Three micro-caps debuted this past week during the IPO market’s annual February lull. Nine SPACs also priced. The pipeline remained relatively quiet, with two IPOs and one SPAC submitting initial filings.
The Arena Group (AREN), a media holding company operating Sports Illustrated, TheStreet, and other brands, raised $30 million at a $172 million market cap. Previously listed on the OTC as theMaven (MVEN), the company completed its uplisting to the NYSE American and began trading on Wednesday, a day before pricing its offering. Fast growing and highly unprofitable, The Arena Group priced below its last close on the OTC and finished flat.
Power-plug device company Sky Technologies (SKYX) upsized and priced above the range to raise $23 million, a fraction of its $1.4 billion market cap at IPO. Despite pricing up, Sky plummeted 25%. The company's products are mainly used for light fixtures and ceiling fans, and it has developed smart device capabilities over the past few years. The company is highly unprofitable and has generated limited revenues to date.
Japanese tech firm HeartCore (HTCR) priced at the midpoint of the lowered range to raise $15 million at a $98 million market cap. Controlled by its founder and CEO, HeartCore provides software through two business units: customer experience management and digital transformation. The company has demonstrated growth and profitability since 2020. HeartCore finished down -17%.
Nine SPACs went public this past week. Aurora Technology Acquisition (ATAKU), which is targeting businesses formed by Asian and Asian-American entrepreneurs, and Jaguar Global Growth I (JGGCU), formed by Jaguar Growth Partners and Hennessy Capital Group, both raised $200 million.
While not included below, three warrants-attached deals priced this past week: Scottish biotech TC BioPharm (TCBP) raised $18 million at a $138 million market cap; AdTech platform Direct Digital Holdings (DRCT) raised $15 million at a $78 million market cap; and insulin pump developer Modular Medical (MODD) raised $15 million at a $60 million market cap. Also, commercial REIT Modiv (MDV) raised $1 million at a $189 million market cap. On-land shrimp farmer tru Shrimp Co. (BTRU) was pulled. These deals are excluded from Renaissance Capital’s 2022 stats.
| 12 IPOs During the Week of February 7th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 02/11 |
| Counter Press Acquisition (CPAQU) | $75M | $98M | 0% | +0% | +0% |
| Blank check company targeting the sports, media, and data analytics sectors. | |||||
| Evergreen Corp (EVGRU) | $100M | $130M | 0% | +0% | +0% |
| Blank check company targeting tech-focused businesses in Asia. | |||||
| HNR Acquisition (HNRAU) | $75M | $101M | 0% | +0% | +0% |
| Blank check company formed by Houston Natural Resources targeting the North American energy sector. | |||||
| Jaguar Global Growth I (JGGCU) | $200M | $267M | 0% | +0% | +0% |
| Blank check company formed by Jaguar Growth Partners and Hennessy Capital Group. | |||||
| Signal Hill Acquisition (SGHLU) | $100M | $125M | 0% | +0% | +0% |
| Blank check company targeting DTC media, tech, and emerging digital enterprise-focused businesses. | |||||
| The Arena Group (AREN) | $30M | $172M | -35% | +0% | +0% |
| Media holding company operating Sports Illustrated, TheStreet, and other brands. | |||||
| Relativity Acquisition (RACYU) | $125M | $161M | 0% | +0% | +0% |
| Blank check company targeting the cannabis industry. | |||||
| Aurora Technology Acq. (ATAKU) | $200M | $253M | 0% | +0% | +0% |
| Blank check company targeting tech businesses formed by Asian or Asian-American entrepreneurs. | |||||
| LIV Capital Acq. II (LIVBU) | $100M | $126M | 0% | +0% | +0% |
| Second blank check company led by LIV Capital Group targeting Mexico. | |||||
| byNordic Acquisition (BYNOU) | $150M | $188M | 0% | -1% | -1% |
| Blank check company targeting a fintech business in northern Europe. | |||||
| HeartCore Enterprises (HTCR) | $15M | $98M | -17% | -1% | -17% |
| Provides businesses with customer experience software and IT services in Japan. | |||||
| Sky Technologies (SKYX) | $23M | $1,378M | 17% | -15% | -25% |
| Provides universal power-plug devices for light fixtures and ceiling fans. | |||||
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Two IPOs submitted initial filings this week. Digital ad firm Aleph Group (ALEF), which focuses on emerging markets, filed to raise an estimated $300 million. Being spun out of Bausch Health, aesthetic medical device maker Solta Medical (SLTA) filed to raise an estimated $200 million.
The week’s sole SPAC filing, Endeavor Acquisition (ENACU) filed to raise $225 million to target the consumer and technology sectors in Southeast Asia.
| 3 Filings During the Week of February 7th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Endeavor Acquisition (ENACU) | $225M | SPAC | Cantor Fitz. |
| Blank check company targeting the consumer and technology sectors in Southeast Asia. | |||
| Solta Medical (SLTA) | $200M | Health Care | Goldman |
| Aesthetic medical device maker being spun out of Bausch Health. | |||
| Aleph Group (ALEF) | $300M | Communication Services | JP Morgan |
| Provides tech platforms with ad distribution services in emerging countries. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 2/10/22, the Renaissance IPO Index was down 15.4% year-to-date, while the S&P 500 was down 5.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Uber Technologies (UBER). The Renaissance International IPO Index was down 9.2% year-to-date, while the ACWX was down 0.4%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Zhejiang Kuaishou Information Technology.
