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Three small issuers began trading in another quiet week for the IPO market, though just two met our tracking criteria. In the pipeline, two IPOs submitted initial filings.
The most notable news from the pipeline, AIG carve-out Corebridge Financial (CRBG) disclosed 1H22 financials this past Tuesday ahead of an estimated $3 billion IPO which could launch as early as next month.
Hong Kong-based GigaCloud Technology (GCT) priced at the high end to raise $36 million at a $493 million market cap. The company operates a B2B marketplace for furniture and other bulky goods, connecting manufacturers in Asia with resellers throughout the globe. GigaCloud Technology is profitable and rapidly growing, although higher fuel and freight costs have weighed on margins. GigaCloud Technlogy finished the week up 206%.
Chinese graphene product manufacturer Graphex Group (GRFX) upsized and priced at the midpoint to raise $12 million at a $79 million market cap. The company’s products are used primarily in lithium-ion batteries for electric vehicles, energy storage, and various industrial applications. Graphex Group finished the week trading flat.
While not included below, Innovative Eyewear (LUCY) priced its unit offering at the low end to raise $7 million at a $66 million market cap. The company sells Bluetooth connected eyewear, and finished the week down 36%.
| 2 IPOs During the Week of August 15th, 2022 | |||||
|---|---|---|---|---|---|
|
Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 08/19 |
| GigaCloud Technology (GCT) | $36M | $493M | 9% | +28% | +292% |
| Operates a wholesale marketplace for furniture and other bulky goods made in Asia. | |||||
| Graphex Group (GRFX) | $12M | $79M | 0% | -12% | +0% |
| Manufactures graphene products for lithium-ion batteries in China. | |||||
Two companies submitted initial filings this past week. Hong Kong-based ICT services provider Global Engine Group Holding (GLE) filed to raise $17 million on the Nasdaq, and medical device developer EMulate Therapeutics (EMTX) filed to raise $15 million.
| 2 Filings During the Week of August 15th, 2022 | |||
|---|---|---|---|
|
Issuer Business |
Deal Size |
Sector |
Lead Underwriter |
| EMulate Therapeutics (EMTX) | $15M | Health Care | EF Hutton |
| Developing a non-invasive medical device that uses radio frequency energy for various indications. | |||
| Global Engine Group (GLE) | $17M | Communication Services | Univest Sec. |
| Hong Kong-based ICT solutions provider. | |||
Two small deals are scheduled to price in the week ahead, only one of which is large enough to be included in our IPO stats. More small issuers may join the calendar during the week.
Starbox Group Holdings (STBX) plans to raise $23 million at a $203 million market cap. The company is building a fintech ecosystem targeting micro, small, and medium enterprises in Malaysia, with cash rebates at the foundation. As of 3/31/22, its GETBATS website and mobile app had roughly 614 thousand members and nearly 800 merchants. The company is profitable, but its revenue stream has been highly unstable.
Another Malaysia-focused payments app recently IPO’d in the US: Treasure Global (TGL) went public earlier this month and closed Friday 42% above offer (-68% from first-day close).
While not included below, ASX-listed Mobilicom (MOB) plans to raise $12 million at a $20 million market cap in its Nasdaq unit offering.
| U.S. IPO Calendar | |||
|---|---|---|---|
|
Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
|
Starbox (STBX) Kuala Lumpur, Malaysia |
$23M $203M |
$4-$5 5,000,000 |
Network 1 |
| Provides a payments app in Malaysia that offers cash rebates. | |||
Street research is expected for two companies.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/18/2022, the Renaissance IPO Index was down 40.0% year-to-date, while the S&P 500 was down 9.2%. 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 31.6% year-to-date, while the ACWX was down 14.3%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and EQT.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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