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For the third week in a row, nearly every IPO that had been on the calendar the previous week has been rescheduled – most of them are on the slate for this week, but we’re already seeing casualties outright pulling their IPOs altogether (sorry WRNT, I guess even being a Network 1 Financial deal wasn’t enough).
I expect that by the end of the week, about half of the deals on the calendar get pushed back or cancelled, which is probably better anyway, since it will save us from trying to play deals that are most likely broken to begin with. On the upside, those that do make it to the gate, should have some positive momentum: either as a Stealth setup or perhaps even a company with genuine retail buzz/interest (we’re certainly more than overdue for one of those).
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This Week’s IPOs:
Nano Labs (NA) – July 12, 2022 | 1.77M Shares
Intelligent Living Group (ILAG) – July 13, 2022 | 5.06M Shares
Virax Biolabs (VRAX) – July 14, 2022 | 1.35M Shares
bioAffinity Group (BIAF) – July 14, 2022 | 1.5M Units
Treasure Global (TGL) – July 14, 2022 | 3M Shares
Wireless Devices (WDLS) – July 15, 2022 | 3.6M Shares
Onfolio (ONFO) – July 15, 2022 | 1.7M Units
AMTD Digital (HKD) – July 15, 2022 | 16M Shares
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Ok, Let’s jump in:
Nano Labs (NA) – July 12, 2022 | 1.77M Shares
Price Range: $11.35 – $11/51
Offering Size: $20M
Shares Outstanding: 53.67M
Industry: Semiconductors
Overview: This chip designer specializes in producing ASIC chips for high memory intensive applications such as crypto mining and gaming, specifically citing ‘metaverse’ utilization.
Considerations: They’ve cut the deal in half since this one was first scheduled for July 6, 2022 – when I first covered this I felt like the setup was a bit odd: they still have the 2-for-1 shares arrangement, so the float is more like 3.54M shares at a price of $5.75, but I’m hearing this one is oversubscribed, and have put in for an above average allocation request on WeBull to see what kind of fill I get on my order.
Here;s what I wrote last time:
”Had this company gone public as late as November 2021, the buzzwords associated with anything ‘crypto’ and ‘metaverse’, not to mention ‘microchips’, would have been enough to send it on a multi-day run off whatever debut it came to market with. But things have changed dramatically since then, with cryptos in full hibernation and everything ‘meta’ down significantly since the company formerly known as Facebook put fantasies straight out of Ready Player One into the spotlight. But that doesn’t mean this one should be ignored – the fact that it’s a Chinese company with a low float could be the sign of a stealth setup, although the lead underwriter has not proven that it can reliably deliver the kind of upside squeeze that we typically look for in Stealth setups (LIZI, EBON, MF, KUKE, OG) with secondary underwriters involved that are sort of hit-and-miss. Pricing the IPO up around the $10 mark also leaves quite a bit of room for it to fall off the debut, though given how many Stealth IPOs price at $4-5 only to debut at $15-25 or more, perhaps this could help prevent IPO allocation recipients from dumping prematurely.
This one is interesting enough to watch the debut indication and make a game-time decision from there as to whether I trade this off the debut once we see the volume and pre-debut indication price for the opening print. I will likely get some further insights into the availability of IPO shares prior to the debut, and will share that with Premium Members if before the launch if I can dig up some further information.
It’s also worth noting that this company reduced the size of it’s IPO from a target of $50M in June 2022 to the current size target of $37M – either they couldn’t fill the book at $50M and it’s not a Stealth play, or they decided they could run their shenanigans more easily with 3.5M shares instead of 5M shares.
BUT, it’s also worth noting that each ADS represented in the IPO represent two class A ordinary shares. So in effect, their F-1 is representing 7M shares at a price of $4.75 – $6.25.
It wouldn’t surprise me at all if some trading platforms have trouble with the ticker symbol being “NA” and simply list the stock as ‘Not Available’ (I’m looking squarely at YOU, WeBull).”
While I’m likely going to be tied up when this one debuts, I’ll have a close eye on it s a likely Stealth setup, and will try to play it off the debut if we see a healthy debut premium that’s not at a ridiculous level.
Growth Numbers:
– Revenue Growth: +1,958%% for 2021 vs 2020
– Gross Profits: -600% for 2021 vs 2020
– Gross Margin: -10% for 2021
Baseline Financials:
– Cash Flow: positive
– Net Income: negative – expanding
– Operating Profit: negative – exanding
Financial Summery: The financials are both dated, and as a Chinese manufacturer, subject to fairly large anomalies concurrent with COVID lockdowns, which continue to impact China’s manufacturing sector. This company has also indicated that the majority of sales to date have come from domestic markets, and that they intend to use the proceeds of this IPO to subsidies international expansion into the US market.
Still, these financials are pretty wild: with positive cash flow and quadruple revenue gains offset by negative gross profits and negative net income.
Link to the F-1: https://sec.report/Document/0001193125-22-185115/
Note from the F-1:
– “Nano Labs Ltd, an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Company”), proposes to issue and sell to the several Underwriters named in Schedule I hereto (the “Underwriters”) an aggregate of [3,540,000] Class A ordinary shares, par value US$0.0001 per share, of the Company (the “Firm Shares”) in the form of [1,770,000] American Depositary Shares”
So basically, the float will be 3.54M shares and the cost basis for IPO allocations will be around $5.75 depending on where they end up pricing the IPO.
Underwriters: AMTD Global Markets, Maxim Group LLC, and Tiger Brokers
IPO Classification: Mainstream IPO
Recent Similar IPOs: MF EBON KUKE OG
Trading Strategy: On the surface, we have to assume this has Stealth potential, and is therefore poised to get pumped at some point. What makes this one tricky is the way they have structured the ADS as a ‘two-for-one’ deal, as this effectively doubles the float while maintaining a limited number of shareholders. One might expect the debut price to be half of the IPO price, but if this ends up being a Stealth setup, even a debut of double the IPO price would not be abnormal.
At first I was hesitant to play this one, and I may simply be too busy in the moment this one goes live to actively buy the debut, but I’ve warmed up to this deal as a potential ripper that I would expect to debut at a premium and run if it’s not priced out of the ballpark on the opening print.
Brand Name Recognition: Low.
Debut Trade Conviction Level: High
My Allocation Request: I’ve put in for a larger-than-minimal allocation request through WeBull on this one, but see no point in going further than the $500 limit simply because I shouldn’t get more than $100 or so worth of stock allocated if it’s a good deal, and don’t want to get stuck with more than $500 if they end up dumping full allocations on us.
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Intelligent Living Applications (ILAG) – July 13, 2022 | 5.06M Shares
Price Range: $5.00
Offering Size: $25M
Shares Outstanding: 18.06M
Industry: Hardware
Overview: This company sells locks manufactured in China.
Considerations: This is a Chinese company underwritten by Network 1 Financial. Historically, almost every Chinese IPO debuted by this underwriter has either opened at ridiculous premiums or opened at very high premiums and run to the moon over 1-2
days. Until that pattern breaks, I’ll keep asking for relatively healthy allocations.
You wanna look at their financials and a breakdown of the F-1? Be my guest, but as far as I’m concerned, the question is simply whether this is a Stealth IPO setup or not: and when It’s Network 1 Financial and a 5M@$5 offering, it’s not one I want to miss.
Ok, we’ll do the breakdown:
Growth Numbers:
– Revenue Growth: -22% in 2019 vs 2018
– Gross Profits: +14% in 2019 vs 2018 (on 10% GM)
– Gross Margin: 10% for 201
Baseline Financials:
– Cash Flow: negative
– Net Income: negative
– Operating Profit: negative
Notes from the F-1:
Underwriters: Network 1 Financial
IPO Classification: Stealth IPO
Recent Similar IPOs: OST GSUN
Trading Strategy: Like all potential Stealth IPO setups, the first thing I’m looking for is confirmation that it’s getting pumped in the pre-debut imbalance period: for an IPO priced at $5, I’m looking for a debut premium in the $8 – $17 range or so, with opening volume around 100k shares. A debut price lower than that makes me think it’s not a Stealth setup afterall, and any higher than that and it’s too risky to play the debut. We’ve seen recent Stealth setups open in the $19 – $25 range (TOP and GSUN), and then dip down before rebounding. It’s pretty hard to call the bottom on these, and there have been some that never really bounced, so it’s definitely a riskier trade, but if we do get an open above my range of comfort on the debut, I may try to pick off a reversal with a partial entry around $17 with a double-down around $13, though I’ll keep my risk limited if it comes to that.
Brand Name Recognition: Low.
Debut Trade Conviction Level: Moderate.
My Allocation Request: Full.
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Virax Biolabs (VRAX) – July 14, 2022 | 1.35M Shares
Price Range: $5.00
Offering Size: $6M
Shares Outstanding: 11.4M
Industry: Diagnostics
Overview: This company is primarily involved in the sales and distribution of diagnostic test kits and PPE devices with operations in the UK, Hong Kong, and Singapore.
Considerations: They’ve pushed this one back from July 6, 2022, and while an ultra-low float IPO with connections to Hong Kong and Singapore underwritten by Boustead would have been a red-hot setup even a few months back, at this point the Boustead name has been tarnished by less-than-spectacular debuts in VINE, HTCR, and ASNS… they need to bring a winner to market to re-establish interest in their ability to deliver pops off the debut, but I’m not hearing much positive sentiment from the street.
Here’s what I wrote earlier in the month:
”Another company that would have been a lock to blow up off their debut had they IPO’d at the height of the pandemic – but with an ultra-low float and an underwriter that pretty much wrote the book on Stealth IPOs but has struggled to deliver a substantial runner over the past couple of months, it seems this one could be poised to offer an ideal setup for a series of halts to the upside (provided that it doesn’t debut above my risk tolerance level). Given the underwriters and the scope of the company, this one either is a Stealth setup, in which case I watch for an entry opportunity, or it’s not, and can’t be touched until it bottoms out for either a short-term reversal or LPX play.
The company states several potential near-term catalysts in their Prospectus, including approvals for their ViraxClear Covid-19 test in Q2 2022, and commencement of sales of their ViraxCare AI-powered Sanitizing Bot in Q3 2022.
The potential for them to trigger runs on such a low float with ‘fluffy’ news is highly likely, so if this one consolidates down in the $1 bin, it’s a prime target for an LPX play.”
So most of that still holds true, but I do wonder how badly Boustead can afford to mess up another IPO, and with just 1.35M shares and direct ties to Asia, it seems like this one could still sneak in as a Stealth Setup. I’ve put in for a minimal allocation request on WeBull, and will watch the pre-debut indication for clues as to what this might actually do on the debut: when everyone else is sleeping on a play, that’s when we could get the best opportunities to get in before the rip. Just be careful, because the prevailing sentiment is decisively not positive on this one.
Growth Numbers:
– Revenue Growth: +23% for 12 months ending March 31, 2021
– Gross Profits: -500% for 12 months ending March 31, 2021
– Gross Margin: -7% for 12 months ending March 31, 2021
Baseline Financials:
– Cash Flow: negative
– Net Income: negative
– Operating Profit: negative
Financial Summery: The financials are dated, and don’t really represent the path forward for this company, so I don’t think they play a major factor in assessing the setup for this stock. It’s not a company to invest in – this is a day trade at best.
Link to the F-1: https://sec.report/Document/0001213900-22-035012/
Note from the F-1:
Underwriters: Bousted Securities
IPO Classification: Stealth IPO
Recent Similar IPOs: OST JCSE GSUN
Trading Strategy: This should be a Stealth setup – priced at $5, debuts anywhere from $10 to $25 or more. I’ll be adhering to my risk limits on the debut, and will draw a line somewhere in the $15-20 range depending on the volume lined up to trade on the opening print. Any higher than that, and I don’t see enough upside potential vs downside risk. I’d be pretty surprised to see a debut premium is below $6, and will watch for a dip-reversal if that happens, but seeing how little upside was offered by Boustead’s ASNS and HTCR IPO debuts, it may be better to lay off and wait for a drop down to the $1 bin and then accumulate in anticipation of an eventual rally.
Brand Name Recognition: Low.
Debut Trade Conviction Level: High.
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bioAffinity Technologies (BIAF) – July 14, 2022 | 1.5M Units
Price Range: $6.75
Offering Size: $10M
Shares Outstanding: 7.5M
Industry: Biotech
Overview: This is a diagnostics company focusing on non-invasive diagnosis of early-stage lung cancer and other lung diseases. They are per-revenue, and their lead diagnostic test is slated for FDA submission in Q3 2022, and expected to take 2-3 years.
Considerations: BIAF has been rescheduled again and again since the first week of June, and I’d be surprised if they don’t pull it or push it back again. I don’t plan on playing it one way or the other – looking for the Stealth setup and this doesn’t look like it.
Here’s what I wrote before:
”This one doesn’t have anything particularly enticing about it, the price point at $6.75 offers plenty of downside, as it likely comes down to the $2 zone as demand disappears once the IPO concludes; the Units mean there are warrants issued alongside the common shares in the offering and almost guarantees a debut below the IPO price; and the underwriter has not sponsored an IPO in the past 12 months. Ostensibly, short term catalysts tied to the company’s lead candidate seem to be relatively distant in the future. Having said that, when it’s ultra-low-float, and it appears bad on the surface, any kind of manipulation in the trading volume could produce volatility: as we saw with HSCS last week, the Day 2 runner can emerge at any moment: particularly when we least expect it, so I’ll at least be keeping watch on this one, albeit from the corner of my eye. In the near-short term, say 180 days, there are some potential catalysts as it aims to proceed with commercialization of its lead candidate “as an LDT under the CLIA program administered by the Centers for Medicare and Medicaid Services”… so with a microscopic float, any positive headline could trigger a run to the exercise of the warrants (see below in the S-1 notes).”
Growth Numbers: none: it’s pre-revenue
Baseline Financials: with no revenue, they’re all negative.
Notes from the S-1:
– 14 of our current stockholders have indicated an interest in purchasing Units in this Offering and we currently anticipate they may purchase approximately 6.2% of the Units in this Offering not assuming the exercise of the Over-Allotment Option
Actually, this is kind of rare, and since they already control 46% of the voting power of the common stock, the float is likely to be restrained.
– Having completed the CLIA analytical validation, Precision Pathology is offering the CyPath® Lung test for sale with a controlled rollout beginning in Texas, which we anticipate will require six months, before expanding throughout the Southwest region of the U.S. through the first half of 2023. After establishing CyPath® Lung in the Southwest market, the laboratory will expand sales in 2023 to additional states with plans to market the test nationwide.
This aligns very nicely with a 180-day LPX, and warrant EP of 120% of the IPO price, ($8.10 based on the IPO price of $6.75). Keep that in mind if you want to pick this up on any pullbacks prior to LPX.
Underwriters: WallachBeth Capital
IPO Classification: Low Float Biotech (aka “Biotech Bust”)
Recent Similar IPOs: HSCS (and not TNON… at least I can’t expect it to do what TNON did, which turned out to be akin to a Stealth IPO setup and was priced substantially higher that this one.
Trading Strategy: I’ll be watching this one with no intention of playing it unless:
A) we see a significantly low volume on the opening print with a significant debut premium.
or
B) it tanks as hard as HSCS on Day 1 and falls throughout the day with no real reversal. So basically, it would have to fall below $2.00 into the close of the market, and then I’d take a flier on a possible Day 2 rally.
A better play would be to avoid the IPO altogether and set a reminder on your calendar for the 90 day and 180 LPX moves: consider building a position into these dates and hold for a spike on some form of contrived PR.
Brand Name Recognition: Low.
Debut Trade Conviction Level: Low
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Treasure Global (TGL) – July 14, 2022 | 3M Shares
Price Range: $4.00 – $6.00
Offering Size: $12M
Shares Outstanding: 16.42M
Industry: Financial Discounts App
Overview: This company has developed an app that is primarily used in Malaysia for offering rebates and affiliate payments for online-to-offline transactions.
Considerations: This one has me a little bit suspicious that there’s some potential for a Stealth-like movement, though it’s an S-1 filing and EF Hutton has not brought us a definitive winner wince the HOUR debut at the beginning of the year. However, it does have ties to Asia, the growth numbers, at least on paper, are absurdly positive (even if not all that meaningful). I’m willing to take a shot on this one for a minimal allocation request on WeBull and am testing out my trading desk with EF Hutton for a slightly larger allocation (supposedly there have been some inquiries by institutional investors into this deal: so if there were to be a substantial anchor investor in the deal, shares could get tied up rather quickly).
Growth Numbers:
– Registered User Gowth: +164% for 9 mos ending 3/31/2022
– Revenue Growth: +15,000% for 9 mos ending March 31, 2022
– Gross Profit: +14,000% for 9 mos ending March 31, 2022
Baseline Financials:
– Cash Flow: negative
Notes from the S-1:
– The fact that this one is an S-1 at all, rather than an F-1, gives me pause as to whether this ends up being a Stealth IPO setup. That doesn’t mean it couldn’t run on low volume and a large anchor investor tying up the float.
Underwriters: EF Hutton
IPO Classification: Not really sure how to classify this one – definitely low float with Stealth potential
Recent Similar IPOs: HOUR
Trading Strategy: I kind of think this one might move like HOUR, though the float is substantially larger: I don’t expect a substantial debut premium like we see in most Stealth Setups – what I’m looking for is a slight debut premium, say $0.50 – $1.00 and a run that gradually materializes throughout the day. Possibly a dip-to-rip setup, so to the extent that I plan to play this one, I will be watching the debut and entering any new positions in small doses to ladder in, with the expectation that this reverses once the low float kicks in. If it debuts below the IPO price, I’ll simply bag-hold my allocation and wait for LPX to offload if we don’t get a Day 2 run.
Brand Name Recognition: Low.
Debut Trade Conviction Level: Moderate.
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Wearable Devices (WLDS) – July 15, 2022 | 3.6M Shares
Price Range: $5.20 – $7.20
Offering Size: $0M
Shares Outstanding: 14.84M
Industry: Wearable Technology
Overview: This Israeli-based company makes a wrist-worn (bracelet) that senses nerve and muscle movements (“Surface Nerve Conductance”) in the wrist to determine finger actions to deliver an electronics control system with potential metaverse/virtual reality applications, as well as remote industry, robotics, smart home, and sports analytics applications. It’s also available for the iWatch, so it’s does have integrations with devices that are already well positioned in the marketplace.
Considerations: Rescheduled a few times going back to March 2022, this one is trying to get to the public markets to fund development of it’s Apple iWatch wristband.
Here’s what I wrote back in June”
”This actually sounds pretty frickin’ cool, but while gimmick along may have worked in the low-float IPOs of 2020 and 2021, this company seemingly just missed the ‘metaverse-hype’ craze that sent RBLX up to $140+ and MMTR as high as $37 in late November 2021 (they currently trade at $26.87 and $4.12 respectively). As far as strong IPO debuts driven purely on the trend and story behind the premise of the company, we haven’t really seen one deliver upside gains off the debut since LITM gave us an opening run from an open at $11.50 to a high at $18.40 on the premise of being a lithium miner (it now trades at $3.24).
While this company does deliver impressive growth numbers in terms of %, the real numbers themselves are rather small ($107k revenue in the 6 months ending June 30, 2021), and as futuristic as their technology sounds, I’m not sure the market is going to get overly excited about grabbing a piece of this company right out of the gate.
Bear in mind that recent high-tech IPOs out of Israel have not performed particularly well either: with MTEK and to a lesser-degree: SVRE each providing ample opportunity to lose money off their debuts.”
I’m not sure if I just really want an IPO to run purely on low-float and cool story, but I just don’t sense any real buzz around this one yet, and until we have an IPO that gets some coverage in other mainstream media and generates some meaningful social buzz, I can’t justify trying to play a debut trade on this one. If we do get some hype around this one before Friday’s launch, and there’s a decent buy-side imbalance in the pre-debut imbalance, I could be convinced to give this one a shot as a debut trade. Otherwise, I look forward to picking this one up going into the 90-day LPX and being in position to capitalize on their announcements related to development progress on their iWatch enabled product.
Growth Numbers:
– Revenue Growth: +214% for 6 months ending June 30, 2021
– Gross Profits: +233% for 6 months ending June 30, 2021
– Gross Margin: 93% for 6 months ending 31, 2021
Baseline Financials:
– Cash Flow: negative – improving
– Net Income: negative – improving
– Operating Profit: negative – improving
Notes from the F-1:
– A significant amount of the funding from the IPO will go directly towards manufacturing and marketing their “Madura Band” for the Apple watch. Which is pretty encouraging IF this product catches on, but not really a factor that can be assumed as fact at the time of their IPO.
This also reminds me that we’re in the midst of a serious supply-chain crisis, and the likelihood of production delays seems almost certain.
Underwriters: Aegis Capital
IPO Classification: Low Float IPO
Recent Similar IPOs: MTEK SVRE
Trading Strategy: I don’t see this one doing particularly well off the debut: we just haven’t seen anything run off the opening print on story alone, and the float isn’t that microscopic in comparison to the sub-2M float debuts we’ve had recently. It’s been on-and-off-again for a few weeks now, and is still available for pre-order on WeBull, so I’ll be leaning towards the sidelines on this one, but admittedly could be swayed into taking a play on this one if I sense some hype along with a buy-side imbalance and modest debut premium going into the opening print.
Brand Name Recognition: Low.
Debut Trade Conviction Level: Low.
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Onfolio Holdings (ONFO) – July 15, 2022 | 1.7M Units
Price Range: $4.50 – $5.50
Offering Size: $15M
Shares Outstanding: 12.92M
Industry: Websites
Overview: This company acquires and manages cash flow positive websites in several industry verticals with 38 websites in their portfolio. They claim to generate over 4M monthly visits across their network, and from a list of case studies published on their website covering companies they decided NOT to buy-out, it seems they find target companies on website flipping platforms, and are considering some companies with less than $100k in annual revenue. The offering is for ‘units’ that consist of one share of common stock and two warrants.
Considerations: Rescheduled again and again – my guess for this week is, “again.”
Here’s what I wrote before:
”First off… two warrants?! Few IPOs have done well off the debut with just one warrant, let alone two warrants, and these are both redeemable at the IPO price, so there’s little chance that this runs much higher than the IPO price before warrant holders start dumping their shares. The company itself is not exciting: basically a bunch of relatively small websites that, individually, would be nowhere near IPO consideration, yet packaged together, somehow justify publicly listing this company on the NASDAQ.
The IPO should basically allow them to go buy even more websites to add to their stable of web properties, though they claim to not have any specific targets in mind. They also haven’t really demonstrated much skill in improving the performance of the websites they’ve purchased, as their growth numbers and baseline financials appear to be universally headed in the wrong direction.
I almost wonder why they’re even doing an IPO.”
There’s just nothing I like about this one, so if I’m wrong, ok, doubt it will affect my trading strategy going forward one way or another. If I had to pick one stock that would again delay their listing this week, this would be my top pick, followed by BIAF.
Growth Numbers:
– Revenue Growth: -25% for 3 months ending March 31, 2022
– Gross Profits: -44% for 3 months ending March 31, 2022
– Gross Margin: 42% for 6 months ending 31, 2021
Baseline Financials:
– Cash Flow: negative – getting worse
– Net Income: negative – getting worse
– Operating Profit: negative – getting worse
Notes from the S-1:
– “As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to be received upon the completion of this offering.”
So basically, you just want some money from investors for the hell of it, and don’t really have any specific plans on what you’re going to do with it, right?
Onfolio: Yeah, that’s about it. but in the meantime,
”Pending the use of the net proceeds of this offering, we intend to invest the net proceeds in short-term investment-grade, interest-bearing securities.
I hope it’s not going into one of those BitCoin services that pays interest on your holdings.
Underwriters: EF Hutton
IPO Classification: Low Float IPO
Recent Similar IPOs: HOUR (sorta, but not expecting this kind of run) CISO (but like, not really – just another company that acquired a bunch of other smaller companies, except at least CISO was in a hot sector in cybersecurity).
Trading Strategy: With 2 warrants involved, an EP at 100% of the IPO price, and being offered on WeBull, I don’t see how this offers even the hope of any upside.
Brand Name Recognition: Low, but maybe some of the websites they own have limited brand recognition.
Debut Trade Conviction Level: Low.
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AMTD Digital (HKD) – July 15, 2022 | 16M Shares
Price Range: $6.80 – $8.20
Offering Size: $120M
Shares Outstanding: 185M
Industry: Digital Banking
Overview: Digital bank in Hong Kond
Considerations: This one has also been perpetually rescheduled since June… June 2021 that is, making it the most prolific repeat offender on this list of habitually rescheduled IPOs. Perhaps due to ongoing concerns related to Chinese financial regulations, especially in terms of US listed IPOs, this one was forced to wait for conditions to normalize before going public. Interestingly, the parent company of this subsidiary, is also the parent company of the underwriter for Nano Labs (AMTD Global Markets)… so while they are not permitted to underwrite their own IPO, they should have some insights as to how they should handle their debut launch so as to avoid an embarrassing IPO. Back in June 2021, this was available for allocation request on WeBull – this time around they are not offering retail traders any shares, and with less than 10% of the total shares outstanding being offered in the IPO, as a mainstream IPO, this one is relatively ‘low float’.
Financials”:
– Revenue Growth: +17% for fiscal year ending April 2021
– Net Profit: +65% for 10 months ending 2/28/2022
Notes from the F-1:
Underwriters: Maxim Group and Livermore Holdings Ltd
IPO Classification: Mainstream IPO
Recent Similar IPOs: None come to mind. Chinese but not Stealth.
Trading Strategy: Hard to call it this far out, I’ll send out a mid-week update if I hear anything encouraging. Certainly interesting, and may come down to a game-time decision for me: buy-side imbalance with low volume could be a positive setup indication. There was a time when all Chinese IPOs ran off the debut, even the non-low floaters, so if they end up taking this live, I suspect they may be confident of delivering a winning performer.
Brand Name Recognition: Moderate.
Debut Trade Conviction Level: Moderate.
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