IPOS - U.S. IPO Weekly Recap: E-Commerce And Diagnostics Debut In A 2 IPO Week
- Two IPOs began trading in another quiet week for the IPO market. In the pipeline, two IPOs and one SPAC submitted initial filings.
- Chinese e-commerce play WeTrade Group priced at the low end to raise $40 million at a $780 million market cap.
- Two small deals are scheduled to price in the week ahead as the IPO market stays on track to post its slowest year in over a decade.
Two IPOs began trading in another quiet week for the IPO market. In the pipeline, two IPOs and one SPAC submitted initial filings.
Chinese e-commerce play WeTrade Group ( WETG ) priced at the low end to raise $40 million at a $780 million market cap. WeTrade operates a membership-based platform where it provides technical services and solutions.
While the company has demonstrated growth, it has a small customer base and is operating as a going concern. WeTrade popped just over 400% on its first day and finished the week up 378%.
Holdover Virax Biolabs ( VRAX ) raised $7 million at a $57 million market cap. Operating in the UK and Hong Kong, Virax Biolabs provides a portfolio of diagnostics test kits and med-tech and PPE products for viral diseases. The company has a limited operating history and is highly unprofitable. Virax soared 264% on its first day and finished the week up 107%.
| 2 IPOs During the Week of July 18th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/22 |
| Republic Power Group (RPGL) | |||||
| $16M | |||||
| Technology | |||||
| Univest Sec. | |||||
| Provides software development services in Southeast Asia. | |||||
| Whale Point Acquisition (WPAU) | |||||
| $150M | |||||
| SPAC | |||||
| BTIG | |||||
| Blank check company targeting the fintech sector. | |||||
| SolarMax Technology ( SMXT ) | |||||
| $30M | |||||
| Utilities | |||||
| ViewTrade | |||||
| Sells solar energy systems in the US and works on solar farm projects in China. |
Week Ahead
Two small deals are scheduled to price in the week ahead as the IPO market stays on track to post its slowest year in over a decade.
Mobile Global Esports ( MGAM ) plans to raise $17 million at an $82 million market cap. Operating as MOGO, the company is launching a platform initially for esports competitions played on mobile devices by university teams and players representing universities located in India and South Asia. MOGO currently does not have significant revenues or operations.
Immunotherapy biotech MAIA Biotechnology ( MAIA ) plans to raise $10 million at an $83 million market cap. MAIA’s lead candidate is expected to enter Phase 2 human trials in Australia and Europe in 2022 for NSCLC, and the company plans to seek accelerated approval in the US for treatment of advanced NSCLC in late 2024.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Mobile Global Esports ( MGAM ) San Clemente, CA | |||
| $17M $82M | |||
| $4-$5 3,800,000 | |||
| WestPark Capital | |||
| Developing an esports platform for university competitions in India and South Asia. | |||
| MAIA Biotechnology ( MAIA ) Chicago, IL | |||
| $10M $83M | |||
| $5-$7 1,666,667 | |||
| ThinkEquity | |||
| Phase 2 biotech developing targeted immunotherapies for cancer. |
Street research is expected for one company, and lock-ups will be expiring for one company.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/21/2022, the Renaissance IPO Index was down 41.6% year-to-date, while the S&P 500 was down 15.4%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Airbnb ( ABNB ) and Snowflake ( SNOW ).
The Renaissance International IPO Index was down 30.4% year-to-date, while the ACWX was down 17.2%. Renaissance Capital’s International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include Kuaishou ( KUASF ) and EQT.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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U.S. IPO Weekly Recap: E-Commerce And Diagnostics Debut In A 2 IPO Week