A cannabis micro-cap broke the IPO market’s month-long dry spell this past week and became the latest small issuer to soar in its debut, popping 163% on its first day. One SPAC also priced in the slowest week for blank check IPOs since August. The pipeline saw a bit of activity, with two IPO and four SPACs submitting initial filings.
Akanda (AKAN) raised $16 million at a $116 million market cap. The company plans to supply medicinal-grade cannabis products to wholesalers in international markets, with cultivation facilities in Southern Africa. Its operations are still early stage, and it has generated minimal revenue to date. Akanda traded down after its first day, finishing up 85%.
SPAC Goldenstone Acquisition (GDSTU) raised $50 million to acquire growth-oriented businesses with enterprise values between $150 million and $500 million.
| 2 IPOs During the Week of March 14th, 2022 | |||||
|---|---|---|---|---|---|
| Issuer Business | Deal Size | Market Cap at IPO | Price vs. Midpoint | First Day Return | Return at 03/18 |
| Akanda (AKAN) | $16M | $116M | -20% | +163% | +85% |
| UK-based cannabis producer with cultivation facilities in Southern Africa. | |||||
| Goldenstone Acquisition (GDSTU) | $50M | $66M | 0% | +0% | +0% |
| Blank check company targeting growth-oriented businesses. | |||||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Two IPOs submitted initial filings. Chinese toner cartridge maker Planet Image International (PLIM.RC) filed to raise $27 million, and diagnostics and PPE provider Virax Biolabs (VRAX) filed to raise $17 million.
Four SPACs filed led by tech-focused Israel Acquisitions (ISRLU) and energy-focused VIKASA SPAC Series I Acquisition (VSSAU), which both filed to raise $200 million.
| 6 Filings During the Week of March 14th, 2022 | |||
|---|---|---|---|
| Issuer Business | Deal Size | Sector | Lead Underwriter |
| Aura FAT Projects Acq. (AFARU) | $100M | SPAC | EF Hutton |
| Blank check company targeting emerging tech with growth potential in Southeast Asia and Australasia. | |||
| VIKASA SPAC I (VSSAU) | $200M | SPAC | Cantor Fitz. |
| Blank check company targeting renewable energy. | |||
| Virax Biolabs (VRAX) | $17M | Health Care | Boustead |
| UK-based provider of diagnostic tests and PPE for viral diseases. | |||
| Israel Acquisitions (ISRLU) | $200M | SPAC | BTIG |
| Blank check company targeting Israeli or Israel-related tech businesses. | |||
| Planet Image (PLIM.RC) | $27M | Industrials | Network 1 |
| Chinese toner cartridge manufacturer. | |||
| ClimateRock (CLRCU) | $75M | SPAC | Maxim |
| Blank check company targeting the sustainable energy industry in OECD countries. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/17/2022, the Renaissance IPO Index was down 27.3% year-to-date, while the S&P 500 was down 7.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 23.9% year-to-date, while the ACWX was down 7.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and Kuaishou.
