The IPO Buzz: JE Cleantech Defies Gravity in Earth Day Debut

Singapore-based JE Cleantech Holdings Limited (JCSE) took off like a rocket in its NASDAQ debut on Earth Day (Friday, April 22, 2022). Shares of JE Cleantech shot up over 370 percent on Friday afternoon in their first day of trading on the NASDAQ – surging to $18.84 from their IPO price of $4.00. JE Cleantech’s stock closed on Friday at $19.00, up 375 percent from its IPO price. This deal is among only three IPOs, including one SPAC, priced during Easter week.

Bankers raised $124.42 million this week from three deals. Most of that volume came from Yotta Acquisition Corp. (YOTAU), a SPAC that raised $100 million. Chardan was the sole book-runner for the Yotta deal. Yotta became the 58th SPAC IPO priced so far in 2022.

JE Cleantech’s IPO raised a total of $15 million. But the company will receive only $12 million of the proceeds from the 3 million shares that it offered in the IPO at $4.00 apiece. A selling stockholder offered another 750,000 shares of stock in JE Cleantech’s initial public offering and reaped $3 million in proceeds.

ViewTrade Securities was the sole book-runner for JE Cleantech’s IPO.

In contrast, the underwritten public offering of Aclarion, Inc. (ACON and ACONW) – a unit offering priced in connection with Aclarion’s NASDAQ uplisting from the OTC – did not fare well on Day 1. Aclarion’s units – stock and warrants – were priced at $4.35 per unit – below the bottom of its $4.50-to-$6.50 price range. Each unit consisted of one share of common stock and one warrant to buy one share of stock.

Aclarion’s public offering was cut three times before it was priced.

By early Friday afternoon, Aclarion’s stock was trading on NASDAQ at $2.27, down 47.7 percent from its public offering price of $4.35. Aclarion’s stock closed on Friday at $2.72, down 37.33 percent from $4.35, its public offering price. 

Aclarion raised $9.42 million by selling 2.165 million units, more than the 2.0 million units in the prospectus.

Maxim Group was the sole book-runner for the Aclarion deal.

Up, Up and Away

JE Cleantech, founded in 1999, is profitable. For the 12 months ended June 30, 2021, the Singapore company earned $1.03 million in net income on revenue of $17.5 million.

Industrial dishwashing systems used by restaurants, food courts in shopping malls, hospitals and eldercare facilities, are among JE Cleantech’s products. The company also makes robots and other cleaning equipment to clean trains.

Pain in the Tuchus

Aclarion, founded in 2008, is a healthcare tech company focused on improving the outcome of surgery for patients with pain in their lumbar spine – the lower vertebrae known as L-1 to L-5. The company uses Magnetic Resonance Spectroscopy (MRS) and a proprietary biomarker to optimize clinical treatments.

The San Mateo, California-based company says its technology is intended to help surgeons determine the optimal surgical procedure for a patient with pain in their lumbar spine. Aclarion intends to add additional applications of its technology to target the management of low back pain patients from the point of initial MRI through resolution of their problem, according to the prospectus.

The total addressable U.S. market for patients with low back and neck pain is about $134.5 billion, according to an article published in 2020 by JAMA (the Journal of the American Medical Association), according to Aclarion’s prospectus.

April’s Final Week

A handful of small-cap IPOs are likely to get priced during the last full week of April. But the IPO Calendar could pick up some more names on Monday morning after Wall Street gets back in the swing of things after the holidays. Many market participants have stayed out of the office – actual or virtual – this week due to the holidays. This week marks the convergence of Easter Sunday on April 17th, the celebration of Passover this week and the observance of Ramadan as well. Schools across the country have been on spring break this week as well – and that has also kept some Wall Street pros out of the office.

Traffic at the SEC’s filing window has been fairly brisk during the spring holiday break.

Stay tuned.

(For more information about these companies, please check the IPO Calendar. Click on a company’s name and the hyperlink will take you to the company’s IPO Profile, which includes a link to the prospectus.)

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Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The 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 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 change.