US Weekly IPO and SPAC Monitor: SharkNinja, Pixie Dust, Fitell, NeurAxis

After busy week there are four or more companies on the docket to list in the week ahead. US-based appliance maker SharkNinja (SN) is the largest listing. We have IPOs from Japanese device maker Pixie Dust Technologies (PXDT), Australian gym and fitness equipment retailer Fitell (FTEL) and NeurAxis (NRXS) with plans to list. There were seven IPO and SPACs last week that priced led by the year’s first direct listing Surf Air Mobility (SRFM) opening 75% below its reference price to begin trading at $5. From its opening price, Surf Air finished down 49%.

SharkNinja

Two small Japanese issuers priced on the Nasdaq. Insurance services provider Warrantee (WRNT) downsized its ADS offering and finished down 56%. Blockchain firm Earlyworks (ELWS) raised $6 million at an $80 million market cap and finished down 56%. Real estate lending platform Janover (JNVR) finished down 45.75%. Drone tech developer ParaZero Technologies (PRZO) and finished down 37%. Two blank check IPOs also priced this past week; Haymaker Acquisition 4 (HYAC.U) and Keen Vision Acquisition (KVACU).

Previously delayed agriculture equipment maker Opti-Harvest (OPHV) was also expected to price but didn’t. The chatter is we could still see a few more large deals in the next couple of weeks. There are eight sizable issuers in the active pipeline, including battery maker 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), and Brazilian steakhouse Fogo Hospitality (FOGO).

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.

SharkNinja (SN)

SharkNinja is set to enter public waters on Monday, July 31, when shares held by existing owners will become freely tradable on the NYSE. The company’s former parent and largest supplier, Hong Kong-listed JS Global Lifestyle (1691.HK), recently distributed SharkNinja shares to its shareholders, with the aim of unlocking value on a US exchange. SharkNinja has the #1-selling vacuum and #1 selling blender brands in the US, with $3.8 billion in annual revenue (12% EBITDA margin); going forward it will need to prove that it can return to meaningful growth post-COVID.

  • Underwriters: Listed shares becoming available on NYSE
  • Headquarters Needham, MA, United States
  • Founded 2007
  • Employees 2800
  • Website: NeurAxis

Pixie Dust Technologies (PXDT)

Japanese device maker Pixie Dust Technologies (PXDT) plans to raise $19 million at a $143 million market cap, with cornerstone investors covering 43% of the deal. The company’s products include an ultrasonic scalp care device, a voice detection device, an acoustic stimulation device, a sound-absorbing material, and a factory workflow tool.

Fitell (FTEL)

Australian gym and fitness equipment retailer Fitell (FTEL) plans to raise $17 million at a $61 million market cap. The company’s branded equipment includes weights, bars, power racks, benches, and gym machines.

NeurAxis (NRXS)

NeurAxis (NRXS) is a growth stage company focused on developing neuromodulation therapies to address chronic and debilitating conditions in children. The Carmel, IN-based company plans to raise $15 million by offering 1.9 million shares at a price range of $7 to $9. At the midpoint of the proposed range, NeurAxis would command a fully diluted market value of $48 million. With one FDA indication, functional abdominal pain associated with IBS in adolescents 11-18 years old on the market, additional clinical trials of PENFS in multiple pediatric conditions are underway focused on unmet healthcare needs in children.

  • Underwriters: Alexander Capital, WallachBeth Capital
  • Headquarters Carmel, IN
  • Founded 2011
  • Employees 16
  • Website: NeurAxis

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

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.

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

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: 2 SPAC, 5 IPO Week

We had five IPO’S’s price this week and two IPO’s this week. Aviation company Surf Air Mobility (SRFM) completed the first direct listing of 2023, opening 75% below its reference price to begin trading at $5. Surf Air finished down 49%. Two small Japanese issuers debuted on the Nasdaq. Insurance services provider Warrantee (WRNT), it finished down 45%. Blockchain firm Earlyworks (ELWS) finished down 56%. Real estate lending platform Janover (JNVR) and drone tech developer ParaZero Technologies (PRZO) also priced.

Two blank check IPOs priced this past week. Steven and Andrew Heyer’s Haymaker Acquisition 4 (HYAC.U) raised $200 million to acquire a consumer business, and Keen Vision Capital’s ESG-focused Keen Vision Acquisition (KVACU) raised $130 million.

Surf Air Mobility (SRFM)

Aviation company Surf Air Mobility (SRFM) completed the first direct listing of 2023, opening 75% below its reference price to begin trading at $5. Surf Air Mobility’s NYSE reference price was set at $20 per share ahead of its direct listing today.

The NYSE reference price does not reflect an offering price, or the opening price for its shares. Instead, the opening public price will be determined by the designated market maker, using buy and sell orders collected by the NYSE from broker-dealers.

Surf Air provides a regional air mobility platform and intends to develop powertrain technology to electrify existing fleets with its commercial partners, though these partners have limited experience in electrification. Together with Southern Airways (pending merger), the company’s footprint covers 44 cities, serving over 99,000 passengers with over 18,000 departures in the 1Q23. Both Surf Air and Southern are highly unprofitable with going concern warnings.

Surf Air Mobility

From its opening price, Surf Air finished down 49%.

Earlyworks (ELWS)

Japanese blockchain firm Earlyworks (ELWS) raised $6 million at an $80 million market cap. Has a proprietary private blockchain technology, Grid Ledger System (“GLS”), to leverage blockchain technology in various applications in a range of industries.

Earlyworks finished down 56%.

Warrantee (WRNT)

Insurance services provider Warrantee (WRNT) downsized its ADS offering to raise $10 million at a $97 million market cap.

WRNT finished down 45%.

ParaZero Technologies (PRZO)

ParaZero Technologies priced at the low end to raise $8 million at a $27 million market cap. The company had revised the terms for its upcoming IPO from plans to raise $10 million by offering 2.0 million shares at a price range of $4 to $6. Concurrently, selling shareholders have registered 4.0 million shares, which may be offered and sold from time to time pursuant to the separate resale prospectus.

ParaZero Technologies, which is developing autonomous parachute safety systems for commercial drones is based in Kiryat Ono, Israel and was founded in 2013 and plans to list on the Nasdaq under the symbol PRZO. Its patented technology, the SafeAir system, is designed to protect hardware, people, and payload in the event of an in-flight failure.

ParaZero Technologies finished down 37%.

Janover (JNVR)

Real estate lending platform Janover (JNVR) raised $6 million at a $40 million market cap. The company has an online platform to provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders.

Janover (JNVR) finished down 45.75%.

Filings Monitor

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