The IPO market’s short week ended up being quieter than expected. Just one small IPO and one SPAC began trading, while the only major deal on the calendar delayed its pricing. Five IPOs and one SPAC submitted initial filings.
Mining billionaire Robert Friedland’s Ivanhoe Electric (IE) delayed its IPO until next week, planning to raise $174 million at a $1.2 billion market cap. The company’s mining projects are still in the exploration stage and are not expected to generate revenue for the foreseeable future.
China-based Golden Sun Education (GSUN) priced at the low end to raise $18 million at a $70 million market cap. The company provides Spanish tutorial services in China, with several facilities in the Yangtze River Delta. After soaring 308% on it first day, Golden Sun finished the week up 395%.
|6 Filings During the Week of June 20th, 2022|
|Issuer Business||Deal Size||Sector||Lead Underwriter|
|EOM Pharmaceuticals (EOM)||$25M||Health Care||EF Hutton|
|Developing in-licensed therapies for inflammatory and ocular diseases.|
|Genelux (GNLX)||$30M||Health Care||Benchmark|
|Phase 2 biotech developing oncolytic viral immunotherapies for solid tumors.|
|China-based fabless designer of ASIC chips for blockchain applications.|
|Biostage (OTC:BSTG)||$12M||Health Care||Newbridge|
|Developing an esophageal implant using stem cell technology.|
|Ocean Capital Acq. (OCCAU.RC)||$60M||SPAC||Ladenburg|
|Blank check company led by the CEO of Hong Kong’s Hermitage Capital targeting established businesses.|
|WANG & LEE GROUP (WLGS)||$16M||Industrials||Boustead|
|Provides design and contracting services to the construction industry in China.|
This past week, we also released our 2Q 2022 US IPO Market Review, which provides detailed analysis of activity during the past quarter and outlook going forward.
After delaying its IPO, Ivanhoe Electric is the only major offering currently scheduled to price in the week ahead. SPACs and micro-cap issuers may join the IPO calendar as well, with website owner Onfolio (ONFO) potentially raising $9 million.
Ivanhoe Electric is now expected to price as early as Monday. It did not disclose a reason for the delay, and a new SEC filing on Friday provided no material update. The company plans to raise $174 million at a $1.2 billion market cap. Led by mining billionaire Robert Friedland, the exploration-stage company is focused on developing mines from metal and mineral deposits, primarily in the US. Ivanhoe Electric’s mining projects are not expected to generate meaningful revenue for the foreseeable future.
|U.S. IPO Calendar|
|Issuer Business||Deal Size Market Cap||Price Range Shares Filed||Top Bookrunners|
|Ivanhoe Electric (IE)Vancouver, Canada||$174M$1,166M||$11.75 – $12.5014,388,000||BMO Jefferies|
|Owns and develops US copper, gold, and other mineral and metal mining projects.|
Street research is expected for one company, and lock-up periods will be expiring for up to two companies.
This past week, we released our 2Q 2022 US IPO Market Review, which provides detailed analysis of activity during the past quarter and outlook going forward.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/23/2022, the Renaissance IPO Index was down 45.0% year-to-date, while the S&P 500 was down 19.8%. 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 31.1% year-to-date, while the ACWX was down 18.7%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou (OTCPK:KUASF) and Nongfu Spring (OTCPK:NNFSF).
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.