The IPO flow remains slow with an abbreviated week due to the Juneteenth holiday.
Last Wednesday, the Federal Reserve skipped a rate hike after 10 increases dating back to March 2022.
The rate hike halt provides essential breathing room for investors amidst concerns about inflation.
However, the central bank may hike rates later this year. Half the committee anticipates rates will increase another half-point.
Matt Kennedy, the Senior IPO Market Strategist for Renaissance Capital, stated last week on CNBC’s “ETF Edge,” “We do see a light at the end of the tunnel. All the pieces are finally in place for pickup in the second half.”
Tech investment opportunities are at the forefront with 54 percent of US IPOs referencing AI in their prospectuses in the year-to-date. This week’s offerings include a green pesticide company and a digital marketing provider.
Green Pesticides to Grow Green Products
Med-X (MXRX) has an estimated IPO date of June 21 and seeks to raise $8.5 million at a nearly $21.5 million market cap. Founded in 2014 and based in the United States, Med-X supplies environmentally friendly health and wellness products to pest control and other industries under the trade names Thermal-Aid, Nature-Cide, and Malibu Brands. The Nature-Cide products are essential oil blends used for indoor and outdoor pesticides, developed for industries like hospitality, turf care, vector control, janitorial, school districts, and agriculture including the hemp and cannabis industries.
The company booked $1 million in revenue for the year ended June 30, 2022. The joint bookrunners on the deal are EF Hutton and Craft Capital Management.
The Face of the Alcoholic Beverage Space
LQR House (LQR) announced terms for its IPO on June 15 and intends to raise $5 million at an estimated $56 million market cap. Founded in 2021 and based in the United States, the company provides brand development and digital marketing in the alcoholic beverage space. LQR House has a partnership with Country Wine & Spirits (CWS) holding the rights for all marketing elements, and the exclusive CWS influencer network acts as LQR affiliates. LQR House has also established a wine club and developed limited batch spirit brands.
LQR House booked $1 million in revenue for the year ended March 21, 2023. EF Hutton is the sole bookrunner on the deal.