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Two IPOs in the past week led by Energy Play Atlas Energy Solutions (AESI), which completed the second-biggest IPO of the year to date. Several small stores were delayed (IZM, NAVA, NFTU, OPHV) and in an unusual move, online retailers PishPosh (INFANT) postponed its $9 million IPO a day after pricing was announced.
Frac sand miner Atlas Energy Solutions Priced below range to raise $324 million on market cap of $1.8 billion. Led by successful oil and gas founder Bud Brigham, Atlas mines sand in the Permian Basin for use in oil and gas fracking and controls over 14,000 hectares of open dune sand reserves. The company expects to spend over $600 million over the next two years to complete its current initiatives. Atlas closed down 8%.
Xiao I (AIXI) downsized and priced at the low end to raise $39 million at a price of $490 million market cap. Its portfolio of cognitive intelligence technologies is based on natural language processing and AI implementation with a focus on conversational AI and serves enterprises mainly in China. The company has demonstrated growth and margin improvement, with continued investments in research and development expected to weigh on profitability. Xiao-I finished down 5%.
| 2 IPOs in the week of March 6, 2023 | |||||
|---|---|---|---|---|---|
| IssuerBusiness | DealSize | Market capitalization IPO | Price vs Midpoint | Return on the first day | Return on 03.10 |
| Xiao-I (HERE) | $39 million | $490 million | -13% | -15% | -5% |
| Chinese cognitive intelligence company focused on conversational AI. | |||||
| Atlas Energy Solutions (AESI) | $324 million | $1,800 million | -16% | -6% | -8th% |
| Mining of frac sands in the Permian Basin for the oil and gas industry. | |||||
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Five companies filed initial filings, led by 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 by a Chinese issuer since October 2021. Other big news from the pipeline came from the Vietnamese electric vehicle maker VinFast Auto (VFS), which released 2022 financials ahead of its estimated $1 billion US IPO.
| 5 submissions in the week of March 6, 2023 | |||
|---|---|---|---|
| IssuerBusiness | DealSize | sector | lead underwriter |
| Lafayette Energy (LEC) | $7M | energy | Aegis cap. |
| Oil and Gas E&P in Louisiana. | |||
| Tungray Technologies (TRSG) | $13M | Industry | tiger broker |
| Provides custom industrial manufacturing services in Singapore and China. | |||
| Davis Commodities (DTCK) | $17M | consumer goods | Invest sec |
| Commodity trading company based in Singapore that focuses on sugar, rice and fats. | |||
| Himalaya Shipping (OTCPK:HSPPF) | $10M | Industry | DNB markets |
| Acquisition of a fleet of ships for sea shipping of dry bulk goods. | |||
| ZKH Group (ZKH) | 200 million dollars | technology | Goldman (Asia) |
| Chinese B2B sourcing platform for industrial supplies. | |||
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In the private corporate sector, SoftBank is supported poor made headlines with reports that it could fetch more than $8 billion if listed in the US. The chip designer joins a growing list of tech names targeting IPOs in 2023.
Only two small companies are currently scheduled to be listed in the coming week, neither of which qualify for inclusion in our IPO stats.
Early stage gold and copper mining company US gold mines (USGO) plans to raise $20 million with a market cap of $121 million and offer units. The company, formed from the dual public GoldMining, is focused on the exploration and advancement of a 53,700 acre project in the Yentna Mining District of Alaska. US GoldMining has no operating income and does not expect to generate any income in the foreseeable future.
leftovers ICZOOM Group (IZM) plans to raise $7 million on a market cap of $46 million. Under the name of Pai Ming Shenzhen, Nano-Cap provides an electronic components trading platform for small and medium-sized enterprises in China. ICZOOM is profitable and growing.
A road research is expected for a company in the coming week and five lockdown periods are expiring. Sign up for a free trial of IPO Pro to get access to street research and lock expiration dates.
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 3/9/2023, the Renaissance IPO Index was up 9.0% year-to-date, while the S&P 500 is up 2.4%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index is down 2.8% year-to-date, while the ACWX is up 4.8%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
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Editor’s note: The summary bullet points for this article were selected by Seeking Alpha editors.
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