The IPO Buzz: Jayud Global Logistics (JYD) Ends Up 26 Percent After Moonshot in NASDAQ Debut

Jayud Global Logistics Ltd. (JYD) stock gained 26 percent to close at $5.04 – up $1.04 from its IPO price – after scoring a moonshot in its NASDAQ debut today (Friday, April 21, 2023). Before noon, Jayud Global’s stock had jumped 147.5 percent. The stock shot up to $9.90 – up $5.90 from its $4.00 IPO price at 11:22 a.m. EDT – and landed well into the moonshot zone.  A moonshot occurs when a stock gains 100 percent or more from its IPO price in its first day of trading. The opening tick showed that Jayud Global’s debut was off to a good start. Jayud Global’s stock opened at $5.26 – up $1.26 or up 31.5 percent from its IPO price – at 10:45 a.m. EDT today. Volume for Jayud Global’s first day of trading was about 5.5 million shares. (Editor’s Note: This column, published early Friday, was updated throughout the day with details on Jayud Global’s NASDAQ debut and Ares Acquisition II’s NYSE debut.)

The Chinese supply-chain logistics solution provider priced its slightly downsized micro-cap IPO at $4.00 – the low end of its $4.00-to-$5.00 range – to raise $5.0 million on Thursday night (April 20, 2023). The number of Class A ordinary shares was cut to 1.25 million – down from 1.5 million in the prospectus. The Benchmark Company was the sole book-runner. The stock in Jayud Global’s IPO was offered by the Cayman Islands holding company – and not by the underlying Chinese business. 

Ares Acquisition II Prices Upsized SPAC IPO

A SPAC IPO – Ares Acquisition Corp. II (AACT.U) – made its debut today on the New York Stock Exchange. Ares Acquisition II upsized its SPAC IPO at pricing on Thursday night (April 20, 2023) to raise $450 million: The deal’s size was increased to 45.0 million units – up from 40 million units in the prospectus – at $10.00 apiece. Each unit consisted of one share of common stock and one-half warrant. Citigroup and UBS were the joint book-runners.

Ares Acquisition II’s stock opened at $10.07 today (Friday, April 21, 2023) on the NYSE, hit a session high at $10.08, and closed at $10.07 – up 7 cents or 0.7 percent.

The Ares Acquisition II deal is the 12th SPAC IPO priced so far in 2023 – and the first SPAC IPO priced in the second quarter. Citigroup and UBS were the joint book-runners. The New York-based SPAC will search for potential acquisition or business combination targets in North America, Europe and Asia.

Money in the Supply Chain

There’s money in keeping the supply chain running smoothly. Jayud Global Logistics Ltd., based in Shenzhen, China, is profitable, according to the prospectus. The company earned net income of $2.68 million on revenue of $129.16 million for the year ended June 30, 2022. Jayud Global Logistics ranked fifth in terms of 2021 revenues generated from providing an end-to-end cross-border supply chain solution among all in this segment in Shenzhen, according to the Frost & Sullivan Report.

The company owns logistics facilities strategically located throughout major transportation hubs in China and globally. As of June 30, 2022, Jayud Global Logistics had established a presence in 12 provinces in mainland China, as well as in some major global transportation hubs such as Hong Kong.

“Our global freight network covers various major trade lanes across the world, including Asia-North America, Asia-Europe and Intra-Asia trade lines,” the prospectus says. “As of June 30, 2022, our footprints spread across six continents and over 16 countries, such as Thailand, Singapore, India, the Philippines, Hamburg (Germany), the United Kingdom and the United States.”

(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. 

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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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