPAC submitted initial filings this past week. Permian Basin energy infrastructure operator Kodiak Gas Services (KGS) filed to raise $100 million. Chinese marketing services provider Xuhang Holdings (SUNH) filed to raise $92 million. Chinese education software provider NetClass Technology (NTCL) filed to raise $17 million at an $84 million market cap. Chinese debt collector GoodFaith Technology (GFCX) filed to raise $15 million at a $115 million market cap. Osteosarcoma-focused biotech OS Therapies (OSTX) filed to raise $10 million at a $116 million market cap. Skin care product maker CoLabs Int’l (CLLB)) filed to raise $6 million at a $201 million market cap.
Ares Acquisition II (AACT.U), the second SPAC formed by Ares Management, filed to raise $400 million to target businesses in North America, Europe, or Asia. Ares Acquisition II is the largest new blank check filing since December 2021.
Three issuers in the pipeline, two small IPOs and one direct listing submitted initial filings. Car sharing platform Turo (TURO) disclosed updated financials ahead of its estimated $300 million IPO.
Three small IPOs and one SPAC submitted initial filings this past week. Drone technology developer Unusual Machines (UMAC) filed to raise $20 million. High-energy plasma medical device developer Origin Life Sciences (OLSI) filed to raise $15 million at a $215 million market cap. Hong Kong-based construction contractor Chi Ko Holdings (CKHL) filed to raise $8 million. SPAC AI Transport Acquisition (AITRU) filed to raise $50 million to target artificial intelligence in transportation.
Five companies submitted initial filings, ZKH Group (ZKH), a Chinese B2B procurement platform for industrial supplies. If the company were to raise $200 million, ZKH’s offering would be the largest US IPO from a Chinese issuer since October 2021. Vietnamese EV manufacturer VinFast Auto (VFS), which disclosed 2022 financials ahead of its estimated $1 billion US IPO.
There were no sizable pricings, two small IPOs submitted initial filings Lucas GC (LGCL), which provides online recruiting and outsourcing services in China, filed to raise $21 million. PSI Group Holdings (PSIG), a Hong Kong-based provider of freight forwarding services, filed to raise $16 million at a $125 million market cap. The calendar got a boost from frac sand miner Atlas Energy Solutions (AESI), which launched its $387 million IPO and is scheduled to trade in the week ahead.
Last week there were six filings. Atmus Filtration Technologies (ATMU) was the standout along with Texas based SPAC “CO2 Energy Transition Corp” targeting the carbon capture, utilization, and storage industry. ATMU is the filtration unit of engine maker Cummins, filed for an IPO for up to $350 million. Serving end-users in approximately 150 countries, Atmus provides filtration products for various on- and off-highway vehicles and equipment. The company’s products are primarily used in the aftermarket, providing a strong recurring revenue base.
In the pipeline frac sand miner Atlas Energy Solutions (AESI) disclosed 2022 financials ahead of its estimated $200 million IPO. Eight IPOs submitted initial filings, the largest plans to raise just $29 million and one SPAC. There are three uplistings: oil and gas producer Alpha Energy (APHE) filed to raise $29 million, Malaysia-based chemical wholesaler BioNexus (BGLC) filed to raise $17 million, and online content moderating service Ealixir (EAXR) filed to raise $15 million.
Four Chinese companies submitted initial filings: industrial shredder producer Harden Technologies (HARD) filed to raise $15 million, logistics services provider Jayud Global Logistics (JYD) filed to raise $12 million, fabric and face mask producer Earntz Healthcare (ETZ) filed to raise $11 million, and organic grocery chain Healthy Green Group (HGRN) filed to raise $17 million. Early-stage medical supplies producer MI Americas (IAMR) filed to raise $10 million.
Five small IPOs submitted initial filings this past week. They were joined by two SPACs (KVISU.RC and SBXC.U), marking the first blank check IPO filings of 2023, compared to 20 by this time last year.
Three IPOs submitted initial filings, Frac sand miner and transporter Atlas Energy Solutions (AESI) filed to raise an estimated $200 million. E-cigarette and cannabis vaping product brand Ispire Technology (ISPR) filed to raise $42 million. Singapore-based interior designer FBS Global (FBGL) filed to raise $15 million.
We saw three new deals join the pipeline led by Chinese pet hospital chain New Ruipeng Pet Group (RPET), which filed to raise $100 million. Korean social media platform Hanryu Holdings (HRYU) filed to raise $35 million, and private jet charter broker Star Jets International (JETR) filed to raise $12 million.
Warrants to Entice New Issuance
Over the last month, a rising number of small deals have opted to offer warrants in their IPOs, either at the time of the initial filing or in a later amendment. In the context of an IPO, warrants give investors the right to purchase a new issuer’s stock at a specific price within a set time frame. That price is usually equal to or slightly greater than the offer price, and the time frame is often within five years after the IPO.
Warrants allow new issuers to both sweeten the pot for investors and provide an additional source of capital for themselves.
While offering warrants may help small deals get done in challenging conditions, it does not provide immunity from poor trading. From 2021 to date, issuers that have gone public after adding warrants are mostly underwater, averaging a -54% return from IPO.
Recent filers that have opted to offer warrants are all micro-caps and span a variety of industries. The group includes both companies filing for fresh listings, as well as those hoping to uplist from the OTC. Non-listed filers feature ramen restaurant chain Yoshiharu Global, Canadian psychotropics company Lucy Scientific Discovery, aquaculture company The tru Shrimp Companies, short-term rental provider CorpHousing Group, and agtech developer Opti-Harvest.
From The TradersCommunity Research Desk