PAPL - IPO Roundup: Lockup periods expire for Kenvue and Acelyrin

October, 30 2023 10:33 AM Pineapple Financial Inc.

2023-10-30 10:33:58 ET

In the closing quarter of 2023, the IPO market slowed significantly, with only a few companies making their debuts. This trend is likely to continue in the near term as investors remain cautious amid rising interest rates and an uncertain environment.

Notably, the Renaissance IPO ETF ( NYSEARCA: IPO ) grew more than 20% YTD, outperforming the S&P 500's ( SP500 ) 7.7%, but has recently fallen back and has been on the decline since August.

Here are some of the other major headlines in the IPO market:

Coming IPOs that are expected to price this week

Pineapple Financial ( NYSEMKT: PAPL ) is raising $4.4M by issuing 0.9M shares at an estimated price between $4-$6 per share. Description: Canadian mortgage brokerage.

Prospect Energy Holdings ( AMGSU ) is raising $75M by offering 7.5M units at $10 each, with each unit containing one share of common stock and one warrant. Description: Energy SPAC targeting business in Asia Pacific.

Shimmick ( SHIM ) is raising up to $50.1M in an initial public offering by offering 4.6M shares at an estimated price between $10-$12 per share. Description: A California-based construction firm specializes in public water infrastructure.

Inno Holdings ( INHD ) is raising $10M by offering 2.5M shares at a price of $4 per share. Description: A building technology company.

NYIAX ( NYX ) is raising $7.5M by issuing 1.9M shares at a price of $4 per share. Description: An adtech platform.

Zhong Yuan Bio-Technology Holdings (ZYB) is raising $6.6M by offering 1.1M shares at an estimated price between $5-$7 per share. Description: Chinese producer of nervonic acid dietary supplements for cognitive health.

Note: Many IPOs have been delayed recently, and there could be last-minute debut changes or cancellations.

New notable filings

Raytech Holding ( RAY ) has filed with the SEC to raise up to $14M by offering 3M shares at a price range of $4 to $5. Raytech operates through its subsidiary Pure Beauty and specializes in sourcing and wholesaling hair dryers. It plans to list on the Nasdaq under the symbol RAY. Description: A Hong Kong-based personal care electrical appliance wholesaler.

Agriculture & Natural Solutions Acquisition (ANSCU) has filed with the SEC to raise up to $300M in an initial public offering. The company plans to offer 30 million units at $10, each containing one share of common stock and one-half of a warrant, exercisable at $11.50. It plans to list on the Nasdaq under the symbol ANSCU. Description: A company backed by Riverstone and Impact Ag.

Reticulate Micro ( RMIC ) has filed with the SEC to raise up to $12M in an initial public offering. It plans to offer 2M shares at a price range of $5 to $7. The company plans to list on the NYSE American under the symbol RMIC. Description: A company specializing in video compression-based software and hardware products.

JVSPAC Acquisition (JVSAU) plans to raise $50M in an initial public offering by offering 5M units at $10 each. The company aims to target lifestyle and tech businesses with potential for revenue growth and strong market positions. It plans to list on the Nasdaq under the symbol JVSAU. Description: A Hong Kong-based blank-check company.

FG Merger II plans to raise up to $75M in an initial public offering by offering 7.5M units at $10 each. The company aims to target the North American financial services industry, focusing on businesses with strong management teams, recurring revenues, and high barriers to entry. The company plans to list on Nasdaq but has not selected a symbol yet. Description: A blank-check company.

Terms and changes

Aimei Health Technology (AQJKU) has raised its proposed IPO deal size by 20% and now plans to raise $60M by offering 6M units at $10 vs. the previous offer of 5M units at the same price. The SPAC plans to list on the Nasdaq under the symbol AFJKU and intends to target small-cap companies in North America, Europe, and the Asia Pacific regions that are developing assets in the biopharmaceutical, medical technology/medical device, and diagnostics spaces.

Lockup period expirations

Kenvue ( KVUE ) on 10/31/2023. Price movement over the past six months: -32.3% .

Acelyrin ( SLRN ) on 11/01/2023. Price movement over the past six months: -47.44% .

SA commentary

Kenvue faces significant challenges in the consumer healthcare sector, including sluggish growth, intense competition, and middle-tier brand positions," writes Sapphire Wealth Insights. "I see limitations on the company's capacity for significant dividend growth in the near term, as indicated by its relatively high payout ratio.

Company Name:	Pineapple Financial Inc.
Stock Symbol:	PAPL
Market:	NYSE
Website:	gopineapple.com

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