Wall St set for higher open as investors focus on Fed minutes
February 22, 2023
Money Control TV Interview 2/23/23
February 23, 2023Summary
- Two small issuers began trading this past week, only one of which was large enough to be included in our IPO stats, as several deals were postponed or delayed. Two SPACs also priced.
- Eight IPOs submitted initial filings, the largest of which plans to raise just $29 million, as well as one SPAC.
- Two small deals are currently scheduled for the short holiday week ahead. We could see sizable launches after Presidents’ Day as more companies finalize year-end financials.
Olemedia
Two small issuers began trading this past week, only one of which was large enough to be included in our IPO stats, as several deals were postponed (SODR, MGRX) or delayed (TRNR, INTS, NRXS). Two SPACs also priced. Eight IPOs submitted initial filings, the largest of which plans to raise just $29 million, as well as one SPAC.
The most notable news came from the pipeline, with frac sand miner Atlas Energy Solutions (AESI) disclosing 2022 financials ahead of its estimated $200 million IPO. As more companies finalize their year-end financials, the calendar could start to see another crop of large IPOs heading into March.
The NFT Gaming Company (NFTG), which is developing a digital gaming platform, raised $7 million at a $50 million market cap. The company, which has yet to generate revenue, plans to integrate non-fungible tokens into games on its platform. NFT Gaming Co. finished the week down -8%.
While not included below, BullFrog AI (BFRG), which is developing an AI/ML platform for drug development, raised $8 million at a $37 million market cap. It finished down -27%.
Two SPACs priced this past week. Mars Acquisition (MARXU) raised $60 million to target innovative technologies, and Distoken Acquisition (DISTU) raised $60 million to target the technology sector in Asia.
| 3 IPOs During the Week of February 13th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First-Day Return | Return at 02/17 |
| Distoken Acquisition (DISTU) | $60M | $82M | 0% | +2% | +2% |
| Blank check company targeting the tech sector in Asia. | |||||
| Mars Acquisition (MARXU) | $60M | $81M | 0% | +2% | +2% |
| Blank check company targeting the technology innovations market. | |||||
| NFT Gaming Co. (NFTG) | $7M | $50M | 0% | -2% | -8% |
| Developing an NFT-focused digital gaming platform. | |||||
Eight small IPOs submitted initial filings this past week, including three uplistings: oil and gas producer Alpha Energy (OTCPK:APHE) filed to raise $29 million, Malaysia-based chemical wholesaler BioNexus (OTCPK:BGLC) filed to raise $17 million, and online content moderating service Ealixir (OTCPK: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.
| 9 Filings During the Week of February 13th, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Jayud Global Logistics (JYD) | $12M | Industrials | Benchmark |
| Cross-border logistics services provider in China. | |||
| Oak Woods Acquisition (OAKUU) | $50M | SPAC | EF Hutton |
| Blank check company targeting tech-enabled healthcare and medical services. | |||
| Healthy Green Group (HGRN) | $17M | Consumer Staples | EF Hutton |
| Operates a chain of organic food stores in Hong Kong under the Greendotdot brand. | |||
| Earntz Healthcare (ETZ) | $11M | Consumer Discretionary | Network 1 |
| Chinese manufacturer of nonwoven fabrics and non-surgical face masks. | |||
| Alpha Energy (APHE) | $29M | Energy | ThinkEquity |
| Oil and natural gas production company with operations in Oklahoma. | |||
| BioNexus (BGLC) | $17M | Industrials | Network 1 |
| Wholesales chemical products and provides non-invasive blood tests in Asia. | |||
| Harden Technologies (HARD) | $15M | Industrials | Tiger Brokers |
| Chinese manufacturer of industrial shredders and other equipment. | |||
| MI Americas (IAMR) | $10M | Health Care | Spartan Capital |
| Early-stage medical supplies manufacturer focused on latex gloves and disposable cold packs. | |||
| Ealixir (EAXR) | $15M | Technology | Spartan Capital |
| Provides a suite of services focused on the removal of negative online content. | |||
Week Ahead
Two small deals are currently scheduled for the short holiday week, though only one is eligible for inclusion in our IPO stats.
While the calendar is quiet for now, we could see sizable launches after Presidents’ Day as more companies finalize year-end financials. Some large issuers in the pipeline have already started updating their filings. Frac sand miner Atlas Energy Solutions (AESI) disclosed 2022 financials this past week ahead of its estimated $200 million IPO, and thrift store chain Savers Value Village (SVV) provided preliminary results earlier this month ahead of its estimated $250 million IPO.
On the calendar, advertising contract marketplace NYIAX (NYX) plans to raise $9 million at a $71 million market cap. The company’s platform facilitates the listing, buying, and selling of advertising or audience campaigns, utilizing smart contracts and blockchain technology. Small and highly unprofitable, NYIAX’s platform is protected by a joint patent held by the company and a Nasdaq subsidiary.
While not included below, Chinese e-commerce play ICZOOM Group (IZM) may raise $7 million at a $46 million market cap. The company operates an online B2B electronics trading platform primarily for SMEs in China, offering semiconductor products and other electronic components. ICZOOM is profitable and growing.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| NYIAX (NYX) New York, NY | $9M $71M | $5 1,850,000 | Boustead WestPark Capital |
| Provides an advertising marketplace and contract management platform. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/16/2023, the Renaissance IPO Index was up 23.1% year-to-date, while the S&P 500 was up 6.8%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was up 2.0% year-to-date, while the ACWX was up 7.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche (OTCPK:POAHY) and Kuaishou (OTCPK:KUASF).
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
