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U.S. IPO Weekly Recap: The First Major U.S. IPO In Over A Month Joins The Calendar

Sep 24, 2022

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Just three small deals began trading in another quiet week for the IPO market, only one of which was large enough to meet our coverage criteria. They were joined by one SPAC offering. Pipeline activity picked up slightly as four small IPOs and three SPACs submitted initial filings.

The major news of the week came on Friday, when minerals exploration company Ivanhoe Electric (IE) launched its $174 million IPO. Ivanhoe would be the first major US IPO in over a month.

India-based Lytus Technologies (LYT) priced at the low end to raise $12 million at a $175 million market cap. The company's content streaming and telecasting services reach over 8 million active users, and the company also offers telemedicine services through partnerships with local health centers. After popping 258%, Lytus continued to climb in the aftermarket, finishing the week up 389%.

Feutune Light Acquisition (FLFVU), a blank check company led by a US Tiger Securities executive, raised $85 million to target businesses with strong management, growth potential, and a competitive advantage, among other characteristics.

While not included below, medical device developer HeartSciences (HSCS) raised $6 million at a $41 million market cap in a unit offering, and OTC-listed Connexa (CNXA) raised $4 million at a $57 million market cap in a Nasdaq uplisting. Both finished the week below issue.

Four companies submitted initial filings this past week. Surgical adhesive developer OptMed (OMED) and Malaysian payments app Starbox (STBX) both filed to raise $23 million, freight brokerage LeeWay (LWS) filed to raise $17 million, and lifestyle brand MusclePharm (OTCPK:MSLP) filed to raise $10 million.

7 Filings During the Week of June 13th, 2022 Issuer Business Deal Size Sector Lead Underwriter MusclePharm (MSLP) $10M Consumer Staples Roth Cap. Makes branded sports nutrition products and energy beverages. Dorchester Capital Acq. (DSPK.U) $150M SPAC EarlyBird Blank check company targeting the US onshore oil and gas sector. OptMed (OMED) $23M Health Care EF Hutton Commercializing topical tissue adhesives used in surgery. Starbox (STBX) $23M Technology Network 1 Provides a payments app in Malaysia that offers cash rebates. Pono Capital Two (PONBU.RC) $100M SPAC EF Hutton Blank check company targeting the disruptive technology sector in Japan. Forest Acquisition (FORAU.RC) $66M SPAC Ladenburg Blank check company targeting middle-market growth businesses. LeeWay (LWS) $17M Industrials ThinkEquity Provides freight brokerage and logistics services.

Week Ahead

After over a month with no major US IPOs, mineral exploration company Ivanhoe Electric is expected to break the dry spell in the week ahead.

Led by mining billionaire Robert Friedland, Ivanhoe Electric plans to raise $174 million at a $1.2 billion market cap in the short holiday week. Headquartered in Vancouver, the company is focused on developing mines from mineral deposits principally located in the US. Its mining projects are still in the exploration stage and are not expected to generate revenue for the foreseeable future. However, the company has generated revenue from ownership of an oil and gas-focused data processing firm and a battery developer.

U.S. IPO Calendar Issuer Business Deal Size Market Cap Price Range Shares Filed Top Bookrunners Ivanhoe Electric (IE)Vancouver, Canada $174M$1,166M $11.75 - $12.5014,388,000 BMO Jefferies Owns and develops US copper, gold, and other mineral and metal mining projects.

There are no Street research or lock-up expirations expected for the week ahead.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/16/2022, the Renaissance IPO Index was down 52.3% year-to-date, while the SP 500 was down 22.5%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and CrowdStrike Holdings (CRWD). The Renaissance International IPO Index was down 33.1% year-to-date, while the ACWX was down 18.1%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Volvo Car Group (OTCPK:VOLAF) and Kuaishou (OTCPK:KUASF).

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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Renaissance Capital provides pre-IPO research to institutional investors and investment banks. The Firm manages two IPO-focused funds: The Renaissance IPO ETF (NYSE: IPO) and the Renaissance International IPO ETF (NYSE: IPOS). Individual investors can get a free overview of the IPO market on www.renaissancecapital.com, and try a free trial of our premium platform, IPO Pro (ipopro.renaissancecapital.com). Through Renaissance Capital’s pre-IPO research service, institutional investors get an independent opinion, in-depth fundamental analysis, and customizable financial models on all IPOs.


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