US Weekly IPO and SPAC Monitor: Instacart, Klaviyo, XJet Follow ARM in The Pipeline

The past week’s highlight was Softbank’s IPO of chip designer Arm Holdings’ (ARM) IPO. This successful debut buoyed investor sentiment and hopes this year’s stagnant IPO activity may find life. There were five IPOs that raised a combined $5.4 billion this past week. Arm, the largest IPO of 2023 so far, raised $4.9 billion of that and finished the week up 19%. For the week ahead we have another five deals, led by the IPO market’s first US tech unicorns in nearly two years. Instacart (CART) plans to raise $638 million at a $9.6 billion market cap.

Boston-based Klaviyo (KVYO) plans to raise $499 million at an $8.0 billion market cap. XJet (XJET) plans to raise $6 million at a $77 million market cap. Gamer Pakistan (GPAK) may raise $8 million at a $115 million market cap, and Chinese tech firm Global Mofy Metaverse (GMM) may raise $6 million at a $130 million market cap.

Other IPOs last week were RayzeBio (RYZB) which raised $311 million and finished the week up 33%. Neumora Therapeutics (NMRA) raised and finished the week down 4%. SIMPPLE (SPPL) raise $8 million finished the week down 7%. Nature Wood Group (NWGL) raise $7 million and finished the week down 4%. Arm was the largest offering since late 2021 (RIVN).

Filings this week included European shoemaker Birkenstock Holding (BIRK) filed to raise an estimated $750 million. 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. We also have Clarios (BTRY), which is on file for an estimated $1 billion IPO, as well as American Healthcare REIT (AHR), energy plays BKV Corp (BKV) and MN8 Energy (MNX).

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.

Instacart (CART)

After raising the range on Friday, grocery delivery platform Instacart (CART) plans to raise $638 million at a $9.6 billion market cap. In June 2023, the company connected 7.7 million customers with 600,000 independent shoppers, and its retail partners include 1,400 banners representing over 80,000 stores. While it faces rising competition from DoorDash and others, Silicon Valley-based Instacart was able to grow revenue by 31% in the 1H23, while achieving profitability.

  • Underwriters: Goldman Sachs J.P. Morgan BofA Securities Barclays Citi Baird JMP Securities LionTree Oppenheimer & Co. Piper Sandler SoFi Securities Stifel Wedbush Securities Blaylock Van Drexel Hamilton Loop Capital Market Seelaus Ramirez & Co., Inc Stern Brothers Tigress Financial Partners
  • Headquarters San Francisco, CA, United States
  • Founded 2012
  • Employees 3486
  • Website: Instacart | Grocery Delivery or Pickup from Local Stores Near You

Klaviyo (KVYO)

Boston-based Klaviyo (KVYO) plans to raise $499 million at an $8.0 billion market cap. The SaaS company provides a customer engagement platform that allows businesses to turn first-party data into actionable insights in real time. It also allows for management of marketing messaging across multiple channels, though the company currently depends on third parties for delivery of messages. Fast-growing with positive cash flow, Klaviyo serves over 130,000 customers, primarily in the retail vertical.

  • Underwriters: Goldman Sachs Morgan Stanley Citi Barclays Mizuho Securities William Blair Piper Sandler Truist Securities Baird Canaccord Genuity Needham & Co. TD Cowen
  • Headquarters Boston, MA, United States
  • Founded 2012
  • Employees 1548
  • Website: Marketing Automation for Email Marketing & SMS – Klaviyo

XJet (XJET)

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

Gamer Pakistan (GPAK)

Gamer Pakistan (GPAK) plans to raise $8 million at a $115 million market cap. The pre-revenue company is initially focused on creating men’s and women’s college, inter-university, and professional esports events, particularly with colleges and universities in Pakistan.

Global Mofy Metaverse (GMM) Delayed

Chinese virtual content and digital marketing provider Global Mofy Metaverse (GMM) may raise $6 million at a $130 million market cap. Unprofitable and growing, the company engages in virtual content production, digital marketing, and digital assets development using a proprietary technology platform.

  • Underwriters: Maxim Group LLC
  • Headquarters Beijing, China
  • Founded 2017
  • Employees 30
  • Website: globalmofy.cn

Possible Pricing of IPOs from Past Weeks (incl: Delays)

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

Adlai Nortye (ANL)

Oncology biotech Adlai Nortye (ANL) plans to raise $72 million at an $896 million market cap. Operating through subsidiaries in the US and China, Adlai Nortye’s lead candidate (in-licensed from Novartis) is a kinase inhibitor designed to act against solid tumors that is currently undergoing a Phase 3 trial. The company expects to submit an NDA to the FDA seeking potential accelerated approval in the 2H24.

  • Underwriters: Cantor Fitzgerald CITIC CLSA
  • Headquarters Grand Cayman, Cayman Islands
  • Founded 2004
  • Employees 129
  • Website: Adlai Nortye

RoyaLand (RLND)

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.

RoyaLand
  • Underwriters: Revere Securities, Dominari Securities
  • Headquarters: Hamilton, Bermuda
  • Founded 2022
  • Employees 0
  • Website: Homepage – The RoyaLand

Opti-Harvest (OPHV)

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.

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.

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.

SolarJuice

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.

Lead Real Estate (LRE) – Delayed

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.

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.

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) – 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: 0 SPAC, 2 IPO Week

The past week’s highlight was Softbank’s IPO of chip designer Arm Holdings’ (ARM) IPO. This successful debut buoyed investor sentiment and hopes this year’s stagnant IPO activity may find life. There were five IPOs that raised a combined $5.4 billion this past week. Arm, the largest IPO of 2023 so far, raised $4.9 billion of that and finished the week up 19%. Radiopharmaceutical biotech RayzeBio (RYZB) raised $311 million and finished the week up 33%. Neumora Therapeutics (NMRA) raised and finished the week down 4%. SIMPPLE (SPPL) raise $8 million finished the week down 7%. Nature Wood Group (NWGL) raise $7 million and finished the week down 4%. Arm was the largest offering since late 2021 (RIVN).

Arm (ARM)

Softback’s software segment’s chip designer Arm (ARM) IPO is the largest IPO of 2023 so far, and the largest deal since Rivian (RIVN) in late 2021. The offering would raise nearly $1 billion more than the year’s current leader, J&J spin-off Kenvue (KVUE).

Arm priced at the top of the range to raise $4.9 billion at a $52.9 billion market cap.  It had plans to raise $4.7 billion by offering 95.5 million ADSs (100% secondary) at a price range of $47 to $51. Certain cornerstone investors, including Intel and NVIDIA, intend to purchase $735 million worth of ADSs in the offering (16% of the deal). At the midpoint of the proposed range, Arm Holdings would command a fully diluted market value of $50.8 billion.

Arm is the industry leader of CPUs. They architect, develop, and license high-performance, low-cost, and energy-efficient CPU products and related technology, on which many of the world’s leading semiconductor companies and OEMs rely to develop their products.

“Our energy-efficient CPUs have enabled advanced computing in greater than 99% of the world’s smartphones, for the year ended December 31, 2022, and more than 250 billion chips, cumulatively, powering everything from the tiniest of sensors to the most powerful supercomputers. … We estimate that approximately 70% of the world’s population uses Arm-based products, and the scale of Arm’s reach continues to expand, with more than 30 billion Arm-based chips reported as shipped in the fiscal year ended March 31, 2023 alone, representing an approximately 70% increase since the fiscal year ended March 31, 2016.”

  • Underwriters: The offering is being led by Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc. The filing lists 24 other underwriters below that top tier.
  • Headquarters Cambridge, United Kingdom
  • Founded 1990
  • Employees 5963
  • Website: Building the Future of Computing – Arm®
How to Value SoftBank’s Semiconductor Arm IPO Among the NVidia and AI Frenzy

Arm traded up 25% in its debut, and finished the week up 19%.

Nature Wood Group (NWGL)

Nature Wood Group (NWGL), a Macau-based vertically-integrated forestry company with facilities in Peru, plans to raise $9 million at a $166 million market cap. The company produces a range of products, including logs, decking, flooring, and sawn timber. Nature Wood owns natural forest concessions and cutting rights for the exploitation of timbers in Peru, covering approximately 615,333 hectares.

Nature Wood group
  • Underwriters: Orientiert XYZ Securities, Prime Number Capital
  • Headquarters Macau
  • Founded 2011
  • Employees 218
  • Website: https://www.retailroadshow.com/presentation/#/pres?presid=1491980

Nature Wood Group finished the week down 4%.

RayzeBio (RYZB)

Radiopharmaceutical biotech RayzeBio (RYZB) priced its upsized IPO at the top of the range to raise $311 million at a $1.1 billion market cap. RayzeBio’s lead candidate is designed to deliver a highly potent alpha particle radioisotope to tumors overexpressing somatostatin receptor type 2. The company is enrolling a registrational Phase 3 trial for the treatment of gasteroenteropancreatic neuroendocrine tumors.

  • Underwriters: J.P. Morgan Jefferies Evercore ISI Truist Securities
  • Headquarters San Diego, CA, United States
  • Founded 2020
  • Employees 88
  • Website: Front Page – RayzeBio

RayzeBio finished the week up 33%.

Neumora Therapeutics (NMRA)

Neuropsych biotech Neumora Therapeutics (NMRA) priced at the midpoint to raise $250 million at a $2.8 billion market cap. The company’s lead candidate is a novel once-daily oral kappa opioid receptor antagonist that is being developed for the treatment of major depressive disorder. Neumora is initiating a pivotal Phase 3 program and expects topline results in the 2H24. It finished the week down 4%.

  • Underwriters: J.P. Morgan BofA Securities Stifel Guggenheim Securities RBC Capital Markets William Blair
  • Headquarters Watertown, MA, United States
  • Founded 2019
  • Employees 110
  • Website: Neumora (neumoratx.com)

NMRA finished the week down 4%.

SIMPPLE (SPPL)

Singaporean robotic cleaning equipment provider SIMPPLE (SPPL) priced its downsized IPO at the low end to raise $8 million at an $84 million market cap. SIMPPLE provides autonomous robotic cleaning equipment and relating software in Singapore, and has been adopted in schools, hospitals, and universities in the country.

SIMPPLE finished the week down 7%.

Filings Monitor

2023

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

How to Value SoftBank’s Semiconductor Arm IPO Among the NVidia and AI Frenzy

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.

Houston SPAC CO2 Energy Transition filed IPO Targeting Carbon Capture

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.

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

From The TradersCommunity Research Desk