Four micro-cap IPOs are set to price this week in the aftermath of Silicon Valley Bank’s failure last Friday (March 10, 2023) and the collapse of New York’s Signature Bank on Sunday night. The light IPO Calendar for the week of March 13, 2023, is not a surprise. IPO investors are wary after last week’s disappointing IPOs and the stock market’s recent sell-off on turmoil in the banking sector. (Editor’s Note: This column, published online earlier today, was updated late Tuesday afternoon.)
“It’s ‘risk-off’ for us,” a veteran IPO investor said today.
This week’s pricing lineup was reshuffled today (Tuesday, March 14, 2023) to include these four mini IPOs: ICZoom Group Inc. (IZM proposed), 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
Some investors believe that the bank failures and today’s mild February CPI data may give the Fed a reason next week to either raise rates by only 25 basis points – instead of 50 basis points – or to skip a rate increase altogether. U.S. February PPI data – due tomorrow (Wednesday, March 15, 2023) at 8:30 a.m. EST – could affect that view. The Federal Open Market Committee is scheduled to meet next Tuesday and Wednesday (March 21-March 22, 2023).
U.S. stocks rallied today in relief over the February CPI data, which showed that inflation rose at the slowest annual pace since September 2021. Bank stocks led the rally, regaining some ground after a three-day slide on Silicon Valley Bank’s collapse, according to The Wall Street Journal. Silicon Valley Bank’s failure was the second banking shoe to drop last week. Crypto lender Silvergate Financial said on Wednesday (March 8, 2023) that it would liquidate and return all deposits after it was forced to sell assets at a steep loss to cover billions of dollars in withdrawals following the FTX bankruptcy, as The WSJ reported.
If all four of this week’s micro-cap IPOs get priced, bankers expect to raise about $32.43 million. Let’s take a look at the deals, organized by pricing date.
Pricing Tuesday Night To Trade Wednesday
Tonight’s updated pricing roster has just one IPO: ICZoom (IZM proposed). The stock is expected to start trading Wednesday (March 15, 2023) on the NASDAQ.
ICZoom Group (IZM proposed), a profitable Chinese semiconductor and electronic parts company, is offering 1.5 million shares at a price range of $4.00 to $5.00 to raise $6.75 million. The stock in the IPO is being offered by ICZoom’s Cayman Islands-incorporated holding company – and not by the underlying Chinese business. This is a NASDAQ listing.
The Benchmark Company LLC is the sole book-runner.
ICZoom Group Inc., based in Shenzhen, sells semiconductor products and other electronic component products to customers in Hong Kong and the People’s Republic of China (PRC). These products are primarily used by 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. In addition to sales of electronic component products, according to the prospectus. ICZoom also provides services to customers such as temporary warehousing, logistics and shipping, and customs clearance, and charges 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.
Pricing Wednesday Night to Trade Thursday
Trio Petroleum Corp. (TPET proposed), an early-stage oil and gas exploration and production company, plans to price its micro-cap IPO on Wednesday night (March 15, 2023). The stock is expected to trade Thursday (March 16) on the NYSE-American exchange. Trio Petroleum’s IPO consists of 1.71 million shares at $3.00 to $4.00 to raise $6.0 million.
Trio Petroleum, based in Bakersfield, California, has no revenue-generating operations and a $3.8 million net loss for its most recent fiscal year, the prospectus says. The company was formed in 2021 to acquire Trio Petroleum LLC’s working interest of about 82.5 percent in the 8,600-acre South Salinas Project. Trio Petroleum will subsequently partner with certain members of Trio LLC’s management team to develop and operate those assets.
Pricing Thursday Night to Trade Friday
Two IPOs are expected to price Thursday night (March 16) to trade Friday, which happens to be St. Patrick’s Day (March 17, 2023), on the NASDAQ: Mangoceuticals Inc. (MGRX proposed) and Ohmyhome Limited (OMH proposed).
Mangoceuticals Inc. (MGRX proposed), a men’s wellness company that provides relief for erectile dysfunction (ED) through a new ED tablet and telehealth services, relaunched its micro-cap IPO today (March 14, 2023 for pricing Thursday night and trading on Friday. (This IPO was pulled from February’s pricing roster just ahead of Valentine’s Day.)
Boustead Securities is the sole book-runner.
Worth noting: Mangoceuticals changed its proposed stock symbol to “MGRX” in late January, according to an S-1/A filing dated Jan. 26, 2023. (The original proposed symbol was “MNGO.”)
Mangoceuticals, based in Dallas, Texas, has developed a new ED product – a sublingual Rapid Dissolve Tablet that it is in the process of preparing to commercially market under the brand name “Mango.” The company plans to sell its Mango tablet through its website at http://www.MangoRx.com/
The tablet will be produced at a compounding pharmacy. In the prospectus, Mangoceuticals says the tablet will be available to patients on the determination of a prescribing physician that the compounded product is necessary for the individual patient,
Mangoceuticals says it plans “to connect consumers to licensed healthcare professionals through our recently launched website at http://www.MangoRx.com/ for the provision of care via telehealth on our customer portal,” according to the prospectus. The company also plans to “provide access for customers to a licensed pharmacy for online fulfillment and distribution of certain medications that may be prescribed as part of telehealth consultations.”
The company says it is not seeking FDA approval for its Mango ED product.
“Our Mango ED product has not been, and will not be, approved by the FDA,” the prospectus says, “and instead we plan to produce and sell our products, including our Mango ED product, under an exemption provided by Section 503A of the Federal Food, Drug, and Cosmetic Act, as discussed” further in the prospectus.
The company’s Mango tablet for ED “currently includes the following U.S. Food and Drug Administration (“FDA”) approved ingredients: Tadalafil (the active ingredient in Cialis), Oxytocin and L-Arginine, an amino acid that is available as a dietary supplement; however, these FDA approvals do not mean that these ingredients will prove safe when combined into a single formulation to treat ED. We currently offer two dosage levels of our Mango ED product and anticipate doctors prescribing a dosage based on the needs and medical history of the patient,” the prospectus says.
Mangoceuticals is not profitable. The company reported a net loss of $2.0 million on no revenue for the year ended Dec. 31, 2022.
Ohmyhome Limited (OMH proposed) is a Singapore-based property tech platform. The company plans to price its micro-cap IPO on Thursday night to trade Friday on the NASDAQ. This deal’s size is 3.25 million ordinary shares at $4.00 to $5.00 to raise $14.63 million.
Prime Number Capital is the sole book-runner of Ohmyhome’s IPO.
Ohmyhome is not profitable, according to the prospectus.
Week of March 20, 2023
Spring officially begins next week – on Monday, March 20, 2023. Four micro-cap IPOs – including Shengfeng Development (SFWL proposed) – are on next week’s IPO Calendar. IPO investors will keep an eye on the SEC’s filing window to see if any more names land on the calendar in the next few days or so.
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.