Mikko Lemola
Six small deals priced this past week, though only three met the criteria for our 2022 IPO stats. Pipeline activity picked up with three new IPO filings, including a biotech that plans to raise $150 million, as well as amendments from some notable issuers on file.
Beijing-based Jianzhi Education Technology Group (JZ) priced at the low end to raise $25 million at a $303 million market cap. Jianzhi Education provides digital educational content to higher education institutions and libraries in China. Profitable with steady growth, the company’s content library comprised more than 30,000 online videos and video courses as of 12/31/21. Soaring more than 3,100% intraday, Jianzhi Education finished up 275%.
Starbox Group Holdings (STBX) priced at the low end to raise $20 million at a $180 million market cap. Starbox is building a fintech ecosystem targeting micro, small, and medium enterprises in Malaysia, with cash rebates at the foundation. The company is profitable, but its revenue stream has been highly unstable. After jumping 285% on its first day, Starbox finished up 33%.
Neurodevelopment biotech PaxMedica (PXMD) priced slightly below the midpoint to raise $8 million at a $76 million market cap. In February 2021, the company announced positive topline data from its Phase 2 dose-ranging trial evaluating lead candidate PAX-101 for the treatment of the core symptoms of autism spectrum disorder (ASD). PaxMedica finished down 6%.
While not included below, three nano-caps completed unit offerings. Online store operator Jeffs’ Brands (JFBR) raised $15 million, website manager Onfolio Holdings (ONFO) raised $14 million, and ASX-listed Mobilicom (MOB) raised $12 million.
| 3 IPOs During the Week of August 22nd, 2022 | |||||
|---|---|---|---|---|---|
|
Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 08/26 |
| Jianzhi Education Tech (JZ) | $25M | $303M | -17% | +275% | +275% |
| Provides an online learning platform and educational content in China. | |||||
| Starbox (STBX) | $20M | $180M | -11% | +285% | +33% |
| Provides a payments app in Malaysia that offers cash rebates. | |||||
| PaxMedica (PXMD) | $8M | $76M | -13% | -6% | -6% |
| Phase 2 biotech developing therapies for neurodevelopmental disorders. | |||||
Three companies submitted initial filings this past week, led by Third Harmonic Bio (THRD), which plans to raise $150 million. The biotech plans to initiate a Phase 1b trial of its sole candidate in the second half of the year, targeting inflammatory skin condition chronic inducible urticaria. The week’s other filings came from Swiss-listed biopharma Relief Therapeutics (RLFT) and Malaysia-based bunkering facilitator CBL International (BANL). One SPAC, Translational Development (TDACU), also filed.
The pipeline also saw updates from girl’s fashion retailer Claire’s (CLRS) and RIA services platform Dynasty Financial Partners (DSTY), both of which are on file to raise $100 million.
| 4 Filings During the Week of August 22nd, 2022 | |||
|---|---|---|---|
|
Issuer Business |
Deal Size |
Sector |
Lead Underwriter |
| CBL International (BANL) | $17M | Energy | Pacific Century Securities |
| Provides fueling logistic services to container ships in the Asia Pacific region. | |||
| Translational Development (TDACU) | $150M | SPAC | ThinkEquity |
| Blank check company backed by Stone Capital Partners targeting life sciences and biotech in North America and Europe. | |||
| Relief Therapeutics (RLFT) | $20M | Health Care | |
| Swiss biopharma commercializing a portfolio of drugs targeting rare diseases. | |||
| Third Harmonic Bio (THRD) | $150M | Health Care | Morgan Stanley |
| Phase 1 biotech developing a therapy for allergic and inflammatory diseases. | |||
As August comes to an end, the US IPO market looks to close out the month with three small deals, though only one meets our tracking criteria. Other small deals may also join the calendar during the week.
Hemp cigarette manufacturer Hempacco (HPCO) plans to raise $6 million at a $138 million market cap. The company’s products are sold in over 200 retail locations in San Diego, and it plans to refurbish a fleet of roughly 600 kiosk vending machines to expand distribution. Hempacco has a limited operating history and expects to remain unprofitable in the near term.
Although not listed below, two unit offerings may price in the week ahead. Wearable Devices (WLDS), which is developing non-invasive neural input technology for consumer electronics, plans to raise $22 million at a $99 million market cap. Lung cancer diagnostics developer bioAffinity Technologies (BIAF) plans to raise $8 million at a $54 million market cap.
| U.S. IPO Calendar | |||
|---|---|---|---|
|
Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
|
Hempacco (HPCO) San Diego, CA |
$6M $138M |
$6 1,000,000 |
Boustead |
| Manufactures nicotine-free cigarettes made from hemp. | |||
Lock-ups will be expiring for one company in the week ahead, and Street research is expected for one as well.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/25/2022, the Renaissance IPO Index was down 40.6% year-to-date, while the S&P 500 was down 11.0%. 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 33.7% year-to-date, while the ACWX was down 15.8%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou (OTCPK:KUASF) and EQT.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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