Microcap IPO flow is increasing as July ends, with five companies on the calendar.
The Federal Reserve last week approved an expected quarter-point interest rate hike, taking benchmark borrowing costs to 5.5% — the highest level in over 22 years.
Chairman Jerome Powell said during his press conference, “Inflation has moderated somewhat since the middle of last year, nonetheless, the process of getting inflation back down to 2% has a long way to go.”
The annual inflation rate for the United States was 3% for the 12 months ended June 30, according to U.S. Labor Department data published July 12.
Upcoming microcap IPOs include a luxury car seller, personal care tech company, an online gym and retailer, a theme park toy designer, and a Pakistan esports marketing company.
Cheetah Sells Import Luxury Cars
Cheetah Net Supply Chain Service (CTNT) had an original estimated IPO date of June 29, intending to raise $10 million at about a $52 million market cap. The company now has an estimated IPO date of July 31 and seeks to raise about $6 million at about a $48 million market cap. Founded in 2016 and based in the United States, Cheetah Net Supply sells imported luxury cars in the U.S. and China.
The company booked $53 million in revenue for the year ended March 31, 2023. The sole bookrunner on this deal is Maxim Group.
Personal Care and Pixie Dust
Pixie Dust Technologies (PXDT) had an original estimated IPO date of June 7, intending to raise $19 million at about a $143 million market cap. The company now has an estimated IPO date of Aug. 1 and still seeks the same raise. Founded in 2017 and based in Japan, Pixie Dust Technologies creates consumer personal care devices and spatial materials using metamaterials, mechanobiology, and proprietary wave technology with sound and light waves.
The company’s products include devices for voice detection, scalp care, and acoustic stimulation, a factory workflow tool, and sound-absorbing material. The company booked $4 million in revenue for the year ended Oct. 31, 2022. Boustead Securities is the sole bookrunner on this deal.
Technology Fuels Fitness
Fitell (FTEL) had an original estimated IPO date of May 26 and then July 21, seeking to raise $15 million at a nearly $56 million market cap. The company now has an estimated IPO date of Aug. 1 and intends to raise $17 million at a $61 million market cap. Founded in 2007 and based in Australia, Fitell is a fitness equipment retailer and tech-based online gym with three proprietary brands under Gym Direct.
The company booked $6 million in sales for the year ended Dec. 31, 2022. R.F. Lafferty & Co. and Revere Securities are the joint bookrunners on this deal.
Theme Park and Entertainment Souvenirs and Toys
SRM Entertainment (SRM) had an original estimated IPO date of July 20, seeking to raise $9 million at a $50 million market cap. The company now has an estimated IPO date of Aug. 4 and intends to raise $6 million at a $47 million market cap. Founded in 1978 and based in the United States, the company designs and develops souvenirs, toys, apparel, and homeware for the entertainment and theme park industry, including Six Flags, Walt Disney Parks and Resorts, Dollywood, and Universal Studios.
The company booked $6 million in sales for the year ended March 31. The sole bookrunner on this deal is E.F. Hutton.
Interactive Esports in Pakistan
Gamer Pakistan (GPAK) has an estimated IPO date of Aug. 10 and seeks to raise nearly $8 million at about a $115 million market cap. Founded in 2021 and based in the United States,
Gamer Pakistan is a development-stage interactive esports event promotion and product marketing company focused on creating college, inter-university, and professional esports events for men’s and women’s teams, particularly in Pakistan.
The company intends to expand the range of its esports offerings to other markets in the future and may consider live sports. Gamer Pakistan plans to conduct operations in Pakistan through K2 Gamer and Elite Sports Pakistan and acquired 90% ownership of K2 Games in 2023.
The company has not generated any revenues to date. WestPark Capital is the sole bookrunner on this deal.
