The IPO Buzz: China’s QuantaSing On Tap in Short MLK Holiday Week

QuantaSing Group Limited (QSG proposed) is the name to note on the IPO Calendar for this short holiday week. It’s one of three companies set to go public after Wall Street gets back to work on Tuesday (Jan. 17, 2023).  The U.S. stock market was closed Monday (Jan. 16, 2023) for the MLK, Jr. holiday, the federal holiday honoring the birthday of Rev. Martin Luther King, Jr., the slain U.S. civil rights leader.

QuantaSing, China’s largest online service provider for adult learners, is going public via the small-cap IPO of its holding company, which is incorporated in the Cayman Islands. The IPO is expected to price on Thursday night (Jan. 19, 2023) to start trading on the NASDAQ on Friday (Jan. 20, 2023). QuantaSing’s IPO consists of 3.25 million American Depositary Shares (ADS) at $11.50 to $13.50 to raise $40.63 million. 

Citigroup and CICC are the joint book-runners. They launched QuantaSing’s IPO late Friday, after the U.S. stock market’s close. Tiger Brokers, CLSA and Univest Securities are the co-managers.

For the fiscal year ended June 30, 2022, QuantaSing had about 1.1 million paying learners, representing a 37.5% increase from 0.8 million for the fiscal year ended June 30, 2021.

But that jump in paying customers has not translated into profits.

Red ink runs across QuantaSing’s balance sheet. QuantaSing reported a net loss of US$32.8 million on revenue of US$403.2 million for the fiscal year that ended June 30, 2022.

Circle Thursday Night

Two other micro-cap IPOs are also set for pricing on Thursday night (Jan. 19, 2023) to trade on Friday (Jan. 20, 2023):

  • Bullfrog AI Holdings (BFRG/ BFRGW proposed) – The biopharma AI and machine learning platform is planning a unit IPO of just 1.32 million units at $6.50 to raise $8.56 million. This deal is a carry-over from last year. WallachBeth Capital and Kingswood Capital Markets are the joint book-runners.
  • Lucy Scientific Discovery Inc. (LSDI proposed) – The Canadian psychotropic drug R&D company = and drug manufacturer – is  planning an IPO of only 2 million shares at $4.00 to raise $8.0 million. WestPark Capital is the sole book-runner.

Both IPOs are NASDAQ listings.

 Bankers expect to raise $57.2 million if all three IPOs get priced this week.

More names could slide onto the IPO Calendar early Tuesday morning after the SEC rolls up the blinds on its filing window following the long holiday weekend.

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.

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