SRM Entertainment, which makes toys and souvenirs for theme parks and entertainment venues, lowered the proposed deal size for its upcoming IPO on Tuesday.
The Jupiter, FL-based company now plans to raise $6 million by offering 1.3 million shares at $5. The company had previously filed to offer 1.8 million shares at a range of $4.50 to $5.50. At the revised terms, SRM Entertainment will raise 31% less in proceeds than previously anticipated.
Because the company is expected to have a post-IPO market cap of less than $50 million, SRM Entertainment will be excluded from Renaissance Capital's 2023 IPO stats.
SRM Entertainment designs and develops toys and souvenirs for theme parks and entertainment venues, with a customer base including Walt Disney Parks and Resorts, Universal Studios, SeaWorld, and Six Flags. SRM is being spun out of OTC product developer Jupiter Wellness (Nasdaq: JUPW), which acquired the company in 2020.
SRM Entertainment was founded in 1981 and booked $6 million in sales for the 12 months ended March 31, 2023. It plans to list on the Nasdaq under the symbol SRM. EF Hutton is the sole bookrunner on the deal. It is expected to price during the week of July 17, 2023.
