Double moonshots on Friday: Forza X1 (FRZA) jumped 192.8 percent to $14.64, while Reborn Coffee (REBN) climbed 149 percent to $12.45 at their intraday highs this morning on their first day of NASDAQ trading (Aug. 12, 2022). A moonshot occurs when a stock’s price doubles – in effect, gains 100 percent – or more from its IPO price on its first day of trading. (Editor’s Note: This column, published Friday morning and updated at midday, has been updated again to include Friday’s closing prices and some IPO stats.)
These opening-day flights took off as the major U.S. stock indexes extended their rally, with the NASDAQ up 1.2 percent at midday. The major stock indexes are on track for another week of gains, after milder-than-expected inflation data this week gave investors reason to believe that the Fed’s next rate move in September may be a 50-basis-point increase instead of 75.
Both IPOs were priced on Thursday night (Aug.11, 2022.):
–Forza X1 (FRZA), a Ft. Pierce, Florida-based electric boat start-up, priced its IPO of 3 million shares at $5.00 each to raise $15.0 million. Forza’s stock opened at $13.96 – up $8.96 or 179.2 percent from the IPO price – on volume of 519,311 shares, NASDAQ records show. ThinkEquity was the sole book-runner.
–Reborn Coffee (REBN), a Southern California-based chain of nine coffee cafés with an online retail business, accelerated its IPO pricing by a day and upsized the deal to 1.44 million shares from 1.2 million. The IPO – priced at $5.00 – raised $7.2 million. Reborn Coffee’s stock opened at $8.80 – up $3.80 or 76 percent from its IPO price – on volume of 157,509 shares, NASDAQ records show. EF Hutton was the sole book-runner.
Their performance brings the moonshot count to three this week. Treasure Global, Inc. (TGL), a Malaysian payments app company, surged 345.5 percent from its $4.00 IPO price to close at $17.82 on Thursday (Aug. 11, 2022) in its NASDAQ debut. Treasure Global’s stock cooled off on Friday (Aug. 12, 2022), trading at $8.53 at midday and closing at $8.40, but still in the moonshot zone – up 110.0 percent from its IPO price. EF Hutton was the sole book-runner.
By Friday’s closing bell, the moonshot glow had faded for Forza X1 and Reborn Coffee:
- Forza X1 shares closed at $7.49, up $2.49 – a gain of 49.8 percent – from their $$5.00 IPO price, but roughly half of their intraday high at $15.00 on their first day of trading.
- In contrast, Reborn Coffee shares closed at $4.80, down 20 cents – a loss of 4 percent – from their $5.00 IPO price, and a drop of 61.5 percent from their intraday high at $12.45 on their first day of trading. Reborn Coffee ended its first day of trading as a broken deal, closing below its IPO price.
CorpHousing Group, Inc. (CHG), a Miami-based company that provides short-term rental housing to business and vacation travelers under its SoBeNY brand, also priced its IPO on Thursday night (Aug. 11, 2022). The deal was downsized to 3.375 million shares, down from 4.5 million shares, and the IPO was priced at $4.00 – the low end of its $4.00-to-$6.00 range – to raise $13.5 million. Maxim Group was the sole book-runner.
Shares of CorpHousing Group opened Friday at $4.16 – up 16 cents or 4 percent – on NASDAQ on volume of 333,890 shares, according to NASDAQ. The stock hit an intraday high of $5.00 – up $1.00 or 25 percent – and ebbed slightly to trade at around $4.71 at midday.
By Friday’s closing bell, CorpHousing Group shares closed at $3.70, down 30 cents – a drop of 7.5 percent – from their $4.00 IPO price in their first day of trading. That closing price moved CorpHousing Group’s IPO to the “broken deal” category because the stock ended below its IPO price.
For a sleepy week in August, this week’s rally in the overall stock market and a trio of IPO moonshots gave IPO investors something to celebrate as they got ready for the weekend.
For the record, bankers raised $183.58 million this week from nine deals – four IPOs, two SPAC IPOs and three uplisting/public offerings.
Next week’s IPO Calendar has just a trio of deals so far – about par for the course in what is usually one of the slowest weeks of the year in the Land of IPOs. But that could change when the SEC’s filing window opens for business on Monday morning (Aug. 15, 2022).
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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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.