IPO Outlook: ATMVU, BFRG

By Duncan Ferris

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The IPOs to look out for this week include Asia-focused SPAC AlphaVest Acquisition and medicine development and AI specialist BullFrog AI.

Photo by Tech Daily on Unsplash

Here are the IPOs scheduled for launch in the week ahead:

AlphaVest Acquisition

AlphaVest is joining the NASDAQ index under the ticker symbol “ATMVU”. The company is seeking to raise $60m through the sale of 6 million units for an expected price of $10 each.

Each unit consists of one ordinary share and one right entitling the holder to receive one-tenth of one ordinary share upon the completion of an initial business combination. However, fractional shares will not be issued, so shares must be purchased in multiples of ten to fully enjoy the rights to additional shares.

What Does AlphaVest Acquisition Do?

AlphaVest is a blank check company incorporated on January 14, 2022, as a Cayman Islands exempted company for the purpose of effecting a merger, stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. 

The business intends to initially focus its search on target businesses in Asia. However, the business does note some limitations on potential target businesses in China, stating it will seek to avoid companies with a variable interest entity structure and be aware of difficulties with Chinese regulatory agencies.

While the business appears keen to stress that it may not invest in Chinese business’, a majority of its officers and directors are located in, or have significant ties to, China.

Even so, the business says it has not selected any specific target business and has not engaged in any substantive discussions with any target business with respect to an initial business combination.

Instead, the main information that can be offered is AlphaVest’s acquisition criteria for target companies. These are the following four points:

  • Strong Management Team that Can Create Significant Value for Target Business.

  • Revenue and Earnings Growth Potential.

  • Potential for Strong Free Cash Flow Generation.

  • Benefit from Being a Public Company.

Who is Leading the ATMVU IPO?

The listing’s book-running manager is EarlyBirdCapital Inc, while the co-manager is Revere Securities. AlphaVest says it has granted the underwriters a 45-day option to purchase up to an additional 900,000 units to cover over-allotments, if any.

Use of ATMVU IPO Proceeds

With the business hoping to sell 6 million units at $10 each, AlphaVest is hoping to raise around $60m. NASDAQ rules indicate that at least 90% of the gross proceeds from the offering and the sale of the private units must be deposited in a trust account.

The money held in the trust account may be used to pay the sellers of a target business, as well as paying the business’ expenses. However, the company may also apply the balance of the trust account for general corporate purposes.

BullFrog AI Holdings

The company is listing 1,317,647 units, each of which consists of one common stock and one warrant to purchase a share of common stock at an as-yet-unknown exercise price before the warrant expires five years from issuance.

The anticipated IPO price for each unit is $6.375, and the stock will be listed on the NASDAQ under the ticker BFRG.

What Does BullFrog AI Do?

BullFrog AI is a company that uses artificial intelligence and machine learning to advance the development of medicines for internal and external projects. The company's approach is driven by the high failure rate and costs associated with developing new therapeutics. As a result, BullFrog's mission is to increase the probability of success and decrease the time and cost involved in developing these treatments.

The company's platform technology, called bfLEAP, is an AI and machine learning platform that addresses the challenges of scalability and flexibility in data analysis. This allows researchers and clinicians to gain a more precise, multi-dimensional understanding of their data.

BullFrog is using bfLEAP at various stages of development for its internal programs and through partnerships and collaborations with the goal of streamlining data analysis in therapeutics development and reducing costs. The ultimate aim is to improve the lives of patients who may not have access to the treatments they need.

Who is Leading the BFRG IPO?

The company's IPO is being headed by Viewtrade Securities and Wallachbeth Capital. 

Use of BFRG IPO Proceeds

BullFrog says it intends to use the net proceeds for investing in research and development (25%), the repayment of debt (10%) and the remainder for working capital and general corporate purposes.

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Enjoyed this IPO coverage? Check out our preview of this week's earnings updates!

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In this article:

Topics:
IPO
SPAC
AI
Industries:
Healthcare

Author: Duncan Ferris

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Duncan Ferris does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Duncan Ferris has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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