IPO Outlook: GCT, LUCY

By Duncan Ferris


This week's IPO outlook sees us taking a look at Gigacloud Technology (NASDAQ: GCT) and Innovative Eyewear (NASDAQ: LUCY), which are set to join the NASDAQ in the coming days.

Photo by CHUTTERSNAP on Unsplash - IPO Outlook

Two more new faces are set to join the NASDAQ before next weekend, offering investors the chance to back logistics and smart glasses.

Here are the IPOs we are focusing on for the week ahead:

Gigacloud Technology (NASDAQ: GCT)

This business is offering 2,450,000 Class A ordinary shares at an anticipated price of between $10.25 and $12.25 each as it joins the NASDAQ index. The company estimates that it will receive net proceeds from this offering of approximately $21.9m.

The company says that the primary purposes of its IPO are to create a public market for its Class A ordinary shares for the benefit of all shareholders, to retain talented employees by providing them with equity incentives and to obtain additional capital.

What Does Gigacloud Technology Do?

Gigacloud technology is a global end-to-end B2B e-commerce solution for large parcel merchandise.

The company’s B2B e-commerce platform seeks to integrate discovery, payments and logistics tools into one easy-to-use platform. The business also connects manufacturers, primarily in Asia, with resellers, primarily in the US, Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency.

The business says it offers a comprehensive solution that transports products from the manufacturer’s warehouse to end customers, all at one fixed price.

The business first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment.

Who is Leading the GCT IPO?

The listing’s sole book-running manager is Aegis Capital Corp.

Use of GCT IPO Proceeds

Gigacloud plans to use the net proceeds of this offering for working capital, operating expenses, capital expenditures and other general corporate purposes.

These include the funding of potential strategic acquisitions, investments and alliances, though the company says it does not presently have specific plans and is not currently engaged in any discussions or negotiations with respect to any such transaction.

Innovative Eyewear (NASDAQ: LUCY)

This business is offering 882,353 units and anticipates that the initial public offering price of its units will be between $7.50 and $9.50. Each unit is comprised of one common stock and two warrants exercisable to acquire one share of common stock for a price not yet set, with these warrants set to expire five years from issuance. 

The company anticipates IPO proceeds of $6.2m based on an assumed offering price of $8.50 per unit.

What Does Innovative Eyewear Do?

Innovative Eyewear develops and sells eyeglasses and sunglasses with digital functionality, while also offering prescription eyewear and sun protection. In January 2021, Innovative Eyewear fully launched its first commercial product, Lucyd Lyte.

Lucyd Lyte glasses enable the wearer to listen to music, take and make calls, and use voice assistants to perform many common smartphone tasks hands-free. 

This initial product was initially launched with six styles, with an additional six styles added in September 2021. These twelve styles are each available with 56 different lens types, resulting in 668 variations of products currently available.

The company was founded by Lucyd Ltd., a portfolio company of Tekcapital, a UK based university intellectual property accelerator.

Who is Leading the LUCY IPO?

The sole book-running manager of the LUCY IPO is Maxim Group LLC.

Use of LUCY IPO Proceeds

Innovative Eyewear anticipates that roughly a third of the proceeds from its IPO will be used for building inventory and another third will go towards sales and marketing. Just over a fifth is set to be used for product development purposes, while working capital and capital expenditure are slated to take up around 12% of proceeds.

Want to find out about key earnings updates in the week ahead? CLICK HERE for our earnings preview!


In this article:

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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