The microcap IPO lull continues with another slow week after an initial surge at the start of the second quarter.
Bill Smith, co-founder and CEO of Renaissance Capital, noted the recent “pop and drop” IPO situations this quarter, like China’s U Power that popped 620% then crashed 82% last week. He notes the activity is reminiscent of last year’s “pop and drop” theme until regulator intervention.
Smith’s main takeaway in his latest newsletter is that “these microcap IPOs should result in….more microcap IPOs.”
Microcaps historically outperform other markets during a rising interest rate environment.
While the banking crisis delayed IPO timelines, increased activity is anticipated by early summer.
Thinking About Collaboration
T1V (THNK) has an estimated IPO date of April 26 and intends to raise nearly $14 million at a $53 million market cap. Founded in 2007 and based in the United States, the company specializes in hybrid collaboration software for various markets, including education, healthcare, commercial, and enterprise, and offers ThinkHub, a proprietary visual collaboration solution designed for global teams. Last year T1V booked $15 million in sales. The sole bookrunner on the deal is EF Hutton.
Entertainment Goes Strong
Strong Global Entertainment (SGE) has an estimated IPO date of May 10 and seeks to raise close to $26 million at a $38 million market cap. Founded in 1968 and based in the United States, Strong Global Entertainment manufactures and distributes large-format projection screens and specially-designed Eclipse curvilinear screens with related services, support, and maintenance to venues like theme parks, cinema exhibitors, and educational institutions. In addition, the company recently launched Strong Studios with an expansion goal of creating and producing feature films and series. Last year Strong Global Entertainment booked $40 million in sales. ThinkEquity is sole bookrunner.
