The IPOX® Update 7/31/23

Three U.S. Micro-IPOs Set to Debut Tomorrow: Details on Fitell Corp, Cheetah Net and Pixie Dust Technologies

This Tuesday is expected to see three smaller companies making their debut in the U.S. IPO market. Fitell Corp, an Australian fitness equipment retailer founded in 2007, is planning its expansion into Southeast Asia. The company, which generated $8 million in revenue last year with a net income of $12,602, plans to offer 3 million shares at a price of $5-$6 each. This will value the company at $61 million, with a price/sales ratio of 7.5x at $5 per share (the mid-point of the range). Fitell Corp's offering will primarily serve to raise funds for equipment, app development, licensing, and M&A. Notably, 83% of Fitell's sales are online, and the firm plans for connected gear and fitness apps.

Cheetah Net Supply Chain Service Inc, a luxury car importer based in North Carolina, plans to go public to raise $6.3 million. The company, founded in 2016, imports luxury cars like Mercedes and BMW from the U.S. to China, capitalizing on the price difference between the two markets. Their IPO will see 1.3 million shares offered at $4-$6 each. The company's estimated price/sales ratio at IPO launch will be about 1.63x, derived from a $90 million estimated market cap and $55 million revenue.

Lastly, Pixie Dust Technologies, Inc, a Japanese tech firm founded in 2017, plans to raise $19 million in its IPO on Nasdaq. Pixie Dust develops personal care and spatial products using proprietary wave control technology. After offering 2 million ADSs in the IPO, the firm will have 15 million shares outstanding, leading to an estimated market cap of $142 million. With a reported $4.3 million in revenue, the company's P/S ratio stands at 33x. Pixie Dust's primary markets are in Japan, but it also aims to expand internationally, including into the United States. (Source)

Middle East IPO Activity Forecasted to Remain Strong, According to Citigroup

Banking giant Citigroup anticipates that robust Middle East IPO activity, which has already raised $5.1 billion this year, will continue into 2024. Several companies, including Dubai's Roads & Transport Authority and shisha brand owner Advanced Inhalation Rituals, are preparing to list. Additionally, Abu Dhabi-based edtech firm Alef Education is considering an IPO in the region. According to Citigroup, Dubai and Saudi Arabia are likely to become hotspots for future IPOs. (Source)

China's SF Holding Announces $3 Billion Hong Kong IPO

SF Holding, China's largest express delivery company, plans a $3 billion Hong Kong IPO in August. The company, which is already listed in Shenzhen, has chosen Goldman Sachs Group, Huatai Securities, and JP Morgan Chase as IPO consultants for its secondary listing in Hong Kong. Founded in 1993, SF Holding covers almost all of China and operates in 98 other countries. The company reported a 45% increase in net income in 2022 compared to the previous year, with its 2022 revenue climbing 29% to around 267.5 billion yuan. (Source)

Huons Biopharma, Maker of Botox Products, Prepares for IPO

South Korean company Huons Biopharma is preparing for an IPO, with brokerage firm Samsung Securities chosen as the IPO underwriter. The maker of botulinum toxin products, Huons Biopharma, eyes growth through the global expansion of its "K-Botox" line following the listing. The company's market value is expected to reach 1 trillion KRW ($785m) post-IPO, following a two-fold sales increase last year. A new production plant in Jecheon, set for completion next year, will double its annual production capacity. (Source)