GigaCloud Technology (GCT) shares soared 73.22 percent in their NASDAQ debut today – touching an intraday high of $21.22, up $8.97 from their $12.25 IPO price. The flight took off at the opening trade. GigaCloud Technology shares opened at $19.20 on Thursday (Aug. 18, 2022). At the first tick, the stock was up $6.95 or 56.73 percent from its IPO price. GigaCloud Technology, a global B2B ecommerce platform for home appliances and other big items, increased the size of its IPO and priced it at $12.25 – the top of its $10.25-to-$12.25 range – on Wednesday night (Aug. 17, 2022). A total of 2.94 million Class A ordinary shares were priced, up from 2.45 million shares in the prospectus. The IPO raised $36 million. (Editor’s Note: This column, published Thursday morning before the opening bell, was updated throughout the day with GigaCloud trading news.)
By midday, GigaCloud’s stock had lost some altitude but was still up about 22 percent at $14.98. At the closing bell, GigaCloud’s stock was at $15.69 – up $3.44 or 28.08 percent from its $12.25 IPO price – on volume of 11,424,983 shares.
GigaCloud’s IPO broke away from this summer’s trend in three ways:
-Its IPO price of $12.25 was more than twice the prevalent range of $4.00 to $5.00,
-The deal was priced at the top of its range – a pivot away from several recent deals priced at the low end or the mid-point, and
– The pricing was moved up a day.
Aegis Capital was the sole book-runner.
GigaCloud Technology, based in Hong Kong, says it is a pioneer of global end-to-end B2B ecommerce solutions for large parcel merchandise, including home appliances, furniture and fitness equipment. The company launched its B2B ecommerce platform, the GigaCloud Marketplace, in January 2019 with furniture sales, and later added major home appliances and fitness equipment.
GigaCloud Marketplace “seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency,” the prospectus says.
The company’s profitability appealed to IPO investors. GigaCloud Technology reported net income of $29.3 million on revenue of $414.2 million for the year ended Dec. 31, 2021, according to the prospectus.
One IPO Pricing Thursday Night
One tiny biotech IPO is set for pricing Thursday night (Aug. 18, 2022) to trade Friday on the NASDAQ:
PaxMedica (PXMD proposed), an early clinical-stage biotech focused on developing an autism treatment, plans to price its IPO of 1.55 million shares at $4.50 to $6.50 to raise $8.5 million.
Craft Capital Management and R.F. Lafferty & Co. are the joint book-runners.
PaxMedica is developing and testing its lead program, PAX-101, an intravenous formulation of suramin, to treat autism spectrum disorder (ASD). In February 2021, the company announced positive topline data from its Phase 2 dose-ranging clinical trial evaluating PAX-101 to treat the core symptoms of ASD, the prospectus says. The company, founded in 2018, is based in Tarrytown, N.Y.
According to the prospectus, PaxMedica has generated no revenue so far. The company is not profitable.
Looking Back and Ahead
Next week, just one small-cap IPO is on the IPO Calendar so far.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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