Two IPOs began trading in another quiet week for the IPO market. In the pipeline, two IPOs and one SPAC submitted initial filings.
Chinese e-commerce play WeTrade Group (WETG) priced at the low end to raise $40 million at a $780 million market cap. WeTrade operates a membership-based platform where it provides technical services and solutions. While the company has demonstrated growth, it has a small customer base and is operating as a going concern. WeTrade popped just over 400% on its first day and finished the week up 378%.
Holdover Virax Biolabs (VRAX) raised $7 million at a $57 million market cap. Operating in the UK and Hong Kong, Virax Biolabs provides a portfolio of diagnostics test kits and med-tech and PPE products for viral diseases. The company has a limited operating history and is highly unprofitable. Virax soared 264% on its first day and finished the week up 107%.
| 2 IPOs During the Week of July 18th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 07/22 |
| WeTrade Group (WETG) | $40M | $780M | -20% | +404% | +378% |
| Operates a membership-based platform for e-commerce services in China. | |||||
| Virax Biolabs (VRAX) | $7M | $57M | 0% | +264% | +107% |
| UK-based provider of diagnostic tests and PPE for viral diseases. | |||||
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Two companies submitted initial filings this past week. Solar energy company SolarMax Technology (SMXT) filed to raise $30 million in its third attempt to go public. Republic Power Group (RPGL), which provides software development services in Southeast Asia, filed to raise $16 million.
The sole SPAC to submit an initial filing, Whale Point Acquisition (WPAU) filed to raise $150 million to target fintech.
| 3 Filings During the Week of July 18th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Republic Power Group (RPGL) | $16M | Technology | Univest Sec. |
| Provides software development services in Southeast Asia. | |||
| Whale Point Acquisition (WPAU) | $150M | SPAC | BTIG |
| Blank check company targeting the fintech sector. | |||
| SolarMax Technology (SMXT) | $30M | Utilities | ViewTrade |
| Sells solar energy systems in the US and works on solar farm projects in China. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 7/21/2022, the Renaissance IPO Index was down 41.6% year-to-date, while the S&P 500 was down 15.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO Index was down 30.4% year-to-date, while the ACWX was down 17.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and EQT.
