The initial public offering (IPO) market has cooled down from even its persistently slow current state as the Nasdaq recently announced it will be increasing its scrutiny of micro-cap issuers amid volatile "pop-and-drop" trading trends.
According to a Bloomberg report, the Nasdaq is looking more closely at prospective small-cap issues across industries after a series of outsized gains by new listings quickly bottomed in a matter of days. The most recent example was Addentax Group Corp. (ATXG ), which popped over 13,000% on its first trading day only to end the week down 25% from its initial offering.
As a possible consequence of this increased scrutiny, only one company priced on Wall Street last week, with several other small deals postponing their debuts.
Loop Media Ltd. (LPTV ) priced its shares at its midpoint to raise $12 million. The company operates a proprietary content streaming box subscriptions for bars, hotels and stores, generating most of its revenue through advertisements. However, the company is currently unprofitable. Loop Media ended its first week down 5%.
Here's companies that may price in the week ahead:
Lead Real Estate Co. Ltd. (LRE ) plans to raise $34.5 million from 2 million shares priced between $12 to $15 each. The company offers luxury residential properties in the Japanese market, as well as overseas condominiums in the United States and Hong Kong.
YanGuFang International Group Co., Ltd. (YGF ) plans to raise $30 million from 5 million shares priced between $5 to $7 each. The Chinese company produces oat and grain products, holding operations in Beijing, Shanghai, Jiangsu, Zhejiang, Fugian, Guangdong, Inner Mongolia, Anhui, and Chongqing, and has international expansion plans for the United States for the second half of 2022.
Intensity Therapeutics, Inc. (INTS ) plans to raise $10 million from 2.2 million shares offering between $4 to $5 each. The Phase 2 biotech is developing intratumoral injection therapies for cancer, with its lead candidate, INT230-6, consisting of two proven anti-cancer cytotoxic agents, cisplatin and vinblastine sulfate, mixed with the amphiphilic molecule, to aid bioavailability.
