ICZoom Group Inc. (IZM) priced its micro-cap IPO on Tuesday night (March 14, 2023) at $4.00 – the low end of its $4.00-to-$5.00 range. The company raised $6.0 million by pricing 1.5 million shares – the same number of shares in the prospectus – at $4.00 each. ICZoom’s IPO was the first IPO priced during the week of March 13, 2023 – in the wake of Silicon Valley Bank’s failure last Friday (March 10) and New York’s Signature Bank’s closing by regulators on Sunday night (March 12). More bank failure fears – this time in Europe, driven by trouble at Credit Suisse – spoiled the first dance for ICZoom. The stock fell 17.25 percent on its first day of NASDAQ trading.
The Benchmark Company LLC served as the sole book-runner of ICZoom’s IPO.
ICZoom’s stock closed on Wednesday (March 15, 2023) at $3.31 – down 69 cents from its $4.00 IPO price – for a drop of 17.25 percent on its first day of trading on the NASDAQ. Volume: 665,819 shares.
ICZoom’s stock opened at $4.00 – a flat start at its IPO price – when its started trading at 10:20 a.m. EDT on Wednesday (March 15, 2023) on the NASDAQ, according to NASDAQ’s records. Opening volume: 186,661 shares. In late morning trading, ICZoom was down 14 percent from its $4.00 IPO price to trade at $3.44 – above its session low of $3.26. ICZoom’s drop in its NASDAQ debut occurred as the Dow fell more than 600 points on fear driven by Credit Suisse’s struggle for stability, which spurred a sell-off in European bank shares, according to The Wall Street Journal. In the countdown to noon EDT, the major U.S. stock indexes had pulled back from their session lows: The Dow was down 1.59 percent at 31,643.92 – after falling 2 percent earlier in the day. The S&P 500 was down 1.43 percent at 3,863.089 and the NASDAQ was down 1.08 at 11,305.25. , the major U.S. stock indexes
By the close on Wednesday, the Dow and the S&P 500 were down for the day but well off their session lows: The Dow was down 279.18 points, or 0.87 percent, at 31,876.22, while the S&P 500 was down 26.93 points, or 0.69 percent, at 3,892.36. In contrast, the NASDAQ Composite Index was up 5.90 points, or 0.05 percent, at 11,434.05. (Note: These figures are from a screenshot taken at the closing bell on Yahoo Finance – and these figures should not be taken as the settlement figures or official closing figures.)
ICZoom Group (IZM) is the Cayman Islands-incorporated holding company, or parent, of a profitable Chinese semiconductor and electronic parts company. The stock in the IPO was offered by ICZoom’s Cayman Islands holding company – and not by the underlying Chinese business.
ICZoom, based in Shenzhen, sells semiconductor products and other electronic component products to customers in Hong Kong and the People’s Republic of China (PRC) primarily through its B2B online platform: http://www.iczoomex.com/ The online platform is operated by the company’s Hong Kong subsidiary, Iczoom Electronics Limited, also known as ICZOOM HK. The company’s customers are mostly China-based SMEs (small and medium-sized enterprises) in the consumer electronics industry, the Internet of Things (“IoT”) business, the automotive electronics industry and the industry controls business. ICZoom also provides its customers with services such as temporary warehousing, logistics and shipping, and customs clearance, and charges them commission fees for these services.
For the fiscal year that ended June 30, 2022, ICZoom reported net income of $2.57 million on revenue of $290.38 million.
As for the rest of the IPO Calendar, the whole deck of cards got reshuffled on Tuesday to include three more micro-cap IPOs this week: Trio Petroleum Corp. (TPET proposed), Mangoceuticals Inc. (MGRX proposed) and Ohmyhome Limited (OMH proposed). Another micro-cap IPO, initially on tap for pricing this week, was moved back to next week.
Ugly Wednesday on Wall Street means that some pricing dates may get revised.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.