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A hashish micro-cap broke the IPO market’s month-long dry spell this previous week and have become the newest small issuer to soar in its debut, popping 163% on its first day.
One SPAC additionally priced within the slowest week for clean test IPOs since August. The pipeline noticed a little bit of exercise, with two IPO and 4 SPACs submitting preliminary filings.
Akanda (AKAN) raised $16 million at a $116 million market cap. The corporate plans to produce medicinal-grade hashish merchandise to wholesalers in worldwide markets, with cultivation services in Southern Africa. Its operations are nonetheless early stage, and it has generated minimal income up to now. Akanda traded down after its first day, ending up 85%.
SPAC Goldenstone Acquisition (GDSTU) raised $50 million to accumulate growth-oriented companies with enterprise values between $150 million and $500 million.
| 2 IPOs Through the Week of March 14th, 2022 | |||||
|---|---|---|---|---|---|
|
Issuer Enterprise |
Deal Measurement |
Market Cap at IPO |
Worth vs. Midpoint |
First Day Return |
Return at 03/18 |
| Akanda (AKAN) | $16M | $116M | -20% | +163% | +85% |
| UK-based hashish producer with cultivation services in Southern Africa. | |||||
| Goldenstone Acquisition (GDSTU) | $50M | $66M | 0% | +0% | +0% |
| Clean test firm focusing on growth-oriented companies. | |||||
Two IPOs submitted preliminary filings. Chinese language toner cartridge maker Planet Picture Worldwide (PLIM.RC) filed to lift $27 million, and diagnostics and PPE supplier Virax Biolabs (VRAX) filed to lift $17 million.
4 SPACs filed led by tech-focused Israel Acquisitions (ISRLU) and energy-focused VIKASA SPAC Collection I Acquisition (VSSAU), which each filed to lift $200 million.
| 6 Filings Through the Week of March 14th, 2022 | |||
|---|---|---|---|
|
Issuer Enterprise |
Deal Measurement |
Sector |
Lead Underwriter |
| Aura FAT Tasks Acq. (AFARU) | $100M | SPAC | EF Hutton |
| Clean test firm focusing on rising tech with progress potential in Southeast Asia and Australasia. | |||
| VIKASA SPAC I (VSSAU) | $200M | SPAC | Cantor Fitz. |
| Clean test firm focusing on renewable vitality. | |||
| Virax Biolabs (VRAX) | $17M | Well being Care | Boustead |
| UK-based supplier of diagnostic assessments and PPE for viral illnesses. | |||
| Israel Acquisitions (ISRLU) | $200M | SPAC | BTIG |
| Clean test firm focusing on Israeli or Israel-related tech companies. | |||
| Planet Picture (PLIM.RC) | $27M | Industrials | Community 1 |
| Chinese language toner cartridge producer. | |||
| ClimateRock (CLRCU) | $75M | SPAC | Maxim |
| Clean test firm focusing on the sustainable vitality trade in OECD international locations. | |||
No IPOs are at the moment scheduled to cost within the week forward, though a number of SPACs might be part of the calendar in the course of the week.
New issuers proceed to delay launching, possible deterred by considerations of inflation, the conflict in Ukraine, and poor IPO returns in latest months. Giant offers ready within the pipeline embody Bausch Well being spin-off Bausch + Lomb (BLCO), mattress retailer Mattress Agency (MFRM), car-sharing platform Turo (TURO), and digital advert agency Aleph Group (ALEF).
Lock-up intervals shall be expiring for as much as 11 corporations.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public corporations. As of three/17/2022, the Renaissance IPO Index was down 27.3% year-to-date, whereas the S&P 500 was down 7.1%. Renaissance Capital’s IPO ETF (IPO) tracks the index, and high ETF holdings embody Uber Applied sciences (UBER) and Snowflake (SNOW).
The Renaissance Worldwide IPO Index was down 23.9% year-to-date, whereas the ACWX was down 7.1%. Renaissance Capital’s Worldwide IPO ETF (IPOS) tracks the index, and high ETF holdings embody Volvo Automobile Group (OTCPK:VOLAF) and Kuaishou (OTCPK:KUASF).
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