Opening Day: New Stock Offerings Slump To Lowest Number In A Decade

Image Source: Kevin Smith on Flickr

It was another slow week for IPOs in the U.S. New stock offerings slumped to the lowest number in over a decade last month amid the war in Ukraine and as rising borrowing costs sent share prices tumbling.

According to data compiled by Bloomberg, initial and secondary public offerings collapsed 92% to $5.95 billion from the year earlier, the least since September of 2011. Meanwhile, news of a regulatory probe into Wall Street's block trade practices cast an additional shadow over the market.

Of note, initial public offerings by biotech companies are also slowing after two record-setting years. According to data from Nasdaq, seven biotech companies have gone public in the U.S. this year as of Feb. 22, compared with 21 as of the same date in 2021.

Upcoming IPOs

Upcoming IPO and direct listings expected include Solta Medical, Bitdefender, Phoenix Motor, Chobani, FreeCast, and Samba TV.

Bausch Health Companies (BHC) announced that its wholly owned subsidiary, Solta Medical, has publicly filed a registration statement on Form S-1 with the U.S. SEC relating to a proposed initial public offering of Solta's common shares. The number of shares to be offered and the price range for the proposed offering have not yet been determined.

Solta has applied to list its common shares on the Nasdaq Global Select Market under the symbol 'SLTA.' Bausch Health has completed all internal procedural steps and is fully prepared to launch both the Solta and Bausch + Lomb Corporation IPOs, subject to receipt of regulatory, stock exchange, and other approvals.

Samba TV has filed with the SEC for an initial public offering of shares of Class A common stock. The company has applied to list its Class A common stock on the New York Stock Exchange under the symbol 'SMBA.' In its prospectus, Samba TV stated: 

"We are transforming internet Connected TVs - CTVs - into a platform for our customers, which are comprised of brands, agencies, content programmers, publishers and measurement and advertising vendors, to build attentive, engaged audiences. Our AI-driven content identification software is embedded in CTVs sold by leading original equipment manufacturer - OEM - brands across the globe.

Through our software, we form direct relationships with millions of viewers, who provide us consent to collect their viewership data... We are active in six countries today, with ambitions to expand into the more than 100 countries where CTVs integrated with our technology are sold."

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 U.S. 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.

Phoenix Motor filed for an initial public offering on the Nasdaq under symbol 'PEV.' Upon the closing of the offering, Phoenix Motor will be a "controlled company" within the meaning of the corporate governance standards because more than 50% of the voting power of its outstanding common stock will be beneficially owned by SPI Energy (SPI).

Phoenix Motor currently designs, assembles, and integrates electric drive systems and light and medium duty electric vehicles and markets and sells electric vehicle chargers for the commercial and residential markets. The company delivered its first commercial electric vehicle in 2014. It develops and integrates an electric drivetrain into the Ford Econoline Chassis, specifically on the Ford E-450.

Chobani has filed with the SEC for an initial public offering, stating that it expects that the shares of its Class A common stock will trade on the Nasdaq Global Select Market under the symbol 'CHO.' In its prospectus, Chobani stated:

"At Chobani, we are an anti-traditional consumer packaged goods company... We currently sell our products in single-serve, multi-serve, and/or multi-pack formats through approximately 95,000 retail locations in the United States... Chobani also has an international presence through the operation of a manufacturing facility in Melbourne, Australia and participates in certain international export markets, such as Mexico and Canada."

FreeCast has filed with the SEC for an initial public offering of common stock and has applied to list its common stock on the Nasdaq Capital Market, or Nasdaq, under the symbol 'CAST.' FreeCast is an entertainment-based content discovery, aggregation, and management company that provides SmartGuide digital interactive technology for consumers to organize numerous sources of online media similar to a traditional on-screen television guide.  

Recent IPOs to Watch

Direct Digital (DRCT), TC Biopharm (TCBP), SQL Technologies (SKYX), and HeartCore Enterprises (HTCR) 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.

Disclosure: None

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