Japan, a Bitcoin miner and a real estate investment trust (REIT) are featured on this week’s IPO Calendar. But the U.S. stock market’s plunge on Tuesday drove the NASDAQ down close to correction territory as bond yields hit a two-year high. Tuesday’s sell-off was a shock after the long holiday weekend. The U.S. stock market was closed on Monday (Jan. 17, 2022) for Martin Luther King, Jr. Day, the federal holiday honoring the birthday of the slain civil rights leader. He would have turned 93 on Saturday, Jan. 15, 2022. (Editor’s Note: This column was updated Tuesday evening.)
“When the market is crappy, no one’s going to line up around the block for IPOs,” an IPO pro said.
Yoshitsu Ltd. (TKLF), a Japanese retailer of beauty and health products, defied gravity on Tuesday with its stock gaining 700 percent in its first day of trading on the NASDAQ. The IPO, priced on Jan. 10, 2022, at $4, opened at $40.99, its high for the day, and closed at $32.
Univest Securities was the sole book-runner of Yoshitsu’s IPO.
On Wednesday night, Generation Asia I Acquisition Limited (GAQ.U proposed) is scheduled for pricing, with Nomura as the sole book-runner of this SPAC’s IPO. The offering, consisting of 20 million units at $10 each, has attracted interest from three anchor investors, whose indications of interest account in aggregate for up to 101.3 percent of the deal.
Bitcoin miner Rhodium Enterprises (RHDM proposed) and the REIT, Four Springs Capital Trust (FSPR proposed), are also set for pricing Wednesday night.
Rhodium says its proprietary liquid-cooling technology helps lower the energy costs of producing Bitcoin at its site in Texas.
Bitcoin is a sector with dedicated fans. But skeptics say that the volatility of Bitcoin’s price is a risk factor.
Four Springs Capital Trust is a REIT that owns and operates income-producing properties with long-term leases from tenants in the industrial, medical, necessity/retail and office sectors. This REIT’s IPO is attracting attention from financial and real estate sector buyers.
Bankers expect to raise about $700 million this week from 10 deals on this week’s pricing roster. The lineup includes six IPOs, one NASDAQ uplisting and three SPACs. (Another SPAC, Technology & Telecommunication Acquisition Corp. (TETEU), was priced on Friday, Jan. 14, and started trading today (Tuesday, Jan. 18, 2022).)
Just one IPO – Credo Technology Group Holding Ltd. (CRDO proposed) – has been scheduled so far for the final week of January. That could change as the short work week goes along and more filings flow into the U.S. Securities and Exchange Commission.
Stay tuned.
For an overview of the IPOs scheduled for pricing so far this week, please click on the link to IPO Calendar: IPO Calendar | IPOScoop
(For more information about these companies, please click the hyperlinks, which will take you to the IPO profiles on IPOScoop.com.)
(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)
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.