US Weekly IPO and SPAC Monitor: Intel’s Mobileye Filed for an IPO in Quiet Period

No surprise after the disaster of the three major US stock indexes ugly closes Friday to finish off a disastrous September and the IPO market there are currently no IPOs scheduled for the first week of October. The biggest news of the week came from Intel’s Mobileye (MBLY), which filed for an IPO we estimate could raise up to $2.5 billion. The third quarter was worst third quarter for new issuers in over a decade, with 25 IPOs raising $2.4 billion as the 2022 US IPO market remains on track to raise the lowest proceeds of any year ever.

Mobileye Radar View

Another quiet week as IPO continue to dry up in this risk off market. Two SPACs began trading this past week, joined by a nano-cap IPO. Blank check company dMY Squared Technology Group (DMYY.U) downsized to raise $60 million, and Asia-focused SPAC Qomolangma Acquisition (QOMOU) raised $50 million. Laser Photonics (LASE) raised $15 million at a $39 million market cap.

The biggest news of the week came from Intel’s Mobileye (MBLY), which filed for an IPO we estimate could raise up to $2.5 billion. We saw again several other small deals that had been targeting debuts this past week but did not get done. There are reports that the Nasdaq will be scrutinizing small IPOs with some of outside edge volatile pop-and-drop trading.

US IPO Week Ahead

Possible Pricing from IPOs from Past Weeks

via Renaissance Capital

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.

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: 1 IPO Week

Another quiet week as IPO continue to dry up in this risk off market. Niccolo de Masi and Harry You’s latest blank check company dMY Squared Technology Group (DMYY.U) downsized to raise $60 million, and Asia-focused SPAC Qomolangma Acquisition (QOMOU) raised $50 million. Laser Photonics (LASE), which makes laser-based maintenance systems, raised $15 million at a $39 million market cap.

The biggest news of the week came from Intel’s Mobileye (MBLY), which filed for an IPO we estimate could raise up to $2.5 billion. We saw again several other small deals that had been targeting debuts this past week but did not get done. There are reports that the Nasdaq will be scrutinizing small IPOs with some of outside edge volatile pop-and-drop trading.

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.

IPO Week Recap

Laser Photonics (LASE)

Eco based laser-based system maker Laser Photonics (LASE) plans to raise $15 million. A vertically integrated manufacturing company for photonics-based industrial products and solutions, including disruptive laser technologies. Have developed and standardized a line of laser cleaning equipment CleanTech™ a new approach to materials processing, surface preparation and industrial cleaning. CleanTech is proven technology, and CleanTech products have been sold to and are currently in use by Fortune 1000 companies, the U.S. military, and small businesses.

Laser Photonics finished down 48.4%.

“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