Opening Day: AIG's Corebridge Gets Lukewarm Reception In Largest IPO Of 2022

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After completing the largest US IPO of the year, shares of Corebridge slipped amid an unenthusiastic reception by investors. The life and asset management arm of the insurance group, AIG, had priced its initial public offering at the low end of its target range.


Latest IPOs and Direct Listings

Corebridge (CRBG) opened on Sept. 15 at $20.50. The company had priced 80 million shares at $21.00, the low end of the target $21.00-$24.00 range. American International Group (AIG), as the selling stockholder, is offering 80 million existing shares of common stock out of 645 million total common shares of Corebridge, corresponding to approximately $1.7 billion of gross proceeds.

With more than $350 billion in assets under management and administration as of June 30, Corebridge is "one of the largest providers of retirement solutions and insurance products in the United States," AIG noted.

Third Harmonic Bio (THRD) opened on Sept. 15 at $20.50. The clinical-stage biopharmaceutical company developing a potent, highly selective, oral KIT inhibitor for the treatment of severe inflammatory diseases had priced its upsized initial public offering of 10.9 million shares of its common stock at a public offering price of $17.00 per share.

Nexalin Technology (NXL) opened on Sept. 16 at $2.70 per share. Nexalin offered 2,315,000 units, consisting of 2,315,000 shares of its common stock and 2,315,000 accompanying warrants to purchase up to 2,315,000 shares of common stock. Each share of common stock was sold together with one warrant, each to purchase one share of common stock with an exercise price of $4.15 per share, at a combined offering price of $4.15.

Nexalin designs and develops neurostimulation products with a mission to "help combat the ongoing global mental health epidemic." Its Gen-2 device was recently approved in China by the National Medical Products Administration for the treatment of insomnia and depression in China.

LinkBancorp (LNKB) opened on Sept. 14 at $8.16. LinkBancorp, the holding company of The Gratz Bank, including its Linkbank division, had priced 4.575 million shares at $7.50.

Yoshiharu (YOSH) opened on Sept. 9 at $5.20. The California-based restaurant operator had priced its upsized 2.94 million share initial public offering of its Class A common stock at a public offering price of $4.00 per share. Specializing in Japanese ramen, Yoshiharu currently owns and operates eight restaurants with an additional one in development.


Performance

  • Corebridge ended the week at $20.72.
  • Third Harmonic Bio finished Friday at $18.
  • LinkBancorp ended the week at $7.50.
  • Nexalin Technology closed its first day of trading at $2.25
  • Yoshiharu finished this week at $1.78.


Recent IPOs to Watch

Starbox Group (STBX), Mobilicom (MOB), Jianzhi Education Technology (JZ), Onfolio (ONFO), Jeffs' Brands (JFBR), and PaxMedica (PXMD) are among stocks that could see new coverage roll out this upcoming week as the quiet periods for banks that underwrote the companies' IPOs expire.


Upcoming IPOs

Upcoming IPO and direct listings expected include AgiiPlus, Alopexx, CBL International, Trio Petroleum, Instacart, Bitdefender, and Group One. According to a filing, Alopexx has file to raise $15 million in an IPO. The company is developing vaccines and monoclonal antibodies for different types of infections.

AgiiPlus has filed with the SEC for an initial public offering of its Class A ordinary shares and has reserved the symbol 'AGII' for purposes of listing its Class A ordinary shares on the Nasdaq Stock Market. The filing stated:

"AgiiPlus is not an operating company but a Cayman Islands holding company with operations conducted by its subsidiaries, including subsidiaries in China... On May 20, 2022, Tangtangjia Business Consulting Co., Ltd., a PRC subsidiary of AgiiPlus Inc., terminated the contractual arrangements with Shanghai Tangtangjia Information Technology Co., Ltd., or the VIE, and AgiiPlus Inc. unwound its VIE structure...

"On May 20, 2022, Shanghai Huiying Real Estate Agency Co., a PRC subsidiary of AgiiPlus, entered into a business cooperation agreement with Shanghai Zhiban, pursuant to which Shanghai Zhiban agreed to provide website operations and maintenance services for the Maxoffice website to Shanghai Huiying as a third-party service provider, and authorize AgiiPlus to advertise its services under Tangtang through publishing posts on the Maxoffice website.

"Under the brand 'Tangtang,' AgiiPlus' subsidiaries offer flexible workspaces leasing and enterprise services through digital platforms, including the Maxoffice website."

CBL International has filed with the SEC for an initial public offering in the United States of its ordinary shares. CBL is offering 3.75 million ordinary shares on a firm commitment basis and expects that the initial public offering price will be between $4.00 and $4.80 per ordinary share. The company will apply to have its ordinary shares listed on the Nasdaq Capital Market under the symbol 'BANL.'

Trio Petroleum will be offering an undetermined number of shares of its common stock in an initial public offering, the company stated in a filing with the SEC. The company's prospectus stated:

"We are an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California. The company was incorporated on July 19, 2021, under the laws of Delaware to acquire, fund and develop oil exploration and production assets in California. We have no revenue-generating operations as of the date of this prospectus.

"The company was formed to acquire Trio Petroleum LLC's approximate 82.5% working interest in the large, approximately 8,600-acre South Salinas Project, and subsequently partner with certain members of Trio LLC's management team to develop and operate those assets. For the period from July 19, 2021 (inception) through October 31, 2021, we generated no revenues, reported a net loss of $102,064, and cash flow used in operating activities of $258,923.

"For the six months ended April 30, 2022, we generated no revenues, reported a net loss of $2,377,207 and cash flows used in operating activities of $298,666. As of April 30, 2022, we had an accumulated deficit of $2,479,271.

"There is substantial doubt regarding our ability to continue as a going concern as a result of our accumulated deficit and no source of revenue sufficient to cover our cost of operation as well as our dependence on private equity and financings."

Instacart, the grocery-delivery company that competes with offerings from Amazon (AMZN), Uber (UBER), and DoorDash (DASH), still expects to go public before year's end despite 2022 to date being "one of the slowest years for IPOs in more than a decade," The Wall Street Journal's Berber Jin, Corrie Driebusch, Jaewon Kang, and Preetika Rana reported earlier.

Instacart confidentially filed for an initial public offering with the SEC earlier this year and is in the process of responding to comments from the SEC on its IPO documents, sources familiar with the matter told the reporters. Instacart, which had previously leaned toward going public via a direct listing, is now considering a traditional IPO so it could raise cash that could be used for future acquisitions, the sources said. 

Bitdefender Holding B.V., which identifies itself as "a global cybersecurity leader," announced that it has confidentially submitted a draft registration statement on Form F-1 to the US Securities Exchange Commission for the proposed initial public offering of its securities in the United States.

"The timing, size, and price range for the proposed offering have yet to be determined. The initial public offering is subject to SEC and other regulatory review processes, as well as market and other conditions," the company said. Bitdefender did not disclose a proposed ticker symbol for its anticipated stock offering.

Group One, the company behind mixed martial arts brand One Championship, is considering a US initial public offering after previously exploring a listing via a blank check company, Bloomberg's Manuel Baigorri, Olivia Poh, and Elffie Chew report, citing people familiar with the matter. Group One is changing its legal domicile to the Cayman Islands from its current one in Singapore as a step towards a potential US listing, the people said.


Other IPO News

Volkswagen (VWAGY) said that it would list its iconic sports car maker Porsche (POAHY) in one of the biggest initial public offerings in years and a crucial test of investors’ confidence as high inflation and the war in Ukraine put a damper on the global economy, The Wall Street Journal’s William Boston reports.

The offering could value Porsche at as much as $84 billion, according to analyst estimates, injecting fresh cash into VW’s coffers that executives say will help the company bankroll its transition to electric vehicles and self-driving cars, the author writes. The German auto maker intends to list Porsche on the Frankfurt Stock Exchange and offer 25% of Porsche’s preferred stock to private investors in a public offering aimed for late September or early October.


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