After an initial first quarter surge, the microcap IPO market slowed in early April and remains level this week.
IPO activity usually increases during the second quarter, with further promising possibilities by summer as the markets rebound from the recent banking crisis, according to Renaissance Capital, an SEC-registered investment advisor that tracks IPOs. Normally, this is the time of year when IPO activity builds momentum and peaks in June, according to the firm’s historical data.
Hong Kong Contracting and Design
Wang & Lee Group (WLGS) has an estimated IPO date of April 20 and intends to raise $8 million at a $75 million market cap. Founded in 1981 and based in Hong Kong, the company provides contracting and design services, primarily for mechanical and electrical systems, to the China construction industry. Wang & Lee also provides environmentally-conscious designs to promote water and energy efficiency, responsible waste discharge, and indoor environment quality. The company booked $3 million in revenue for the year that ended June 30, 2022. The sole bookrunner on the deal is Boustead Securities.
The Long Arm of Logistics
Jayud Global Logistics (JYD) has an estimated IPO date of April 21 and seeks to raise nearly $7 million at a $96 million market cap. Founded in 2001 and based in Shenzhen, China, Jayud Global Logistics provides cross-border logistics services in China, including supply chain management, freight forwarding services, brokerage, and logistic IT systems. As of June 30, 2022, the global freight network covered six continents and seven countries, including Singapore, Thailand, the Philippines, India, Hamburg, the United States and the United Kingdom. The company booked $122 million in revenue for the year that ended June 30, 2022. Benchmark Company is the sole bookrunner on the deal.
The New Forme of Fitness
Interactive Strength (TRNR) has an estimated IPO date of April 28 and intends to raise $14 million at a $99 million market cap. Founded in 2017 and based in the United States, Interactive Strength offers connected home fitness equipment hardware products under the business name Forme, including the Forme Studio fitness mirror and the Forme Studio fitness mirror with cable-based digital resistance. The company also offers personal training, on-demand fitness classes, and health coaching. Interactive Strength (Forme) booked $1 million in sales for the year that ended Sept. 30, 2022. Aegis Capital is sole bookrunner.