Ingenious Buddy
The IPO market is preparing for a significant event this week, with SoftBank Group’s chip CPU unit, Arm Holdings (ARM), preparing to price its $4.7B IPO. This marks the largest IPO since Rivian (RIVN) in November 2021. As market participants eagerly await the results of ARM Holdings’ IPO, the Renaissance IPO Index has shown remarkable growth, gaining 36% YTD, which is more than double the 16.6% return of the S&P 500 Index, reflecting a strong market appetite for initial public offerings.
Coming IPOs that are expected to price this week
Arm Holdings (ARM) is raising $4.68B by offering 95.5M shares estimated to price between $47-$51 per share. Description: British chip design maker owned by Japanese tech conglomerate SoftBank (OTCPK:SFTBY).
CardieX (OTC:CDEX) is raising $10.3M by offering 1.3M shares at an estimated price of between $7.5-$8 per share. Description: A Sydney-based devices developer to monitor cardiovascular health.
Lead Real Estate (LRE) is raising $9.1M by offering 1.1M shares at an estimated price between $7-$9 per share. Description: Luxury real estate developer for sale and rent in Japan.
Maison Solutions (NASDAQ:MSS) is raising $12M by offering 3M shares that are expected to be priced at $4 per share. Description: Grocery operator.
Nature Wood Group Limited (NASDAQ:NWGL) is raising $9.2M by offering 0.9M shares expected to price between $9-$11 per share. Description: Forestry company.
Davis Commodities (DTCK) is raising $4.6M by issuing 1.1M shares estimated to price between $4-$4.5 per share. Description: Singapore-based agricultural commodities trading platform.
Vitro Biopharma (VTRO) is raising $10M with an expected 1.8M shares priced in the range of $5-$6 per share. Description: A biotechnology company.
Gamer Pakistan (NASDAQ:GPAK) is raising $7.7M by offering 1.7M shares expected to be priced between $4-$5 per share. Description: An e-sports event promotion and product marketing company.
New notable filings
Zhibao Technology (ZBAO) filed with the SEC to raise up to $9M in an initial public offering. The company, which operates through Zhibao China Group, provides digital insurance brokerage services using a 2B2C digital embedded insurance model. The company plans to list on Nasdaq under the symbol ZBAO. Description: A Chinese digital insurance brokerage platform.
Smith Douglas Homes (SDHC) has filed with the SEC to raise $100M in an initial public offering. The company focuses on single-family homes, targeting entry-level and empty-nest homebuyers. It plans to expand its operations and list on the NYSE under the symbol SDHC. Description: A southeastern US homebuilder.
Youxin Technology (YAAS) has filed with the SEC to raise $8M in an initial public offering by offering 2M shares at $4. The company, founded in 2018, primarily generates revenue from professional services and payment channel services. It intends to go public on the Nasdaq under the symbol YAAS. Description: A Chinese software-as-a-service (SaaS) and platform-as-a-service (PaaS) provider.
Terms and changes
Japanese medical and relaxation salon chain ZEROSPO (ZRSP) has reduced its proposed deal size for its upcoming IPO from 3.75M shares to 1.5M shares at the same estimated price range of $4 to $5. The company plans to list on Nasdaq under the symbol ZRSP.
Medical device developer, EMulate Therapeutics (EMTX) has reduced its proposed deal size by 8% ahead of its IPO. The company now plans to raise $12M by offering 2.3M shares (reduced from prior offering of 2.5M shares) at a price range of $4 to $6. The company plans to list on Nasdaq under the symbol EMTX.
Hong Kong-based financial services firm Garden Stage (WIN) has reduced its deal size for its upcoming U.S. IPO by 40%. The company now plans to raise $9M by offering 2M shares at a price range of $4 to $5. It had previously filed to offer 3.8M shares (40% secondary) at $4. The company, which provides underwriting and brokerage services, securities dealing and brokerage services, and asset management services in Hong Kong, is aiming to list on the Nasdaq under the symbol WIN.
Withdrawals
A blank check company, Forest Acquisition (FOACU) withdrew its plans for an initial public offering. The SPAC, led by former Greencity Acquisition CEO Ming Zhang, aimed to raise $66M by offering 6.6M units at $10 each, targeting opportunities with enterprise values between $200M and $500M. It had planned to list on the Nasdaq under the symbol FOACU.
Lockup period expirations
ICZOOM Group (NASDAQ:IZM) on 9/11/2023. Price movement over the past six months: +150.5%.
Intchains Group (NASDAQ:ICG) on 9/12/2023. Price movement over the past six months: -15%.
SA commentary
“The upcoming ARM IPO comes at a time of high investor demand for chip companies, but the valuation is too high for its growth prospects,” writes SA contributor MM Research.