While all the talk has been about Softback’s software segment’s chip designer Arm (ARM) IPO estimated to be up to $5 billion, which is oversubscribed six times and due to list next week, we did have some listings this week. Hong Kong-based brokerage Solowin Holdings downsized and priced at the low end to raise $8 million at a $56 million market cap. SWIN finished up 23%. Podcast producer Courtside Group completed its direct listing on the Nasdaq. PODC finished up 2%. There is also holdover Gamer Pakistan (GPAK) planning to raise $8 million at a $115 million market cap.
Arm would be the largest offering since late 2021 (RIVN). UK-based chip designer Arm (ARM), grocery delivery platform Instacart (CART) is also in the pipeline.
There are other sizable issuers in the active pipeline, including luxury sandal maker Birkenstock Group, and grocery deliver platform Instacart who have all indicated plans to list in the coming month. 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.
Softback’s software segment’s chip designer Arm (ARM) IPO 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.
At $4.7 billion, Arm is slated to be the largest IPO of 2023, 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 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®
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.
- Underwriters: WestPark Capital
- Headquarters Henderson, NV, United States
- Founded 2021
- Employees 7
- Website: Gamer Pakistan – Gamer Pakistan
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
Possible Pricing of IPOs from Past Weeks (incl: Delays)
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
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
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.
- Underwriters: Orientiert XYZ Securities, Prime Number Capital
- Headquarters Macau
- Founded 2011
- Employees 218
- Website: https://www.retailroadshow.com/presentation/#/pres?presid=1491980
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)
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.
- 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
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.
- Underwriters: Network 1 Financial Securities
- Headquarters Tokyo, Japan
- Founded 2001
- Employees 46
- Website: Tokyo Real Estate | Lead Real Estate Co.,LTD (lead-real.co.jp)
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: 0 SPAC, 2 IPO Week
Another quiet week for IPO listings, just the two, Hong Kong-based brokerage Solowin Holdings downsized and priced at the low end to raise $8 million at a $56 million market cap. SWIN finished up 23%. Podcast producer Courtside Group completed its direct listing on the Nasdaq. PODC finished up 2%.
Solowin Holdings (SWIN)
Hong Kong-based brokerage Solowin Holdings (SWIN) downsized and priced at the low end to raise $8 million at a $56 million market cap. Serving mostly Chinese investors in Asia, the company provides securities-related, investment advisory, corporate finance, and asset management services.
- Underwriters: EF Hutton
- Headquarters Hong Kong, China
- Founded 2017
- Employees 16
- Website: 華贏證券_互聯網持牌券商_極速在線開戶, 支援eDDA入金 (solomonwin.com.hk)
Solowin finished up 23%.
Courtside Group (PODC)
Podcast producer Courtside Group (PODC), which does business as PodcastOne, completed its direct listing on the Nasdaq. Shares opened for trading at $4.30, well below the anticipated $8 per share minimum; from the opening price, Courtside Group finished up 2%.
- Underwriters: Roth Capital
- Headquarters Beverly Hills, CA, United States
- Founded 2012
- Employees 41
- Website: PodcastOne – Over 200 of your favorite podcasts!
Courtside Group finished up 2%
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