Weekly Summary of US Listings: Chinese Fintech AMTD Digital Leads A 3 IPO Week
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Three Chinese issuers and a nano-cap began trading last week. Fintech spin-off AMTD Digital (HKD) led the group with its $ 125 million deal, a rare feat in a year that has only produced a dozen over $ 100 million IPOs.
In the pipeline, four small IPOs and one SPAC submitted initial applications. The most notable news came from the thrift store chain Savers Value Village (SVV) and girl fashion retailer Claires (CLRS), both of which provided an updated economy and human capital management platform Just works (JW), which withdrew its IPO plans.
AMTD Digital priced above the midpoint to raise $ 125 million to a market value of $ 1.4 billion. Spun out of the AMTD Group, AMTD Digital says they operate a comprehensive platform for digital solutions in Asia. The company is profitable and primarily generates income from fees and commissions in two industries. AMTD Digital ended up 108%.
Chinese tile designer Nano Labs (NA) priced near the top of the series to raise $ 20 million to a market value of $ 637 million. Fast growing and very unprofitable, the company designs fabulous computer chips primarily for the extraction of various cryptocurrencies. Nano Labs ended down 41%.
Chinese locksmith Intelligent Living Application Group (ILAG) priced below expectations to raise $ 20 million to a market value of $ 72 million. The company manufactures and sells mechanical lock sets to customers in the US and Canada and has been looking to expand into smart locks. Intelligent Living Application ended down 44%.
Although not counted below, OTC is listed Net capital (NCPL) raised $ 5 million to a market value of $ 18 million in a unit offer on Nasdaq.
| 3 IPOs during the week of 11 July 2022 | |||||
|---|---|---|---|---|---|
| Issuer business | Agreement size | Market value at stock exchange listing | Price vs. midpoint | Return first day | Return 07/15 |
| AMTD Digital (HKD) | $ 125 million | $ 1443 million | 4% | +108% | +108% |
| Digital financial services provider spun out of China’s AMTD Group. | |||||
| Nano Labs (NA) | $ 20 million | $ 637 million | 10% | +5% | -41% |
| Fabless chip designer in China focused on cryptocurrency mining. | |||||
| Intelligent Living (ILAG) | $ 20 million | $ 72 million | -11% | +53% | -44% |
| Chinese manufacturer of mechanical locking sets. | |||||
The IPO market’s slow summer is set to continue, with an IPO scheduled to price in the coming week. Other small offers can also be included in the calendar during the week.
After postponing the debut last week, Virax Biolabs (VRAX) plans to raise $ 7 million to a market value of $ 57 million. Operating in the UK and Hong Kong, Virax Biolabs offers a portfolio of diagnostic test kits and co-technologies and PPE products for viral diseases. The company has a limited operating history and is very unprofitable.
| US IPO calendar | |||
|---|---|---|---|
| Issuer business | Deal Size Market Cap | Price range shares archived | Top bookrunners |
| Virax Biolabs (VRAX) London, UK | $ 7M $ 57M | $ 51,350,000 | Boustead |
| UK-based provider of diagnostic tests and PPE for viral diseases. | |||
Street research is expected for one company in the coming week.
Snapshot of the listing
The Renaissance IPO indices are market value-weighted curves of recent public companies. As of 14.07.2022, the Renaissance IPO index was down 47.5% so far this year, while the S&P 500 was down 19.8%. Renaissance Capital’s IPO ETF (IPO) follows the index, and top ETF holdings include Airbnb (ABNB) and Snowflake (SNOW). The Renaissance International IPO index was down 32.8% so far this year, while the ACWX was down 20.9%. Renaissance Capital’s International IPO ETF (IPOS) follows the index, and top ETF stocks include Kuaishou (OTCPK: KUASF, OTCPK: KSHTY) and Nongfu Spring (OTCPK: NNFSF).
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Editor’s note: The summary points for this article were chosen by the Seeking Alpha editors.
