US Weekly IPO and SPAC Monitor: Following Mobileye’s Strong Debut Watch for Refreshed Filings

Following the strong debut of the Intel Mobileye IPO there are no confirmed IPOs scheduled for the week ahead but some shuffling of papers for a number of micro-caps on the calendar looking to price on a “day-to-day” basis. Often run ups in the stock market as we have seen in the past week bring a few out as brokers look to shift deals in the pipeline to investors. A feature of the IPO market this year is the many names coming up for pricing and being delayed. Two holdovers from the past weeks include Isotope enrichment company ASP Isotopes (ASPI) and solid tumor biotech Intensity Therapeutics (INTS). Yes, we know these keep holding over 🙁

Businesswoman

Last week we only had the one IPO, Intel’s Mobileye Global (MBLY). Six small IPOs submitted initial filings, including five Chinese companies. Hong Kong-based Decca Investment (DCCA), Millennium Group International Holdings (MGIH) and Prestige Wealth (PWM) all filed. Chinese Zhong Yuan Bio Technology (ZYBT.RC) and Lemeng Holdings (LIAI) both filed. Meanwhile the only US-based company to file in the past week was Nava Health MD (NAVA).

IPO lockups periods expire during the week for blocks of shares of Austin Gold (AUST), PepGen (PEPG), and Kiboko Gold (KIB:CA).

Self-Driving Tech Mobileye Gained 38 percent on Debut Valuing the IPO at $23 billion

US IPO Week Ahead

Possible Pricing from IPOs from Past Weeks

ASP Isotopes (ASPI)

ASP Isotopes (ASPI) plans to raise $12 million at a $205 million market cap. The pre-commercial stage company has an exclusive license for the Aerodynamic Separation Process (ASP) of isotope enrichment and will initially focus on the production and commercialization of enriched Molybdenum-100 (“Mo-100”). Klydon has agreed to provide us a first commercial-scale Mo-100 enrichment plant located in South Africa with a manufacturing capacity of 20 kg/year of 95% enriched Mo-100 when fully operational. ASP Isotopes has a limited operating history and has yet to generate revenues.

Intensity Therapeutics (INTS)

Intensity Therapeutics

Oncology biotech Intensity Therapeutics (INTS) plans to raise $10 million at an $82 million market cap. Intensity Therapeutics, Inc. is a clinical stage biotechnology company passionately committed to applying scientific leadership in the field of localized cancer reduction leading to anti-cancer immune activation.

Their approach involves the direct injection into tumors of a unique product created from their DfuseRx discovery platform. One challenge they have identified with current intratumoral (IT) treatment approaches is that a tumor’s lipophilic, high fat and pressurized microenvironment does not effectively absorb water-based products. Evidence shows the mechanism of tumor killing achieved by their drug candidate also leads to systemic immune activation in certain cancers.

Beamr (BMR)

Beamr

Beamr (BMR), an Israeli video encoding and image optimization software provider, plans to raise $15 million at a $73 million market cap. The company currently licenses three core video and image compression and counts streaming platforms and Hollywood studios among its clients. At the heart of their patented optimization technology is the proprietary Beamr Quality Measure, or BQM, that is highly correlated with the human visual system. BQM is integrated into their Content Adaptive Bitrate, or CABR, system, which maximizes quality and remove visual redundancies resulting in a smaller file size.

However, Beamr is small and unprofitable, and saw revenue decline in the 1H22.

  • Underwriters: ThinkEquity
  • Headquarters Herzeliya, Israel
  • Founded 2009
  • Employees 28
  • Website: www.beamr.com

Alopexx (ALPX)

Alopexx (ALPX) plans to raise $15 million at a $39 million market cap. The company is 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, their vaccine candidate, AV0328, has been shown to be well tolerated with no serious adverse events observed.

  • Underwriters: ThinkEquity
  • Headquarters Cambridge, MA
  • Founded 2006
  • Employees 3
  • Website: www.alopexx.com

Lead Real Estate (LRE)

Japanese luxury real estate developer Lead Real Estate (LRE) plans to raise $27 million at a $196 million market cap. Growing developer of luxury residential properties, including single-family homes and condominiums, across Tokyo and Kanagawa prefecture. In addition, they operate hotels in Tokyo and lease apartment building units to individual customers in Japan and Dallas, Texas. Primarily generate revenue from developing and selling single-family homes and condominiums. Since inception in 2001, have delivered more than 1,000 single-family homes and 25 condominiums.

YanGuFang Group (JUNS)

YanGuFang Group (YGF), a Chinese producer of oat and grain products, plans to raise $30 million at a $210 million market cap. Note that YanGuFang Group is a holding company incorporated as an exempted company on May 28, 2020 under the laws of the Cayman Islands. As a holding company with no material operations of its own, it conducts substantially all of its operations through its subsidiary and the VIEs in China. YGF is primarily engaged in the production, research and development, and sales of oat and grain products through our direct salesforce and distribution network.

Jupiter Neurosciences (JUNS)

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.

Jupiter Neurosciences

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.

Alopexx (ALPX)

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)

Lichen China (LICN) (Possible was expected last week)

China-based Lichen China (LICN) is expected to raise $25 million on Friday and begin trading on Monday, the company is a leading financial and taxation service provider in China in terms of revenue, according to the industry report of Frost & Sullivan. Have operated as a dedicated financial and taxation solution service specialist in China for over 17 years. Operate in the PRC under the “Lichen” brand. New business line of software and maintenance services in 2019 to expand software product offerings to enterprise customers, universities, colleges and educational institutes and have started to generate revenue from provision of such services since then.

US IPO Weekly Recap: One IPO Week

Last week we only had the one IPO, Intel’s Mobileye Global (MBLY). Six small IPOs submitted initial filings, including five Chinese companies.

IPO Week Recap

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 2022 IPO stats.

Hong Kong-based Decca Investment (DCCA) filed to raise $33 million, Hong Kong-based paper packing maker Millennium Group International Holdings (MGIH) filed to raise $23 million and Hong Kong-based asset manager Prestige Wealth (PWM) filed to raise $15 million.

Chinese advertising service provider Lemeng Holdings (LIAI) filed to raise $18 million and Chinese supplement producer Zhong Yuan Biotechnology (ZYBT.RC) filed to raise $15 million.

Meanwhile the only US-based company to file in the past week was alternative medicine practice Nava Health MD (NAVA), which filed to raise $12 million.

Dealogic Reports show around 87% of companies that went public in the U.S. last year are trading below their offering prices, down more than 49% on average as of last Friday’s close. The S&P 500 is down 23% this year, while the tech-heavy Nasdaq Composite has fallen 31%.

Mobileye

Mobileye

Mobileye Global, Intel’s self-driving vehicle technology business, after pricing above the range, the year’s only sizable IPO to do so. It raised $861 million at a $17 billion market cap. The company’s offering represents the third largest in 2022 so far. Mobileye shares rose 38% on its debut and finished the week up 29%. INTC was sold off briskly on the news as the number was far below expectations of the $30 billion figure Intel had flouted about a month ago. The company is only floating 5% of its basic shares outstanding, well below the typical 15%, in light of current market conditions and market reaction. It plans to list on the Nasdaq under the symbol MBLY

  • Underwriters: Goldman Sachs Morgan Stanley Evercore ISI Barclays Citi BofA Securities RBC Capital Markets Mizuho Securities WR Securities Nomura Securities BNP Paribas Cowen Siebert Williams Shank PJT Partners MUFG Needham & Co. Raymond James Loop Capital Markets Blaylock Van Academy Securities Drexel Hamilton Independence Point Securities CICC Cabrera Capital Markets Guzman & Company
  • Headquarters Jerusalem, Israel
  • Founded 1999
  • Employees 3,100
  • Website: Mobileye | Driver Assist and Autonomous Driving Technologies

Mobileye Closed Up 29%

Self-Driving Tech Mobileye Gained 38 percent on Debut Valuing the IPO at $23 billion

“The IPO market is on pace for its worst year in decades, leaving fledgling companies with few options but to burn through cash while they wait for the stock market to calm. Late last year, hundreds of companies were in the final stages of preparing to go public, encouraged by the best 18 months ever for U.S. initial public offerings. Then a combination of factors—sky-high inflation, rising interest rates and Russia’s invasion of Ukraine—sent shock waves through the stock market. The IPO pipeline froze. So far this year, traditional IPOs have raised only $5.1 billion all told, Dealogic data show. Typically at this point in the year, traditional IPOs have raised around $33 billion… Last year at this point, these offerings raised more than $100 billion.”

August 22 – Wall Street Journal (By Corrie Driebusch)
US IPO Issuance in August Highest For 2022

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.

Source: Completely warranted: Small IPOs are enhancing their deals with warrants – Renaissance Capital

From The TradersCommunity Research Desk