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A cannabis micro-cap broke the IPO market’s month-long dry spell last week to become the latest small issuer to soar on its debut, up 163% on the first day.
A SPAC also priced in the slowest week for blank check IPOs since August. The pipeline saw some activity, with two IPOs and four SPACs filing initial filings.
Akanda (AKAN) raised $16 million on a market cap of $116 million. The Company plans to supply wholesalers in international markets with medical grade cannabis products with cultivation facilities in Southern Africa. The operation is still in its early stages and has so far generated minimal revenue. Akanda was down after its first day and ended up up 85%.
SPAC Goldenstone acquisition (GDSTU) has raised $50 million to acquire growth-oriented companies with enterprise values ranging from $150 million to $500 million.
| 2 IPOs in the week of March 14, 2022 | |||||
|---|---|---|---|---|---|
|
Exhibitor company |
Act size |
market lid at the IPO |
price vs. Focus |
First Day To return |
To return at 03/18 |
| Akanda (Akan) | $16M | $116 million | -20% | +163% | +85% |
| UK based cannabis producer with cultivation facilities in Southern Africa. | |||||
| Goldenstone Acquisition (GDSTU) | 50 million dollars | $66 million | 0% | +0% | +0% |
| Blank check companies for growth-oriented companies. | |||||
Two IPOs filed initial filings. Chinese manufacturer of toner cartridges Planet Image International (PLIM.RC) filed to raise $27 million and diagnostics and PPE supplier Virax Biolabs (VRAX) submitted to raise $17 million.
Four SPACs submitted, led by technology-focused companies Acquisitions in Israel (ISRLU) and energy-oriented VIKASA SPAC Series I acquisition (VSSAU), both of which applied to raise $200 million.
| 6 submissions in the week of March 14, 2022 | |||
|---|---|---|---|
|
Exhibitor company |
Act size |
sector |
Lead insurer |
| Aura FAT Projects Acq. (AFARU) | 100 million dollars | SPAC | EF Hutton |
| Blank check company targeting emerging technologies with growth potential in Southeast Asia and Australasia. | |||
| VIKASA SPAC I (VSSAU) | 200 million dollars | SPAC | Cantor Fitz. |
| Blank check renewable energy company. | |||
| Virax Biolabs (VRAX) | $17M | health care | Boustead |
| UK based provider of diagnostic tests and PPE for viral diseases. | |||
| Takeovers in Israel (ISRLU) | 200 million dollars | SPAC | BTIG |
| Blank check company targeting Israeli or Israel-affiliated technology companies. | |||
| Planetary Image (PLIM.RC) | $27M | Industry | network 1 |
| Chinese manufacturer of toner cartridges. | |||
| Climate Rock (CLRCU) | $75 million | SPAC | maxim |
| Blank check company targeting the sustainable energy industry in OECD countries. | |||
There are currently no IPOs scheduled for the coming week, although some SPACs could be added to the calendar later in the week.
New issuers continue to delay launches, likely deterred by inflation concerns, the war in Ukraine and poor IPO yields in recent months. One of the big deals waiting in the pipeline is the spin-off of Bausch Health Bausch + Lomb (BLCO), mattress retailer mattress proof (MFRM), carsharing platform Turo (TURO) and digital advertising company Aleph group (ALEF).
Blocking periods expire for up to 11 companies.
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 3/17/2022, the Renaissance IPO Index was down 27.3% year-to-date, while the S&P 500 was down 7.1%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW).
The Renaissance International IPO Index is down 23.9% year-to-date, while the ACWX is down 7.1%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK:VOLAF) and Kuaishou (OTCPK:KUASF).
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Publisher’s Note: The summary points for this article were selected by Seeking Alpha editors.
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