Opening Day: China's Intchains, ICZOOM Make U.S. Debut

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Shares of China's ICZOOM fell as much as 19% in their first trading day after opening flat on Wednesday in another slow IPO week. Chinese chip designer Intchains Group also made its debut earlier this week.


Latest IPOs and Direct Listings

Intchains Group (ICG) opened on March 16 at $8. The provider of integrated solutions consisting of high-performance ASIC chips and ancillary software and hardware for blockchain applications had priced its initial public offering of 1 million American Depositary Shares, or "ADS," at a price to public of $8.00 per ADS.

The company intends to use the net proceeds from the offering for the continuing development and enhancement of the company's "Xihe" Platform and "Wangshu" Platform; the establishment of research and development centers in China, Singapore, and selected locations overseas, research and development projects in cooperation with software companies in China and overseas, and the expansion of the company's research and development team; the establishment of an overseas operating center in Singapore, which will have business operation management functions, end application development capabilities and sales operations; the purchase of wafers and other raw materials from qualified suppliers; and other working capital and general corporate purposes.

ICZOOM (IZM) opened on March 15 at $4. The company, which operates a B2B e-commerce trading platform primarily engaged in sales of electronic component products in Hong Kong and mainland China, had priced its initial public offering of 1.5 million Class A ordinary shares at a public offering price of $4.00 per Class A ordinary share.

Proceeds from the offering will be used for sales and marketing, research and development, logistics and warehousing capabilities, and working capital.


SPAC IPOs This Week

Four Leaf Acquisition Corporation (FORLopened on March 17 at $10.16 per unit. The company said it believes that "there are many target companies that could become attractive public companies and will seek a target in the Internet of Things 'IoT' market."


Performance

  • Intchains Group ended Friday at $8.27.
  • ICZOOM finished the trading week at $3.28.


Upcoming IPOs

Upcoming IPO and direct listings expected include Stripe, Harden Technologies, Haoxin Holdings, New Ruipeng Pet, and Zeekr.

Stripe told employees that it hired Goldman Sachs and JPMorgan to take it public or to allow employees to sell stock within the next year, The Information’s Cory Weinberg and Becky Peterson have reported. The company is considering both a direct listing and a private-market transaction that would give employees liquidity in the next 12 months, according to an email viewed by The Information.

Stripe, trying to raise a huge sum of money from investors, has tried to craft "a compelling pitch" that it is growing faster this year than some of the biggest names in tech, has many more potential lines of revenue than just its core payments business, and that it is grabbing loads of customers focused on artificial intelligence, The Information’s Kate Clark and Cory Weinberg reported this week.

Stripe’s confidential pitch deck to investors, viewed by The Information, "shows how the company is trying to convince them to overlook a sharp slowdown in revenue last year," the latest report added.

Harden Technologies has filed with the SEC for initial public offering of 2.5 million ordinary shares and said it expects the initial public offering price will be between $5.00 to $7.00 per ordinary share. The company has applied for approval of the listing of its ordinary shares on the Nasdaq Capital Market and has reserved the symbol "HARD" for such listing for the ordinary shares.

The prospectus states, "Harden is a waste management and recycling equipment manufacturer in China, specializing in the manufacture of customized industrial shredders and material sorting machines and production lines."

Haoxin Holdings has filed with the SEC for an initial public offering of its Class A ordinary shares. The company plans to list its Class A ordinary shares on the Nasdaq Capital Market under the symbol "HXHX."

Haoxin Holdings Limited, or Haoxin Cayman, is a holding company incorporated in Cayman Islands that conducts a substantial majority of its operations through its subsidiaries established in the PRC. The company's prospectus states:

"We are a provider of temperature-controlled truckload service and urban delivery services in China with over 19 years of experience in the transportation industry... As of June 30, 2022, we operate a truckload fleet with 70 tractors, 155 trailers and 61 vans, 20 tractors and 4 vans of which are under capital lease. We do not use vehicles under rental arrangement to conduct our services and we prefer to acquire new vehicles via capital lease rather than one-off cash payment."

New Ruipeng Pet Group has filed with the SEC for an initial public offering of American depositary shares. The company said it intends to apply to list the ADSs on the Nasdaq Global Select Market under the symbol "RPET." The prospectus states: 

"We are the largest pet care platform in China and the second largest globally in terms of number of hospitals and revenue from pet care services in both 2020 and 2021, according to Frost & Sullivan. As of December 31, 2021, we had 23 pet hospital brands and 1,887 pet hospitals, approximately three times the sum of pet hospitals of our competitors that ranked the second through the tenth in China.

"By September 30, 2022, we had further increased our number of pet hospitals in China to 1,942. As of December 31, 2021, we had operations in 31 provinces and 111 cities, and we had an approximately 30% pet care market share in first-tier cities across China in 2021, according to Frost & Sullivan. As of September 30, 2022, we operated in 114 cities across China."

Zeekr, the upscale unit of Chinese EV maker Geely Automobile (GELYF), has confidentially filed for a U.S. initial public offering that values the company at more than $10 billion, reports Julie Zhu and Scott Murdoch for Reuters, citing people familiar with the matter. "The plans come as the brand, which competes with Tesla and Chinese peer Nio, sets its sights on marketing its 001 crossover" in Europe for 2023, added the Reuters story.


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