Consumer services

U.S. IPO Weekly Recap: Second Quarter Begins Without an IPO

hanibaram/iStock via Getty Images

There was no IPO in the first week of April, although a SPAC was rated. Four IP offices submitted initial filings.

The only deal of the week was Acquisition of Denali Capital (DECAU), which raised $75 million. Led by the CEO of US Tiger Securities, SPAC plans to target the technology, hospitality or consumer services sectors.

1 IPO during the week of April 4, 2022

Transmitter

Business

Deal

Cut

Market

Cap

to the IPO

Price vs.

Middle

First

Day

To return to

To return to

to

08/04

Denali Capital Acq. (DECAU) $75 million $99 million 0% +0% +0%
Fourth blank check company formed by the CEO of US Tiger Securities.

Three IP offices submitted initial filings. Norovirus vaccine developer Hille Vax (HLVX) has applied for $100 million in funding. Biotechnology of eye diseases Organic Belite (BLTE) applied for $46 million funding, Inflammatory Disease Biotechnology intrinsic medicine (INRX) applied for $29 million in funding and projection screen manufacturer Strong World Entertainment (SGE) applied for $16 million in funding.

4 deposits during the week of April 4, 2022

Transmitter

Business

Deal

Cut

Sector

Carry out

Subscriber

Intrinsic Medicine (INRX) $29M Health care Spartan titles
Preclinical biotechnology developing HiMO therapies for ACS and inflammatory disorders.
Loud Entertainment (SGE) $16M Communication Services Think Equity
Manufacturer of high-end projection screens from Ballantyne Strong.
Hille Vax (HLVX) $100 million Health care JP Morgan
Phase 2 biotech developing a new norovirus vaccine under license from Takeda.
Organic Belite (BLTE) $46 million Health care Reference
Phase 3 biotech developing new therapies for retinal degeneration and metabolic diseases.

Activity in the IPO market is expected to pick up in the coming week. Three IPOs are planned to fix the price, led by the LNG service provider excel energy (EE), which is expected to be the first IPO of more than $100 million in the United States in more than two months.

excel energy plans to raise $360 million at a market cap of $2.4 billion. Founded and owned by oil magnate George Kaiser, the company has a fleet of floating storage and regasification units, which are used to regasify liquefied natural gas (LNG) for power generation and other applications.

Excelerate has benefited from accelerating war-related LNG demand growth in Ukraine and currently has three projects in development. However, it depends on a few customers, mainly government entities in emerging markets.

OTC listed Blockchain applied (OTCPK:APLD), which builds data centers leased to crypto miners, plans to raise $60 million at a market cap of $1.8 billion. The company’s first facility was built in February 2022, and it plans to bring a total of 800 MW online by 2023. Applied Blockchain is at an early stage with a limited operating history.

Based in Singapore Engineering Group (GNS) plans to raise $18 million at a market cap of $118 million. Genius Group is an entrepreneurial education technology company with approximately 1.9 million students in 191 countries spanning all age groups. Unprofitable with accelerated growth in 1H21, the company originally planned to raise $40m before cutting its deal size in February.

U.S. IPO Schedule

Transmitter

Business

Transaction size

Market capitalization

Price scale

Shares deposited

High

Bookkeepers

Genius Group (GNS)

Singapore

$18M

$118 million

$5 – $6

3,272,727

Boustead
Provides online and in-person training services for entrepreneurs.

Applied Blockchain (OTCPK:APLD)

Dallas, TX

$60 million

$1,751M

$16.54 – $20.54

3,236,245

B.Riley

Needham

Build data centers leased to crypto miners.

Excel Energy (EE)

The Woods, TX

$360 million

$2,383M

$21 – $24

16,000,000

Barclays

JP Morgan

Operates LNG storage and regasification infrastructure in emerging markets.

Street search is for one business and blackout periods will expire for up to five businesses.

IPO market overview

The Renaissance IPO Indices are market capitalization weighted baskets of newly public companies. As of 07/04/2022, the Renaissance IPO index was down 27.8% year-to-date, while the S&P 500 was down 5.2%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW).

The Renaissance International IPO Index is down 23.8% year-to-date, while the ACWX is down 7.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK: VOLAF) and Kuaishou (OTCPK: KUASF).

Original post

Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.