Eight issuers began trading this past week, six of which are eligible for inclusion in our IPO stats. All eight are based outside of the US, and most of the deals downsized at pricing. Two blank check IPOs also debuted. Three small IPOs and one SPAC submitted initial filings.
Oslo-listed maritime bulk carrier Himalaya Shipping (HSHP) (OTCPK:HSPPF) raised $45 million at a $231 million market cap. The company is in the process of acquiring 12 dry bulk vessels, which it plans to use for the import of commodities from Brazil and Australia to China. Himalaya Shipping finished flat.
Chinese IT firm Hitek Global (HKIT) downsized to raise $16 million at a $71 million market cap. The company serves SMEs and large businesses in China, selling software and hardware, as well as providing anti-counterfeiting tax control systems and IT services. Hitek Global finished up 11%.
Japanese real estate developer SYLA Technologies (SYT) raised $15 million at a $243 million market cap. Through its four subsidiaries, the company operates an online real estate platform, constructs and sells solar power plants, manufactures and sells crypto mining machines, operates an asset management platform, and manages real estate. SYLA Technologies finished down 9%.
Chinese contract logistics services provider Shengfeng Development (SFWL) downsized and priced at the low end to raise $10 million at a $330 million market cap. The company’s services are focused on managing warehousing and transportation systems, and it grew total transportation volume by 19% in 1H22. Shengfeng Development finished up 1%.
Chinese oat and grain products producer YanGuFang International Group (YGF) downsized and priced at the low end to raise $8 million at a $128 million market cap. The company’s portfolio includes oatmeal, oat flour, oat bran, and oat nutrient and health series products. Profitable and growing, YanGuFang operates in various Chinese provinces and expanded to the US in October 2022. YanGuFang international Group finished down 3%.
Chinese wheelchair manufacturer Jin Medical International (ZJYL) (JNMI) downsized and priced at the low end to raise $8 million at a $62 million market cap. The company designs and manufactures wheelchairs, predominantly to clients in Japan and China. Jin Medical International finished down 7%.
While not included below, China-based bakery operator Chanson International (CHSN) downsized and priced at the low end to raise $14 million at a market cap of just under $50 million, and Chinese steel manufacturer Hongli Group (HLP) downsized and priced at the low end to raise $8 million at a $48 million market cap.
Two SPACs priced this week, both of which raised $60 million: TMT Acquisition (TMTCU) plans to target businesses in Asia, and Trailblazer Merger I (TBMCU) plans to target the US technology industry.
|8 IPOs During the Week of March 27th, 2023|
|IssuerBusiness||DealSize||Market Capat IPO||Price vs.Midpoint||First DayReturn||Returnat 03/31|
|Hitek Global (HKIT)||$16M||$71M||0%||+11%||+11%|
|Provides IT consulting and solutions services in China.|
|TMT Acquisition (TMTCU)||$60M||$79M||0%||+2%||+2%|
|Blank check company targeting businesses in Asia.|
|Trailblazer Merger I (TBMCU)||$60M||$79M||0%||+1%||+1%|
|Blank check company focusing on the US technology industry.|
|Shengfeng Development (SFWL)||$10M||$330M||-11%||+1%||+1%|
|Chinese contract logistics services provider.|
|Himalaya Shipping (HSHP)||$45M||$231M||0%||n/a||+0%|
|Acquiring a fleet of vessels for maritime shipping of bulk dry goods.|
|Chinese producer of oat and grain products.|
|Jin Medical International (ZJYL)||$8M||$62M||45%||-1%||-7%|
|Chinese wheelchair manufacturer.|
|SYLA Technologies (SYT)||$15M||$243M||0%||-9%||-9%|
|Japanese real estate developer expanding into fintech, solar, and crypto.|
Six IPOs and one SPAC submitted initial filings this past week. Permian Basin energy infrastructure operator Kodiak Gas Services (KGS) filed to raise $100 million. Chinese marketing services provider Xuhang Holdings (SUNH) filed to raise $92 million. Chinese education software provider NetClass Technology (NTCL) filed to raise $17 million at an $84 million market cap. Chinese debt collector GoodFaith Technology (GFCX) filed to raise $15 million at a $115 million market cap. Osteosarcoma-focused biotech OS Therapies (OSTX) filed to raise $10 million at a $116 million market cap. Skin care product maker CoLabs Int’l (CLLB) filed to raise $6 million at a $201 million market cap.
Ares Acquisition II (AACT.U), the second SPAC formed by Ares Management (ARES), filed to raise $400 million to target businesses in North America, Europe, or Asia. Ares Acquisition II is the largest new blank check filing since December 2021.
|7 Filings During the Week of March 27th, 2023|
|GoodFaith Technology (GFCX)||$15M||Financials||A.G.P.|
|Provides delinquent debt collection and related services for credit loans in China.|
|Kodiak Gas Services (KGS)||$100M||Energy||Goldman|
|Leading contract compression infrastructure operator in the Permian Basin.|
|OS Therapies (OSTX)||$10M||Health Care||Boustead|
|Phase 2 biotech developing immunotherapies for osteosarcoma and other solid tumors.|
|Xuhang Holdings (SUNH)||$92M||Communication Services||Univest Sec.|
|Chinese provider of marketing services with a focus on new media content.|
|Ares Acquisition II (AACT.U)||$400M||SPAC||Citi|
|Second blank check company formed by Ares Management.|
|NetClass Technology (NTCL)||$17M||Consumer Discretionary||Revere Sec.|
|Provides professional education software and services in China.|
|CoLabs (CLLB)||$6M||Consumer Staples||Craft Capital|
|Makes skin care products designed to limit unwanted chemical absorption.|
IPO Market Snapshot
The Renaissance IPO Indices are market cap-weighted baskets of newly public companies. As of 3/30/2023, the Renaissance IPO Index was up 14.9% year-to-date, while the S&P 500 was up 6.0%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 2.0% year-to-date, while the ACWX was up 6.5%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Porsche and Kuaishou.
Five small Asian issuers are currently on the calendar for the week ahead, four of which qualify for inclusion in our IPO stats. Others may join throughout the week late.
Chinese battery-swapping station developer U Power (UCAR) plans to raise $18 million at a $368 million market cap. U Power started as a vehicle-sourcing service provider in China, and in 2020, it also began developing automated battery-swapping stations under the UOTTA brand. The company is highly unprofitable and has limited operating history in an emerging market.
Singapore-based Multi Ways Group (MWG) plans to raise $16 million at a $75 million market cap. Multi Ways supplies a wide range of heavy construction equipment to more than 100 customers across various industries and countries. Profitable and growing, its top five customers accounted for nearly half of 1H22 revenue.
Three holdovers may also list in the week ahead. Chinese amusement park operator Golden Heaven Group (GDHG) plans to raise $9 million at a $234 million market cap. Chinese tech firm Global Mofy Metaverse (GMM) plans to raise $6 million at a $130 million market cap. While not included below, Millennium Group International Holdings (MGIH) plans to raise $5 million at a $45 million market cap.
|U.S. IPO Calendar|
|IssuerBusiness||Deal SizeMarket Cap||Price RangeShares Filed||TopBookrunners|
|Global Mofy Metaverse (GMM) Beijing, China||$6M$130M||$4.50 – $5.501,200,000||Maxim|
|Chinese provider of virtual content and digital marketing services.|
|Golden Heaven Group (GDHG) Nanping, China||$9M$234M||$4 – $52,000,000||Revere Sec.R. F. Lafferty|
|Operates six amusement and water parks across southern China.|
|Multi Ways Holdings (MWG)||$16M$75M||$2 – $36,400,000||Spartan Capital|
|Singapore-based supplier of heavy construction equipment.|
|U Power (UCAR) Shanghai, China||$18M$368M||$6 – $82,500,000||WestPark Capital|
|Launching automated battery-swapping stations for electric vehicles in China.|
Street research is expected for two companies in the week ahead.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.