BMR - U.S. IPO Weekly Recap: February Closes Out With One Micro-Cap As IPO Calendar Gets A Boost
2023-03-04 08:08:00 ET
Summary
- Just one small IPO and one SPAC began trading this past week. Two small IPOs submitted initial filings.
- The first SPAC IPO to upsize since March 2022, SilverBox III raised $120 million.
- Frac sand miner Atlas Energy Solutions plans to raise $387 million at a $2.2 billion market cap.
Just one small IPO and one SPAC began trading this past week. Two small IPOs submitted initial filings.
Though there were no sizable pricings, the calendar got a boost from frac sand miner Atlas Energy Solutions (AESI), which launched its $387 million IPO; it’s scheduled to trade in the week ahead. The news capped off a solid but volatile month for the IPO market, which saw a handful of $100mm+ deals test the waters despite a seesawing IPO Index. Read more about the past month in our February IPO Market Update .
Israeli video and image software provider Beamr ( BMR ) raised $8 million at a $55 million market cap. Beamr offers encoding, transcoding, and optimization solutions for videos and images, and counts streaming platforms and Hollywood studios among its clients. The company is small and unprofitable, and saw revenue decline in the 1H22. Beamr finished down -13%.
The first SPAC IPO to upsize since March 2022, SilverBox III ( SBXC.U ) raised $120 million. The SPAC is the third to be formed by members of SilverBox Capital, and it intends to acquire one or more businesses with an aggregate enterprise value in excess of $750 million.
| 2 IPOs During the Week of February 27th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 03/03 |
| PSI Group Holdings ( PSIG ) | |||||
| $16M | |||||
| Industrials | |||||
| Univest Sec. | |||||
| Hong Kong-based provider of air and ocean freight forwarding services. | |||||
| Lucas GC ( LGCL ) | |||||
| $21M | |||||
| Industrials | |||||
| Benchmark | |||||
| Provides online recruiting and outsourcing services in China. |
Week Ahead
After a slow end to February, the IPO market is set to get a boost from energy play Atlas Energy Solutions ( AESI ).
What would be the year's second largest IPO to date, frac sand miner Atlas Energy Solutions plans to raise $387 million at a $2.2 billion market cap. Led by successful oil and gas founder Bud Brigham, Atlas mines sand in the Permian Basin for use in oil and gas fracking, controlling over 14K acres of open-dune sand reserves. Its differentiated property allows for electric dredging, which it states reduces environmental impact. The company expects to spend $600+ million over the next two years to complete its current initiatives.
Xiao-I (AIXI) plans to raise $47 million at a $564 million market cap. The company's portfolio of cognitive intelligence technologies is based on natural language processing and AI implementation, with a focus on conversational AI. It serves businesses primarily in China, and its five largest customers accounted for nearly three-quarters of revenue in the 1H22. Xiao-I has demonstrated growth and margin expansion, though continued investment in R&D is expected to weigh on profitability.
Online retailer PishPosh ( BABY ) plans to raise $9 million at a $55 million market cap. PishPosh sells baby products, primarily strollers, through its website, third party marketplaces, and its on-site boutique, focusing on mid- to higher-income demographics. The company grew revenue by 95% in the 9mo22, though it remains unprofitable. It has revised its terms several times ahead of pricing.
A handful of small holdovers are also scheduled to price in the week ahead. Alternative medicine practice Nava Health ( NAVA ) plans to raise $16 million at an $83 million market cap. Agriculture equipment maker Opti-Harvest ( OPHV ) plans to raise $8 million at a $111 million market cap. Game studio and NFT marketplace Ultimax Digital ( NFTU ) plans to raise $8 million at an $80 million market cap.
While not included below, Chinese B2B platform ICZOOM Group ( IZM ) plans to raise $7 million at a $46 million market cap.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Nava Health MD ( NAVA ) Columbia, MD | |||
| $16M$83M | |||
| $62,731,938 | |||
| WestPark Capital | |||
| Provides alternative and holistic medicine services in clinics and online. | |||
| Opti-Harvest ( OPHV ) Los Angeles, CA | |||
| $8M$111M | |||
| $42,000,000 | |||
| WestPark Capital | |||
| Makes sunlight optimization products for agriculture. | |||
| Ultimax Digital ( NFTU ) New York, NY | |||
| $8M$80M | |||
| $4 - $51,875,000 | |||
| WestPark Capital | |||
| Operates a video game development and publishing studio and an NFT marketplace. | |||
| PishPosh ( BABY ) Lakewood, NJ | |||
| $9M$55M | |||
| $51,766,618 | |||
| Boustead Sutter Securities | |||
| Online baby product retailer. | |||
| Atlas Energy Solutions ( AESI ) Austin, TX | |||
| $387M$2,150M | |||
| $20 - $2318,000,000 | |||
| Goldman BofA | |||
| Mines and transports in-basin frac sand for the oil and gas industry. | |||
| Xiao-I (AIXI) Shanghai, China | |||
| $47M$564M | |||
| $6.80 - $8.806,000,000 | |||
| Prime Num. Cap. Guotai Junan | |||
| Chinese cognitive intelligence company focused on conversational AI. |
Street research is expected for five companies, and one lock-up period will be expiring.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/2/2023, the Renaissance IPO Index was up 13.1% year-to-date, while the S&P 500 was up 4.0%. Renaissance Capital's IPO ETF (NYSE: IPO ) tracks the index, and top ETF holdings include Airbnb ( ABNB ) and Snowflake ( SNOW ). The Renaissance International IPO Index was down 1.0% year-to-date, while the ACWX was up 4.9%. Renaissance Capital's International IPO ETF (NYSE: IPOS ) tracks the index, and top ETF holdings include Porsche and Kuaishou.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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U.S. IPO Weekly Recap: February Closes Out With One Micro-Cap As IPO Calendar Gets A Boost