Only three small trades started trading in another quiet week for the IPO market, only one of which was large enough to meet our hedging criteria. They were joined by a SPAC offer. Pipeline activity has picked up slightly four small IP offices and three SPACs filed initial filings.
The main news of the week came on Friday, when the mining exploration company Ivanhoe Electric (IE) has launched its $174 million IPO. Ivanhoe would be the first major U.S. IPO in over a month.
Based in India Lytus Technologies (LYT) at a low price to raise $12 million at a market cap of $175 million. The company’s content and broadcast services reach more than 8 million active users, and the company also offers telemedicine services through partnerships with local health centers. After climbing 258%, Lytus continued to climb in the secondary market, ending the week up 389%.
Acquiring Feutune Light (FLFVU), a blank check company led by a US executive from Tiger Securities, has raised $85 million to target companies with strong management, growth potential and competitive advantage, among other characteristics.
Although not included below, the medical device developer HeartSciences (HSCS) raised $6 million at a market cap of $41 million in a unit offering, and publicly listed Connected (CNXA) raised $4 million at a market cap of $57 million in a Nasdaq listing. The two ended the week below.
Four companies filed initial filings last week. Surgical adhesive developer OptMed (OMED) and Malaysian payment app star box (STBX) both filed for $23 million in financing, freight brokerage Lee Way (LWS) filed to raise $17 million and a lifestyle brand MusclePharm (OTCPK: MSLP) has applied for $10 million in funding.
|7 deposits during the week of June 13, 2022|
|Transmitter Company||Transaction size||Sector||Primary Subscriber|
|MusclePharm (MSLP)||$10M||Basic consumption||Roth beanie.|
|Manufactures branded sports nutrition products and energy drinks.|
|Dorchester Capital Acq. (DSPK.U)||$150 million||after-sales service||Up early|
|Blank check company targeting the US onshore oil and gas sector.|
|OptMed (OMED)||$23M||Health care||EF Hutton|
|Commercialization of topical tissue adhesives used in surgery.|
|Star box (STBX)||$23M||Technology||Network 1|
|Provides a payment app in Malaysia that offers cash back.|
|Pono Capital Two (PONBU.RC)||$100 million||after-sales service||EF Hutton|
|Blank check company targeting the disruptive technology sector in Japan.|
|Forest acquisition (FORAU.RC)||$66 million||after-sales service||Ladenburg|
|Blank check company targeting middle market growth companies.|
|Lee Way (LWS)||$17M||Industrial||Think Equity|
|Provides freight brokerage and logistics services.|
After more than a month without a major U.S. IPO, mining exploration company Ivanhoe Electric is expected to break the dry spell in the coming week.
Led by mining billionaire Robert Friedland, Ivanhoe Electric plans to raise $174 million at a market cap of $1.2 billion during the short holiday week. Based in Vancouver, the company is focused on developing mines from mineral deposits primarily located in the United States. Its mining projects are still at the exploration stage and are not expected to generate revenue in the foreseeable future. However, the company has generated revenue through ownership of an oil and gas-focused data processing company and battery developer.
|U.S. IPO Schedule|
|Issuer company||Trade Size Market Cap||Price Range Actions Filed||Best Bookkeepers|
|Ivanhoe Electric (IE)Vancouver, Canada||$174 million $1,166 million||$11.75 – $12.5014,388,000||BMO Jefferies|
|Owns and develops copper, gold and other mineral and metal mining projects in the United States.|
No street searches or lockdown expirations are scheduled for the coming week.
IPO market overview
The Renaissance IPO Indices are market capitalization weighted baskets of newly public companies. As of 6/16/2022, the Renaissance IPO Index was down 52.3% year-to-date, while the S&P 500 was down 22.5%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and CrowdStrike Holdings (CRWD). The Renaissance International IPO Index is down 33.1% year-to-date, while the ACWX is down 18.1%. Renaissance Capital’s International IPO (IPOS) ETF tracks the index, and top ETF holdings include Volvo Car Group (OTCPK: VOLAF) and Kuaishou (OTCPK: KUASF).
Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.