Jin Medical (ZJYL) and YanGuFang (YGF) priced their downsized micro-cap IPOs at the low end of their price ranges on Monday night (March 27, 2023). Both started trading today (Tuesday, March 28, 2023) on the NASDAQ. Jin Medical’s stock opened flat with its $8.00 IPO price, hit a session high at $10.29, and slipped to end its first day of NASDAQ trading at $7.95 – down a nickel – or 0.63 percent. YanGuFang’s stock also opened flat – touching $4.00, its IPO price, at the first tick – inching up to $4.01, its session high – and dipping to close its first day of NASDAQ trading at $3.89 – down 11 cents – or 2.75 percent. (Editor’s Note: This column, published early Tuesday, was updated after the close with details on each IPO’s NASDAQ trading debut – and with the pricing Tuesday night of Trailblazer Merger Corp. I.)
For the last week of March, the IPO Calendar shows up to 14 small-cap deals – 12 micro-cap IPOs, including Jin Medical and YanGuFang, and two SPAC IPOs – with total estimated IPO proceeds of about $241.9 million.
One SPAC IPO – TMT Acquisition Corp. (TMTCU) – was priced Monday night (March 27, 2023) in sync with the terms in its prospectus: 6.0 million units at $10.00 each to raise $60.0 million. TMT Acquisition – the 10th SPAC IPO priced so far in 2023 – started trading today (Tuesday, March 28, 2023) on the NASDAQ. TMT Acquisition opened at $10.19 – up 19 cents or 1.90 percent – in its NASDAQ debut. The stock edged up to $10.21 and later revisited $10.19, where it closed its first day of NASDAQ trading.
Maxim Group was the sole book-runner of TMT Acquisition’s IPO. The New York-based SPAC intends to search for target companies in Asia, excluding China, Hong Kong and Macau, the prospectus says.
Wheelchairs Made in China
Jin Medical International Ltd. (ZJYL), the parent of a Chinese wheelchair manufacturer, priced 1.0 million ordinary shares at $8.00 on Monday night (March 27) to raise $8.0 million – down from the deal’s terms of 1.25 million shares at $8.00 to $9.00 in the prospectus. The downsizing cut the IPO’s proceeds by about $2.63 million.
Prime Number Capital was the sole book-runner of Jin Medical’s IPO. The deal was delayed last September – along with several exceptionally small IPOs – when NASDAQ stepped up its scrutiny of small-cap IPOs, especially those with ties to China.
Jin Medical is the Cayman Islands holding company whose Chinese business, founded in 2006, designs and manufactures wheelchairs at two factories in Jiangsu Province. Most of its wheelchairs are sold to dealers in China and Japan. Nissin Medical Industries Co. Ltd., one of the largest medical device distributors in Japan, is among its customers.
For the year ended March 31, 2022, Jin Medical reported net income of $2.02 million on revenue of $20.82 million.
Oat Products in China
YanGuFang International Group Co. Ltd. (YGF), the Cayman Islands parent of a Chinese oat and grain company, priced 2.0 million shares at $4.00 on Monday night (March 27) to raise $8.0 million – down from the deal’s terms of 2.5 million shares at $4.00 to $6.00 in the prospectus. The downsizing cut the IPO’s proceeds by about $4.5 million.
EF Hutton was the sole book-runner of YanGuFang’s IPO. The deal was a carry-over from last week.
YanGuFang International Group Co. Ltd., based in Shanghai, is “primarily engaged in the production, research and development, and sales of oat and grain products through our own sales team and distribution network,” the prospectus says. Its products include oat germ groats, oatmeal, oat flour, oat bran, dietary fiber powder, oat biscuits, oat hand cream and soap, and oat toothpaste.
For the 12 months that ended June 30, 2022, YanGuFang reported net income of $5.74 million on revenue of $36.08 million.
Asia in Play
China, Japan and Malaysia are represented among the 10 remaining micro-cap IPOs that make up the rest of this week’s IPO Calendar. The majority hail from China. Two Japanese real estate companies are also on the pricing roster, along with a Malaysian IoT (Internet of Things) company.
Another SPAC IPO – U.S. tech-focused Trailblazer Merger Corp. I (TBMCU proposed) – is in the mix. Trailblazer Merger I – 6.0 million units at $10.00 to raise $60.0 million – was priced tonight (Tuesday, March 28, 2023) to trade Wednesday on the NASDAQ. Trailblazer Merger I was priced in sync with the terms in its prospectus; it became the 11th SPAC IPO priced so far this year. LifeSci Capital and Ladenburg Thalmann were the joint book-runners.
Two Chinese micro-cap IPOs – Chanson International Holding (CHSN proposed), the Cayman Islands parent of a Chinese bakery chain, and Hongli Group (HLP proposed), the Cayman Islands parent of a Chinese cold steel products company – were launched Monday for pricing this week. EF Hutton is the sole book-runner of both IPOs. Both are NASDAQ listings.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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