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Three micro caps debuted last week during the IPO market’s annual February doldrums. Nine SPACs also cheap. The pipeline has remained relatively calm, with two IPOs and a SPAC making initial filings.
The Arena Group (NEW: AREN), a media holding company that operates Sports Illustrated, TheStreet and other brands, raised $30 million with a market cap of $172 million. Previously listed on the OTC as theMaven (MVEN), the company completed its uplisting on the NYSE American and began trading on Wednesday, a day before its offering was priced. Fast growing and highly unprofitable The Arena Group traded below its last close on the OTC and ended flat.
Power plug device company Sky Technologies (NASDAQ:SKYX) enlarged and priced above the range to raise $23 million, a fraction of its $1.4 billion market capitalization at the IPO. Despite the price increase, Sky collapsed by 25%. The company’s products are mainly used for lights and ceiling fans, and it has developed intelligent devices in recent years. The company is very unprofitable and has so far only generated limited income.
The Japanese technology company HeartCore (NASDAQ:HTCR) Priced in the middle of the reduced range to raise $15 million on a market cap of $98 million. Under the control of its Founder and CEO, HeartCore offers software through two business lines: Customer Experience Management and Digital Transformation. The company has demonstrated growth and profitability since 2020. HeartCore closed down -17%. Nine SPACs went public last week. Acquisition of Aurora Technology (NASDAQ:ATAKU)which targets companies founded by Asian and Asian-American entrepreneurs, and Jaguar Global Growth I (JGGCU), founded by Jaguar Growth Partners and Hennessy Capital Group, have both raised $200 million.
Although not listed below, three warrant-attached deals were offered in the past week at prices: Scottish biotech TC BioPharm (NASDAQ:TCBP) raised $18 million at a market cap of $138 million; AdTech platform Direct Digital Holdings (NASDAQ:DRCT) raised $15 million at a market cap of $78 million; and insulin pump developer Modular Medical (NASDAQ:MODD) Raised $15 million at a market cap of $60 million. Also commercial REIT Modiv (NYSE:MDV) Raised $1 million at a market cap of $189 million. Shrimp farmer tru Shrimp Co. (BTRU) has been landed. These deals are excluded from Renaissance Capital’s 2022 statistics.
| 12 IPOs in the week of February 7, 2022 | |||||
|---|---|---|---|---|---|
| IssuerBusiness | DealSize | Market capitalization IPO | Price vs Midpoint | Return on the first day | Return on 11.02 |
| Acquisition of the counter press (NASDAQ:CPAQU) | $75 million | $98 million | 0% | +0% | +0% |
| Blank check sports, media and data analytics company. | |||||
| Evergreen Corp (EVGRU) | 100 million dollars | 130 million dollars | 0% | +0% | +0% |
| Blank check companies for technology-oriented companies in Asia. | |||||
| HNR Acquisition (HNRAU) | $75 million | $101M | 0% | +0% | +0% |
| Blank check company formed by Houston Natural Resources targeting the North American energy sector. | |||||
| Jaguar Global Growth I (JGGCU) | 200 million dollars | $267 million | 0% | +0% | +0% |
| Blank check company founded by Jaguar Growth Partners and Hennessy Capital Group. | |||||
| Acquisition of Signal Hill (SGHLU) | 100 million dollars | $125 million | 0% | +0% | +0% |
| Blank check company focused on DTC media, technology and emerging digital businesses. | |||||
| The Arena Group (AREN) | 30 million dollars | $172 million | -35% | +0% | +0% |
| Media holding company that operates Sports Illustrated, TheStreet and other brands. | |||||
| Relativity Capture (RACYU) | $125 million | $161 million | 0% | +0% | +0% |
| Blank check company targeting the cannabis industry. | |||||
| Aurora Technology Acq. (ATAKU) | 200 million dollars | $253 million | 0% | +0% | +0% |
| Blank check company targeting technology companies founded by Asian or Asian-American entrepreneurs. | |||||
| LIV Capital Acq. II (NASDAQ:LIVBU) | 100 million dollars | $126 million | 0% | +0% | +0% |
| Second blank check company led by LIV Capital Group to target Mexico. | |||||
| by Nordic Acquisition (NASDAQ:BYNOU) | 150 million dollars | $188 million | 0% | -1% | -1% |
| Blank check company targeting a fintech company in Northern Europe. | |||||
| HeartCore Enterprises (HTCR) | $15M | $98 million | -17% | -1% | -17% |
| Provides enterprise customer experience software and IT services in Japan. | |||||
| Sky Technologies (SKYX) | 23 million dollars | $1,378 million | 17% | -fifteen% | -25% |
| Provides universal power outlets for lights and ceiling fans. | |||||
Two IPOs made initial filings this week. Digital advertising firm Aleph Group (ALEF), which focuses on emerging markets, submitted to raise an estimated $300 million. Aesthetic medical device manufacturer Solta Medical (SLTA), spun off from Bausch Health, applied to raise an estimated $200 million.
The week’s only SPAC filing, Endeavor Acquisition (ENACU), filed to raise $225 million to target the consumer and technology sectors in Southeast Asia.
| 3 submissions in the week of February 7, 2022 | |||
|---|---|---|---|
| IssuerBusiness | DealSize | sector | lead underwriter |
| Acquisition of Efforts (ENACU) | $225 million | SPAC | Cantor Fitz. |
| Blank check company targeting the consumer and technology sectors in Southeast Asia. | |||
| Release medicine (SLTA) | 200 million dollars | health care | gold man |
| Manufacturer of aesthetic medical products is spun off from Bausch Health. | |||
| Aleph Group (ALEF) | 300 million dollars | communication services | JP Morgan |
| Provides tech platforms with ad distribution services in emerging markets. | |||
IPO Market Snapshot
The Renaissance IPO Indices are market capitalization weighted baskets of newly listed companies. As of 2/10/22, the Renaissance IPO Index was down 15.4% year-to-date, while the S&P 500 was down 5.4%. Renaissance Capital IPO ETF (NYSEARCA: IPO) tracks the index, and top ETF holdings include Snowflake (NYSE: SNOW) and Uber Technologies (NYSE:UBER). The Renaissance International IPO Index is down 9.2% year-to-date, while the ACWX is down 0.4%. International IPO ETF by Renaissance Capital (NYSEARCA:IPOS) follows the index, and top ETF holdings include Volvo Car Group and Zhejiang Kuaishou Information Technology.
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Publisher’s Note: The summary points for this article were selected by Seeking Alpha editors.
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