Two deals priced this week, but only one met the criteria to be included in our 2022 IPO stats. Four new filings, including two offering units, also trickled into the pipeline.
Hong Kong-based Magic Empire Global (MEGL) completed a US offering at its proposed price of $4 to raise $20 million at an $80 million market cap. Doing business as Giraffe Capital, Magic Empire Global principally engages in the provision of corporate finance advisory services and underwriting services. Led by an executive team with extensive experience in investment banking and transaction advisory, Magic Empire Global has a relatively high customer concentration. The company’s stock skyrocketed on Friday and finished up 2325%.
Bruush Oral Care (BRSH) priced its upsized unit offering at the low end to raise $16 million at a $31 million market cap. The oral hygiene e-commerce company currently has a product portfolio consisting of a sonic-powered electric toothbrush kit and brush head refills with plans to launch several new subscription-based consumable oral care products, including toothpaste, mouthwash, dental floss, a whitening pen, as well as an electric toothbrush for kids. Bruush is unprofitable and has a limited operating history. However, revenue increased substantially in the 9mo21. Bruush finished the week down 43% from its IPO price.
Two SPACs went public this past week, led by Pono Capital Two (PTWOU), which raised $100 million.
|3 IPOs During the Week of August 1st, 2022|
|Issuer Business||Deal Size||Market Cap at IPO||Price vs. Midpoint||First Day Return||Return at 08/05|
|Magic Empire Global||$20M||$80M||-11%||+2325%||+2325%|
|Hong Kong-based provider of financial advisory and underwriting services.|
|Blank check company targeting the electric vehicle industry in Asia and Europe.|
|Pono Capital Two||$100M||$131M||0%||n/a||+0%|
|Blank check company targeting the disruptive technology sector in Japan.|
Two companies made initial filings on Friday afternoon. Golf putter manufacturer Sacks Parente Golf (SPGC) filed for a $15 million IPO. The company was joined by YanGuFang International Group (YGF), a producer of oat and grain products in China, which filed to raise up to $23 million.
While not counted below, Israel-based Laminera Flow Optimization (LMFO.RC) and MDNA Life Sciences (MDLS) filed to raise up to $17 million and $12 million in unit offerings, respectively.
|2 Filings During the Week of August 1st, 2022|
|Sacks Parente Golf||$15M||Consumer Discretionary||Benchmark|
|Designs and manufactures premium golf putters.|
|YanGuFang||$23M||Consumer Staples||EF Hutton|
|Produces oat and grain products in China.|
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/4/2022, the Renaissance IPO Index was down 38.5% year-to-date, while the S&P 500 was down 12.1%. 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 30.2% year-to-date, while the ACWX was down 15.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and EQT.
The IPO market remains quiet during the annual August slowdown with just one IPO scheduled to price in the week ahead. Other small deals may also join the calendar during the week.
Electric boat developer Forza X1 (FRZA) plans to raise $15 million at a $50 million market cap. Spun out of Twin Vee PowerCats, the company aims to manufacture and sell affordable electric boats for recreational sport use. Forza X1 expects to start producing and selling their initial FX1 dual console and FX1 center console models in the 2Q23.
We may see other small deals manage to price offerings as well, such as Onfolio (ONFO), bioAffinity Technologies (BIAF), and Loop Media (LPTV).
|U.S. IPO Calendar|
|Issuer Business||Deal Size Market Cap||Price Range Shares Filed||Top Bookrunners|
|Forza X1Fort Pierce, FL||$15M$50M||$53,000,000||ThinkEquity|
|Fully electric boat developer being spun out of Twin Vee PowerCats.|
Lock-up periods will be expiring for up to two companies in the week ahead.
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 8/4/22, the Renaissance IPO Index was down -38.5% year-to-date, while the S&P 500 was down -12.1%. 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 -30.2% year-to-date, while the ACWX was down -15.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Zhejiang Kuaishou Information Technology and EQT.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by