One NYSE American uplisting and one SPAC began trading this past week. Four IPOs joined the IPO pipeline, led by large biotech Prime Medicine (PRME).
Several other small deals had been targeting debuts this past week but did not get done. While potentially unrelated, the delays come in the wake of reports that the Nasdaq would be stepping up its scrutiny of small IPOs amid the rise of volatile pop-and-drop trading.
Formerly listed on the OTC, Loop Media (LPTV) priced at the midpoint to raise $12 million at a $298 million market cap. The company provides proprietary content streaming boxes to bars, hotels, and stores, through which it generates ad revenues. Fast growing and unprofitable, Loop has licenses with three major music labels. Loop Media finished down 5%.
SPAC Global Star Acquisition (GLSTU) raised $80 million, with plans to target fintech and proptech businesses. The company plans to initially prioritize the Nordic and Asia Pacific regions.
| 2 IPOs During the Week of September 19th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 09/23 |
| Global Star Acquisition (GLSTU) | $80M | $106M | 0% | +0% | +0% |
| Blank check company focused on fintech and proptech in the Nordic and APAC regions. | |||||
| Loop Media (LPTV) | $12M | $298M | 0% | -1% | -5% |
| Provides ad-supported TV boxes that stream short videos at retail locations. | |||||
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| 4 Filings During the Week of September 19th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Prime Medicine (PRME) | $100M | Health Care | JP Morgan |
| Preclinical biotech developing novel gene editing therapies for various diseases. | |||
| Ultimax Digital (NFTX) | $11M | Technology | WestPark Capital |
| Operates a video game development and publishing studio and an NFT marketplace. | |||
| Cadrenal Therapeutics (CVKD) | $10M | Health Care | Boustead |
| Phase 3-ready biotech developing an acquired therapy for thrombosis and AFib. | |||
| Melt Pharmaceuticals (MELT) | $15M | Health Care | Aegis Cap. |
| Phase 2 biotech developing non-opioid, non-IV sedatives and anesthesia. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 9/22/2022, the Renaissance IPO Index was down 49.9% year-to-date, while the S&P 500 was down 20.2%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 40.0% year-to-date, while the ACWX was down 22.9%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Kuaishou and Nongfu Spring.
