The IPO Buzz: Ad Platform’s IPO Flies Solo in Short Holiday Week

Financial and advertising tech platform NYIAX, Inc. (NYX proposed) – a micro-cap IPO – is the only deal set for pricing during this short holiday week. The U.S. stock market will be closed Monday (Feb. 20, 2023) for Presidents’ Day, a federal holiday. A few more micro-cap deals may land on this week’s pricing roster after Wall Street gets back to work on Tuesday.

Many IPO investors are biding their time. They hope that some big IPOs will launch this week or next. Atlas Energy Solutions, Inc.  (AESI proposed), a profitable frac sand mining company, attracted attention when it updated its financial statements in an SEC filing last week. Some IPO pros think that Atlas Energy Solutions Inc.’s IPO could raise about $200 million.

NYIAX, Inc. (NYX proposed) aims to raise $9.25 million by offering 1.85 million shares at $5.00. Boustead Securities and WestPark Capital are the joint book-runners. This is a NASDAQ listing. Selling stockholders plan to offer another 1.36 million shares under a resale prospectus. The company will not receive any proceeds from the sale of the selling stockholders’ shares.

NYIAX is a marketplace where advertising inventory, campaigns and audiences can easily be listed and sold through the use of highly transparent and efficient financial technology, the prospectus says. The NYIAX platform gives media buyers – typically ad agencies or advertisers – and media sellers – typically publishers of content such as websites, mobile or desktop applications, podcasts, Connected TV (also known as OTT or over-the-top and streaming TV that lets brands reach their audience on smart TVs and internet devices) – a marketplace where advertising or audience campaigns are listed, bought, and sold; thereafter, the contract flows directly into the Hyperledger Fabric Blockchain for contract management, reconciliation, and automation purposes. The media sellers compensate NYIAX for the use of the platform and other services.

The NYIAX-NASDAQ Connection

NYIAX, Inc. (NYX proposed) is a financial and advertising technology company “founded in 2012 by Carolina Abenante, Mark Grinbaum and Graham Mosley, who formulated the genesis of NYIAX’s business model to bring financial platform technology and financial rigor to the advertising industry,” according to the prospectus.

“This technology platform is protected through a joint patent held by both NYIAX and Nasdaq Technology AB (“Nasdaq”), a wholly owned subsidiary of Nasdaq, Inc. This patented technology creates current and future opportunities in media and advertising industries.”

NYIAX and Nasdaq have an IT Services Agreement that runs through April 5, 2032.

“NYIAX’s platform uses the Nasdaq financial framework,” the prospectus says. “NYIAX employs smart contracts and blockchain technology as core ledger, which enables contract formation, compliance and reconciliation. NYIAX’s utilization of financial technology brings automation of many manual and outdated processes to the advertising industry. NYIAX aspires to change the methodology of how markets are developed within the advertising ecosystem. Our current advertising market mission is to connect buyers and sellers of media through trusted, secure, and efficient transactions.”

The company is not profitable, according to financial statements in the prospectus.

Next Week

Four small-cap IPOs with total estimated IPO proceeds of $65.6 million are on the IPO Calendar for next week – the week of Feb. 27, 2023. Those numbers may grow when the sun comes up on Wall Street on Tuesday (Feb. 21, 2023). All eyes will be on the SEC’s filing window.

Stay tuned.

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

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.