U.S. IPO Weekly Recap: Small Deals Drive Activity In The IPO Market's Short Week
Summary
- Four small issuers began trading this past week.
- Two small IPOs submitted initial filings.
- Three companies are currently scheduled to list in the week ahead.
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Four small issuers began trading this past week, three of which are eligible for inclusion in our IPO stats. One small deal was postponed (VCIG), and a few others were delayed (UCAR, GDHG, GMM).
Ispire Technology (ISPR) downsized and priced at the midpoint to raise $19 million at a $369 million market cap. Formed to acquire certain businesses of Chinese vaping brand and failed IPO candidate Aspire Global (ASPG), Ispire sells its tobacco products worldwide, excluding China and Russia. It currently sources 99% of its products from an entity owned by the CEO, though it plans to use a portion of IPO proceeds to build out manufacturing in Vietnam and California. Ispire finished up 1%.
Singapore-based Multi Ways Group (MWG) upsized and priced at the midpoint to raise $18 million at a $77 million market cap. Multi Ways supplies a wide range of heavy construction equipment to more than 100 customers across various industries and countries. Profitable and growing, its top five customers accounted for nearly half of 1H22 revenue. Multi Ways soared more than 250% on its first day, the first IPO to do so in 2023, but deflated in the aftermarket to finish up 126%.
Malaysian IoT provider ARB IOT Group (ARBB) priced at the low end to raise $5 million at a $105 million market cap. Fast-growing and profitable, the company is focused on IoT growth in the ASEAN region and generates a majority of revenue from IoT system development and IoT smart agriculture. ARB IOT Group finished down 2%.
While not included below, paper packaging producer Millennium Group International Holdings (MGIH) raised $5 million at a $45 million market cap. Millennium Group finished down 38%.
| 3 IPOs During the Week of April 3rd, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 04/07 |
| Multi Ways Holdings (MWG) | $18M | $77M | 0% | +255% | +126% |
| Singapore-based supplier of heavy construction equipment. | |||||
| Ispire Technology (ISPR) | $19M | $369M | 0% | +8% | +1% |
| Sells branded tobacco and cannabis vape devices primarily in the US and Europe. | |||||
| ARB IOT Group (ARBB) | $5M | $105M | -20% | -4% | -2% |
| Provides IoT system integration and support services in the ASEAN region. | |||||
Two small IPOs submitted initial filings. US-based semiconductor play Guerrilla RF (OTCQX:GUER) filed for a $15 million Nasdaq uplisting, and Singapore-based robotic cleaning equipment provider SIMPPLE (SPPL) filed to raise $9 million. In other pipeline news, Goldman's MN8 Energy (MNX) disclosed updated financials ahead of its $100 million IPO.
| 3 Filings During the Week of April 3rd, 2023 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Inflection Point Acq. II (IPXXU) | $200M | SPAC | Cantor Fitz. |
| Second blank check company formed by Kingstown Capital targeting disruptive growth sectors. | |||
| Guerrilla RF (OTCQX:GUER) | $15M | Technology | Laidlaw (UK) |
| US-based fabless semiconductor provider for radio frequency applications. | |||
| SIMPPLE (SPPL) | $9M | Technology | Maxim |
| Provides industrial robotic cleaning equipment in Singapore. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 4/5/2023, the Renaissance IPO Index was up 13.4% year-to-date, while the S&P 500 was up 7.0%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 2.7% year-to-date, while the ACWX was up 7.4%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
Week Ahead
Three companies are currently scheduled to list in the week ahead, two of which are eligible for inclusion in our IPO stats. Other small deals may also join the calendar to price during the week.
While there are no sizable deals currently on the calendar, several in the pipeline have provided recent updates ahead of potential April launches. This past week, Goldman Sachs' MN8 Energy (MNX) disclosed 2022 financials ahead of its $100 million IPO. Other larger issuers that have filed recent updates include J&J's consumer health unit Kenvue (KVUE) and Cummins spin-off Atmus Filtration (ATMU).
Holdover U Power (UCAR) plans to raise $18 million at a $368 million market cap in the coming week. The company is developing battery-swapping stations in China under the UOTTA brand, after originally starting as a vehicle-sourcing service provider. U Power is highly unprofitable and has a limited operating history.
Singapore-based cancer biotech CytoMed Therapeutics (GDTC) plans to raise $11 million at a $51 million market cap. The company is developing three candidates built on a proprietary platform licensed by the R&D agency A*STAR. CytoMed is currently finalizing a trial of its lead candidate and plans to begin recruiting patients in the 2H23.
While not included below, early-stage gold-copper mining company U.S. GoldMining (USGO) plans to raise $15 million at a $117 million market cap, offering units. Spun out of dual-listed GoldMining, the company is focused on exploring and advancing a project in Alaska. U.S. GoldMining has no operating revenues and does not anticipate generating revenues for the foreseeable future.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| U Power (UCAR) Shanghai, China | $18M$368M | $6 - $82,500,000 | WestPark Capital |
| Launching automated battery-swapping stations for electric vehicles in China. | |||
| CytoMed Therapeutics (GDTC) | $11M$51M | $4 - $52,412,369 | Benchmark Axiom Cap. |
| Singaporean preclinical biotech developing gamma-delta T cell therapies for cancer. | |||
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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