Before we delve into the hottest IPOs of the week ahead, it’s worth considering how many companies went public in 2022.
The status of the IPOs
A newly released analysis by EY shows that the number of IPOs worldwide fell by 45% in 2022. After a record year, just 1,333 companies went through the IPO process in 2022, with total IPO proceeds also falling 61% to $175.9 billion.
The Americas saw the largest declines in both listings and revenue, falling 76% and 95%, respectively. The US remained the most active market in the region, accounting for 69% of IPOs in America in 2022.
EY Global IPO Leader Paul Go commented:
“A record year for IPOs in 2021 has given way to increasing volatility from rising geopolitical tensions, inflation and aggressive rate hikes. Weak equity markets, valuations and post-IPO performance have further deterred IPO investor sentiment.”
However, EY pointed to good news on the horizon. The accounting giant said there is a strong IPO pipeline but the atmosphere is likely to “remain gloomy” until:
-
Improved stock market performance.
-
Lower inflation and end of rate hikes.
-
calming down of geopolitical tensions.
-
Reduced impact of the COVID-19 pandemic on the economy.
Here are two IPOs rumored to be happening in the coming week:
MGO Global Inc
This company is offering 1.5 million shares of common stock at an assumed price of $5 per share in its IPO.
It is included in the NASDAQ Index under the ticker symbol MGOL. The company’s IPO date is yet to be confirmed, but some sources have given the company an expected IPO date of Friday, January 6th.
What does MGO Global Inc. do?
In its own words, MGO is a lifestyle brand portfolio company focused on strategically leveraging the fame, celebrity power and global social media influence of world-class athletes, entertainers and other cultural icons to bring fresh, modern and… create compelling product and apparel brands.
While this sounds potentially far-reaching, the company’s current activities primarily concern Lionel Messi. Considered one of the greatest footballers in the world and having just won the FIFA World Cup while captaining his national team, the immensely talented Argentine has hundreds of millions of followers and is recognized by billions around the world.
MGO signed a global licensing agreement with Messi in October 2018 to advance the creation of “The Messi Brand”, which it says is a premium line of functional and sporty casual wear, accessories and home décor inspired by the superstar’s personality and forward-thinking fashion is sense.
However, that license was later terminated and replaced by an agreement describing the company with “similar terms.” To that end, the company has a range of Messi-related branded collections for men, women and kids.
The Florida-based company was founded in 2018 but has remote employees in New York, London and South America.
Who is Leading MGOL’s IPO?
The listing is led by Boustead Securities and Sutter Securities.
Use of Proceeds from MGOL’s IPO
The company expects to use the net proceeds from its IPO, estimated at approximately $5.9 million, for two primary purposes. Approximately two-thirds of the net proceeds of approximately $3.8 million will be used for team expansion and marketing. The remaining 35% or $2.1 million is earmarked for general and administrative corporate purposes, including working capital and capital expenditures.
Additionally, the company notes in its IPO prospectus that it intends to acquire other apparel companies but has not identified or started serious discussions with potential targets.
Skyward Specialty Insurance
This company is listing 8.5 million shares at an expected price of $14 to $16 each.
The 8.5 million shares consist of 4.75 million common shares to be offered by Skyward Specialty, 3.75 million common shares to be sold by certain existing shareholders of the Company and up to an additional 1.275 million shares to be sold by existing shareholders are to be sold, which the underwriters have a call option.
The company will be included in the NASDAQ Index under the ticker symbol SKWD.
What does the Skyward special insurance cover?
This company is a specialty insurance company providing commercial property and casualty products and solutions primarily in the United States on an unlicensed and licensed basis.
The company says five key elements underpin its strategy:
-
Delivering differentiated products, services and solutions that address unique needs.
-
Attracting and retaining exceptional underwriting and claims talent.
-
Expanding the expertise of its employees through advanced technology and analytics.
-
Empowering its underwriting and claims teams with significant decision-making authority and the application of their expertise.
-
Foster a culture that promotes agility and responsiveness to market opportunities and shifts.
The company has eight underwriting divisions: Accident & Health, Captives, Global Property, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S.
It also has a number of subsidiaries, including Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company.
Who is leading SKWD’s IPO?
Barclays Capital and Keefe, Bruyette & Woods are acting as joint lead book-running managers for the proposed offering.
Us of SKWD IPO Proceeds
The company says the primary purpose of the offering is to increase capitalization and financial flexibility, as well as create a public market for its common stock.
The Company intends to use the net proceeds to contribute at least $45 million of capital to its insurance company subsidiaries to spur growth, with the balance for general corporate purposes.
Check out our recent articles:
Is DBGI stock a good investment?
Digital Twin Stock Matterport
ORIC rushes higher on Pfizer deal
Investing in whiskey
State of the ARKK: Should you invest in the ARK Innovation ETF?
Is Tesla a good stock to buy?
Is Amazon Still a Good Investment?
The Best LiDAR Stocks to Invest In
Comments are closed.