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After a week without IPOs or SPACs, May ended with a small deal. Three IPOs and one SPAC filed initial filings.
Zhongyang Financial Group (TOP) priced at the lower end too Raise $25 million with a market cap of $175 million. The Hong Kong-based online brokerage specializes in trading stocks, futures and options and generates most of its revenue from flat commission fees. Zhong Yang rose 240% on his debut and ended the week up 221%.
Although not included below, nano cap SaverOne (SVRE) has raised $12 million at a market capitalization of $19 million through a unit offering. The Tel Aviv-listed company is developing a system to block cellphone use while driving.
| 1 IPO during the week of May 30, 2022 | |||||
|---|---|---|---|---|---|
| IssuerBusiness | DealSize | Market capitalization IPO | Price vs Midpoint | Return on the first day | 3/6 returned |
| Zhongyang Financial (TOP) | 25 million dollars | $175 million | -9% | +240% | +221% |
| Online brokerage based in Hong Kong. | |||||
Adama’s One (JEWL), an early-stage producer of lab-grown diamonds, applied for $30M raising, AdTech platform NYIAX (NYX) applied for $20 million raising and Phase 2 biotechnology Shuttle Pharma (SHPH) submitted to raise $14 million. SPAC Acquisition of Mobiv (MOBVU), which aims to target the EV industry in Asia and Europe, applied to raise $100 million.
| 4 submissions in the week of May 30, 2022 | |||
|---|---|---|---|
| IssuerBusiness | DealSize | sector | lead underwriter |
| Shuttle Pharmaceuticals (SHPH) | $14M | health care | Boustead |
| Phase 2-mature biotechnological development of drugs to improve radiation therapy. | |||
| Adama’s One (JEWEL) | 30 million dollars | materials | Alexander Capital |
| Early stage producer of lab grown diamonds for jewelry and industrial use. | |||
| Mobiv Acquisition (MOBVU) | 100 million dollars | SPAC | EF Hutton |
| Blank check companies for the electric vehicle industry in Asia and Europe. | |||
| NYIAX (NYX) | 20 million dollars | technology | Boustead |
| Provides an advertising marketplace and contract management platform. | |||
After weeks of little to no activity, the summer IPO market starts with a blank calendar, with just one small IPO to price in the week ahead. Other small issuers and SPACs may join later in the week.
Spin off from SPI Energy Phoenix engine (PEV) plans to raise $20 million with a market cap of $168 million. Operating under the name Phoenix Motorcars, the company manufactures electric drive systems and electric vehicles and markets and sells electric vehicle chargers. A total of 104 electric shuttle buses and work trucks had been delivered by December 31, 2021. Phoenix Motor is highly unprofitable and has yet to generate significant revenue.
| US IPO Calendar | |||
|---|---|---|---|
| IssuerBusiness | Transaction SizeMarket Cap | Price RangeShares submitted | TopBookrunner |
| Phoenix Motor (PEV) Anaheim, CA | $20M $168M | $7 – $92,500,000 | Prime number. Chapter IV |
| Electric drive system and vehicle manufacturer is spun off from SPI Energy. | |||
Street searches are expected for three companies and lockdowns are pending for up to four companies, including some of the last big deals of 2021.
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 6/2/2022, the Renaissance IPO Index was down 43.6% year-to-date, while the S&P 500 was down 11.8%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and CrowdStrike Holdings (CRWD). The Renaissance International IPO Index is down 26.9% year-to-date, while the ACWX is down 10.9%. 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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Editor’s note: The summary bullet points for this article were selected by Seeking Alpha editors.
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