Two SPAC IPOs wrapped up the second week of October: Hudson Acquisition I Corp. (HUDAU) started trading on the NASDAQ today (Friday, Oct. 14, 2022) at $10.01, up a penny from its SPAC IPO price – and ended the day at $10.01. TenX Keane Acquisition (TENKU) also began NASDAQ trading today – opening at $10.04 – and closing the session at $10.03. These SPAC IPOs made their debuts in a week that will be remembered for the Dow’s volatility on Thursday, the 13th. For the first time, the Dow Jones Industrial Average fell at least 500 points and rose at least 800 points in a single trading day, according to Dow Jones Market Data. The Dow’s surge followed its plunge on the surprisingly strong September core CPI data. (Editor’s Note: This column, initially published Thursday, was updated Friday morning.)
Hudson Acquisition I Corp., a tech-focused SPAC, raised $60 million by pricing its SPAC IPO in line with the terms in its prospectus: 6.0 million units at $10.00 each. Chardan Capital Markets was the sole book-runner.
TenX Keane, an Asia-focused SPAC, also raised $60.0 million by pricing its IPO on Thursday night (Oct. 13, 2022) in sync with the terms in its prospectus: 6.0 million units at $10.00 each. Maxim Group LLC was the sole book-runner.
Hudson Acquisition I Corp. and TenXKeane Acquisition brought the SPAC IPO pricings so far this year to 83.
No traditional IPOs were priced this week. A handful of small-cap IPOs – initially set to price this week – moved over to next week’s IPO Calendar.
Bankers raised $323 million this week from just four deals – three SPAC IPOs and a tiny public offering done in connection with an NYSE-American uplisting from the OTC Pink Market.
Prime Time
The week’s biggest IPO news came from Prime Medicine Inc. (PRME proposed). The gene editing company filed its IPO terms – 8.9 million shares at $16.00 to $18.00 to raise $151.3 million – and landed on next week’s IPO Calendar. The IPO could give Prime Medicine a market cap of at least $1.6 billion, if it’s priced at the $17.00 mid-point.
J.P. Morgan, Goldman Sachs, Morgan Stanley and Jefferies are the joint book-runners of Prime Medicine’s IPO.
Eyes on Tech
Hudson Acquisition I Corp. is a tech-focused SPAC whose CEO is an alumnus of Peking University, along with some other members of its management team. The blank check company, however, made it clear in its prospectus that it will not enter into an initial business combination with any entity based in China, including Hong Kong and Macau, nor with any business with the majority of its operations in China.
New York-based Hudson Acquisition I Corp. will search for target companies involved in FinTech (financial technology), consumer technology, medical technology and advanced mobility technology. This SPAC is incorporated in Delaware.
Keen on Asia
Circling back to TenX Keane Acquisition, the SPAC says that it intends to shop for businesses in Asia with enterprise values between $200 million and $600 million.
TenX Keane, based in New York, says it will not enter into an initial business combination with any entity in China, including Hong Kong and Macau. TenX Keane is incorporated in the Cayman Islands.
Clean Energy in Mind
Spring Valley Acquisition Corp. II (SVIIU) priced its SPAC IPO on Wednesday night (Oct. 12, 2022). The clean energy-focused SPAC raised $200 million by pricing 20 million units at $10.00 each – in sync with the terms in its prospectus. It ranks #81 among SPAC IPOs priced so far in 2022.
Citigroup and Guggenheim Securities were the joint book-runners.
Spring Valley Acquisition Corp. II, based in Dallas, will look for acquisition targets in the alternative energy industry. Spring Valley II will search for target businesses involved in clean energy and storage, smart grid/efficiency, environmental services and recycling, mobility, water and wastewater management, and advanced materials and technology-enabled services, the prospectus says. Spring Valley II is incorporated in the Cayman Islands.
Shares of Spring Valley II opened Thursday (Oct. 13, 2022) at $10.08 on the NASDAQ and closed their first day of trading at $10.10.
Up from the Pink Market
Castellum, Inc. (CTM) weathered a rough time on its first day of trading on Thursday (Oct. 13, 2022) on the NYSE-American exchange. The company priced its tiny public offering on Wednesday night (Oct. 12, 2022) as part of its uplisting to the NYSE-American exchange from the OTC Pink market. The deal’s size was cut 71 percent in an SEC filing on Tuesday (Oct. 11, 2022). The public offering of 1.5 million shares was priced at the bottom of its $2.00-to-$3.00 range to raise $3.0 million. A 1-for-20 reverse stock split was expected to be effective as of the start of trading on Thursday, the company said in its pricing announcement.
Shares of Castellum opened sharply lower and closed Thursday on the NYSE-American exchange at $1.20, down 80 cents from their public offering price.
EF Hutton was the sole book-runner.
Based in Bethesda, Maryland, Castellum is an acquisition company that specializes in buying and developing businesses that provide U.S. federal, state and local government agencies with the following services: cybersecurity, information technology, intelligence analysis, electronic warfare, software and data analytics.
Third Week of October
For the week of Oct. 17, 2022, all eyes will be on Prime Medicine, Inc.’s IPO. That deal is among five names on next week’s IPO Calendar. Three deals are carry-overs from this week’s pricing roster: Intensity Therapeutics (INTS proposed), along with Alopexx, Inc. (ALPX proposed), and Beamr Imaging Ltd (BMR proposed). ASP Isotopes, Inc. (ASPI proposed), a micro-cap IPO, is also in next week’s lineup.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s 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.