The US IPO market is starting to heat up, and there's a new exchange vying for listings. The CBOE BZX Exchange (formerly Bats) has captured one nano-cap to date, though a few more small companies in the pipeline are going for the new option.
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Known as the country's largest options exchange, CBOE Global Markets (BZX: CBOE) entered the equities game in 2017 with its $3.4 billion acquisition of Bats Global Markets, which IPO'd on its own exchange less than a year earlier. The BZX is now one of four US equities exchanges operated by CBOE. Until recently, new listings on the exchange were essentially limited to ETFs and similar products.
The BZX's emergence as a viable venue comes amid an uptick in small IPOs in recent years. Its initial requirements are nearly identical to the Nasdaq's lower tiers, making it a feasible option for micro-caps, though its minimum listing price requirement ($4) is not quite as low as the NYSE American's ($2-$3).
This past December, SinglePoint (SING) stated that it was the inaugural US company to list on the CBOE BZX, upon its uplisting from the OTC. A provider of integrated solar energy solutions and air purification products, SinglePoint raised $4 million at a $31 million market cap; it last closed down -91% from offer.
Note: Because it raised less than $5 million and had a market cap of less than $50 million at pricing, SinglePoint is excluded from Renaissance Capital's IPO stats.
A few more small issuers in the pipeline plan to list on the BZX, including some that have scrapped Nasdaq listings in favor of the new venue.
Electric car-sharing platform EV Mobility (EVMO) filed this past October for an IPO on the BZX, planning to raise $9 million at a $59 million market cap. The company provides EVs on demand as an amenity to luxury hotels, multi-family luxury apartment buildings, and commercial buildings through its mobile app. EV Mobility is very small, with less than $1 million in LTM revenue, and also highly unprofitable.
In addition to EV Mobility, two other companies in the pipeline are pursuing listings on the BZX after initially planning to list on the Nasdaq. Bermuda-based video game creator RoyaLand (RLND) disclosed this past November that it would opt for a BZX IPO. It plans to raise $7 million at an $87 million market cap. China-based Harden Technologies (HAHA) is the most recent issuer to switch its proposed listing exchange to the BZX, disclosing the change in an amendment earlier this month. The recycling equipment manufacturer most recently filed to raise $6 million at a $66 million market cap.