The IPO Buzz: TXO Energy Partners on the Marquee

The buzz this week comes from deep in the heart of Texas. TXO Energy Partners L.P. (TXO proposed) plans to price its $100 million IPO – 5 million units at a $19.00-to-$21.00 price range – on Thursday night (Jan. 26, 2023) to trade Friday, Jan. 27, on the New York Stock Exchange. The Fort Worth, Texas-based oil and natural gas limited partnership’s IPO is the only big deal – and the only NYSE listing – on this week’s  IPO Calendar of eight names. Seven of those eight deals are NASDAQ small-cap IPOs. Bankers aim to raise $205.75 million, if all eight deals get done.

Raymond James and Stifel are the lead joint book-runners. Janney Montgomery Scott and Capital One Securities round out TXO’s joint book-running team.

TXO develops and runs oil and gas producing properties in the Permian Basin of West Texas and New Mexico, as well as  in the San Juan Basin of New Mexico and Colorado. The company was founded in 2012.

Two things about TXO appeal to IPO investors:

  • TXO plans to pay a quarterly cash distribution (i.e., a dividend), the prospectus says.
  • TXO is profitable – Net income of $56.49 million on revenue of $343.78 million for the 12 months that ended Sept. 30, 2023.

Luxury Real Estate in Japan

Luxury single-family homes and condominiums in Tokyo and Kanagawa prefecture are the specialty of Lead Real Estate Co., Ltd. (LRE proposed), which plans to price its tiny IPO this week. The company intends to offer just 2.0 million American Depositary Shares (ADS) at $7.00 to $9.00 to raise $16.0 million, if priced at the mid-point. This is a NASDAQ listing.

Network 1 Financial Securities is the sole book-runner.

Lead Real Estate Co., Ltd. is profitable: Net income of $3.63 million on revenue of $119.89 million for the last 12 months.

This IPO was among the deals put on hold last September after the NASDAQ increased its scrutiny of small-cap initial public offerings.

U.S. Biotech, Chinese EdTech & Italian Soccer

The rest of this week’s IPO Calendar has an international flavor. Genelux Corp. (GNLX proposed), a U.S. cancer biotech, and Brera Holdings PLC (BREA proposed), the Irish parent of an Italian amateur soccer club, are planning to go public this week. Both are micro-cap deals. QuantaSing Group Limited (QSG proposed), the parent of China’s largest online education company for adults, intends to price its small-cap IPO – a carry-over from last week – sometime during the week of Jan. 23, 2023.

Elate Group, Inc. (ELGP proposed), an upscale moving and storage company that caters to A-list celebrities, sports stars, and CEOs in seven U.S. East Coast metro markets, aims to price its micro-cap IPO near the end of the week.

Two more micro-cap IPOs – Bullfrog AI Holdings, Inc. (BRFG/ BFRGW proposed), an AI-driven drug R&D platform, and Lucy Scientific Discovery, Inc. (LSDI proposed), a Canadian psychotropics drug company, – are also on this week’s IPO Calendar. Both are carry-overs from last week.

This week’s IPO Calendar is bustling, compared with last week. Only 1 small IPO – Cadrenal Therapeutics (CVKD) – was priced. The stock fell 17.6 percent on Friday to close at $4.12 in its NASDAQ debut.

Flowing into the Pipeline

More names could join the IPO Calendar as the week gets under way. The IPO Pipeline added six new filings last week, with three planning to raise about $100 million each:

Enlight Renewable Energy Ltd. (ENLT proposed), an Israeli company that develops, finances, builds, owns and runs utility-scale renewable energy projects,  including solar power, wind power and  energy storage – J.P. Morgan leads the book-runners;

Hesai Group (HSAI proposed), the Cayman Islands parent of China’s Hesai Technology, which provides LiDAR products and solutions for passenger and commercial vehicles with ADAS (advanced driver assistance systems) and for autonomous cars and trucks  – Goldman Sachs leads the book-runners, and

 – Mineralys Therapeutics (MLYS proposed), a U.S. biotech focused on developing a new drug to treat uncontrolled hypertension – BofA Securities leads the book-runners.

Stay tuned.

(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com.)

Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. 

To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. 

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.