LQR - U.S. IPO Weekly Recap: IPO Market Sees Fitness Liquor Marketing And Medical Devices
2023-08-12 06:00:00 ET
Summary
- Three small issuers began trading this past week, two of which were eligible for inclusion in our IPO stats.
- While most IPOs are biding their time through the August break, the SPAC market is churning out deals.
- Three IPOs are currently scheduled to list in the week ahead, although other small issuers may join the calendar during the week.
Three small issuers began trading this past week, two of which were eligible for inclusion in our IPO stats.
Australia-based Fitell (FTEL) priced at the low end to raise $15 million at a $56 million market cap. The fitness retailer sells branded equipment including weights, bars, power racks, benches, and gym machines. It plans to launch smart equipment and virtual fitness offerings in 2023. Fitell is small and competes with much larger players in the fitness market. Fitell finished down 50%.
LQR House (LQR) priced at the midpoint to raise $5 million at a $56 million market cap. Small and highly unprofitable, the company provides digital marketing and brand development to the alcoholic beverage space. LQR has also developed premium limited batch spirit brands and established a wine club, but does not sell or distribute any alcoholic products. LQR finished down 40%.
While not included below, medical device maker Neuraxis (NRXS) raised $7 million at a $43 million market cap. The company’s first product, IB-Stim, is intended for patients 11-18 years of age with functional abdominal pain associated with IBS. Neuraxis finished up 3%.
| 2 IPOs During the Week of August 7th, 2023 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 08/11 |
| VS Media (VSME) | |||||
| $10M | |||||
| Communication Services | |||||
| Univest Sec. | |||||
| Hong Kong-based provider of content creator-driven marketing services. | |||||
| Jinxin Technology (JXNT.RC) | |||||
| $5M | |||||
| Technology | |||||
| EF Hutton | |||||
| Provides a digital textbook and educational content platform for K-9 students in China. |
While most IPOs are biding their time through the August break, the SPAC market is churning out deals. The big news from this past week, Black Spade Acquisition (BSAQ) shareholders approved its merger with Vietnamese EV maker VinFast ( VFS ). The deal values VinFast at a whopping $27 billion, making it one of the largest SPAC mergers of all time . Aurora Acquisition (AURC) shareholders also approved the company’s proposed merger with mortgage lender Better . The deal, which values Better at $8 billion, was originally announced in mid-2021.
Week Ahead
Three IPOs are currently scheduled to list in the week ahead, although other small issuers may join the calendar during the week.
Tentatively scheduled for the week ahead, oncology biotech Adlai Nortye ( ANL ) plans to raise $72 million at an $896 million market cap. Operating through subsidiaries in the US and China, Adlai Nortye’s lead candidate (in-licensed from Novartis) is a kinase inhibitor designed to act against solid tumors that is currently undergoing a Phase 3 trial. The company expects to submit an NDA to the FDA seeking potential accelerated approval in the 2H24.
Sacks Parente Golf ( SPGC ) plans to raise $14 million at a $70 million market cap. Founded by experience golf equipment designers, Sacks Parente designs and sells golf putters, as well as shafts, grips, and head covers. Very small and highly unprofitable, the company opened a new manufacturing facility in Missouri in 2022, and intends to manufacture and assemble substantially all of its products in the US.
Nature Wood Group ( NWGL ), a Macau-based vertically-integrated forestry company with facilities in Peru, plans to raise $9 million at a $166 million market cap. The company produces a range of products, including logs, decking, flooring, and sawn timber. Nature Wood owns natural forest concessions and cutting rights for the exploitation of timbers in Peru, covering approximately 615,333 hectares.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Sacks Parente Golf ( SPGC ) Camarillo, CA | |||
| $14M $70M | |||
| $4 - $5 3,000,000 | |||
| Benchmark | |||
| Designs and manufactures premium golf putters. | |||
| Nature Wood Group ( NWGL ) | |||
| $9M $166M | |||
| $9 - $11 915,000 | |||
| Orientiert XYZ Securities Prime Num. Cap. | |||
| Macau-based forestry company with operations in Peru. | |||
| Adlai Nortye ( ANL ) Grand Cayman, Cayman Islands | |||
| $72M $896M | |||
| $22 - $26 3,000,000 | |||
| Cantor Fitz. CITIC CLSA | |||
| Phase 3 biotech developing immunotherapies for various cancers. |
Street research is expected for three companies in the week ahead, 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 8/10/2023, the Renaissance IPO Index was up 33.2% year-to-date, while the S&P 500 was up 17.5%. 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 7.8% year-to-date, while the ACWX was up 11.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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U.S. IPO Weekly Recap: IPO Market Sees Fitness, Liquor Marketing, And Medical Devices