U.S. IPO Weekly Recap: E-Commerce And Diagnostics Debut In A 2 IPO Week

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IPO Initial Public Offering

Mikko Lemola

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.

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.

Two small deals are scheduled to price in the week ahead as the IPO market stays on track to post its slowest year in over a decade.

Mobile Global Esports (MGAM) plans to raise $17 million at an $82 million market cap. Operating as MOGO, the company is launching a platform initially for esports competitions played on mobile devices by university teams and players representing universities located in India and South Asia. MOGO currently does not have significant revenues or operations.

Immunotherapy biotech MAIA Biotechnology (MAIA) plans to raise $10 million at an $83 million market cap. MAIA’s lead candidate is expected to enter Phase 2 human trials in Australia and Europe in 2022 for NSCLC, and the company plans to seek accelerated approval in the US for treatment of advanced NSCLC in late 2024.

U.S. IPO Calendar

Issuer

Business

Deal Size

Market Cap

Price Range

Shares Filed

Top

Bookrunners

Mobile Global Esports (MGAM)

San Clemente, CA

$17M

$82M

$4-$5

3,800,000

WestPark Capital
Developing an esports platform for university competitions in India and South Asia.

MAIA Biotechnology (MAIA)

Chicago, IL

$10M

$83M

$5-$7

1,666,667

ThinkEquity
Phase 2 biotech developing targeted immunotherapies for cancer.

Street research is expected for one company, and lock-ups will be expiring for one company.

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 (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 (IPOS) tracks the index, and top ETF holdings include Kuaishou (OTCPK:KUASF) and EQT.

Original Post

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



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