December is off to a quiet start. Just three deals are on the IPO Calendar. The new face on the IPO runway belongs to SONDORS (SODR proposed). It’s the first electric bike maker to go public. The other two deals – Bullfrog AI Holdings (BFAI/ BFAIW proposed) and Erayak Power Solution Group Inc. (RAYA proposed) – are carry-overs from last week.
This light December line-up follows an exceptionally slow November. Just four IPOs got done. No IPOs were priced during the past two weeks.
The IPO market usually winds down for the holidays around Dec. 15 to Dec. 20. This year, it looks like a half dozen or so deals may get done before IPO bankers call it a year.
The U.S. stock market’s latest bout of volatility may prompt some IPO bankers and their clients to hold off until the new year.
The NASDAQ’s increased scrutiny of small-cap IPOs is the main reason, though, for the slower pace. The NASDAQ is requiring bankers to submit indications of interest for review, especially if a company has ties to China. The goal is to prevent the wild post-IPO swings seen this summer in a number of Chinese or Asian deals.
If all three of this week’s IPOs get priced, bankers will raise $42.9 million. That’s a far cry from last December when IPOs were wrapping up a record year. Bankers raised $2.3 billion in one torrid night alone – specifically, Dec. 14, 2021.
As the first full week of December 2022 gets under way, it’s important to keep in mind that anything can happen in the countdown to pricing an IPO.
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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