IPO Outlook: HSAI, NXT, MLYS, ENLT, NRXS

This week could be a busy one on the IPO front, with as many as nine companies (that’s right nine) slated to join the NASDAQ. So, without further ado, let’s explore some of the key listings for the next five days.

Hesai Group

This business is offering 9 million American depository shares (ADS), which are expected to sell for between $17 and $19 each. It will join the NASDAQ under the ticker symbol “HSAI”.

The listed shares are of Class B variety, offering one vote per share compared to ten votes per share for Class A shares.

What is Hesai Group?

Hesai is a specialist in three-dimensional light detection and ranging (LiDAR) solutions.

The company’s LiDAR products enable a broad spectrum of applications across passenger or commercial vehicles, autonomous vehicle fleets and other applications such as last-mile delivery robots, street sweeping robots, and logistics robots.

Who is Leading the HSAI IPO?

Goldman Sachs, Morgan Stanley, Credit Suisse and Huatai Securities are acting as underwriters for this IPO.

HSAI IPO Use of Proceeds

Planned use the net proceeds of this offering is as follows:

25% for investment in manufacturing capabilities, including constructing new manufacturing facilities and purchasing new manufacturing and testing equipment.
35% for research and development, including development of next-generation ASICs and further investment in software solutions.
40% for general corporate purposes, which may include potential strategic investments and acquisitions, although specific investments or acquisition opportunities have not been identified.

Nextracker

This business is offering 23,255,814 shares of its Class A common stock, which it expects will cost between $20 and $23 per share. This will see the company joining the NASDAQ under the symbol “NXT”.

What is Nextracker?

This company presents itself as a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world.

The business is essentially the legacy solar tracker business of a business called Flex. Its products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance.

The company claims that, in its prior form as the solar tracker business of Flex, it led the solar industry based on gigawatts shipped globally in 2015 and both globally and in the United States from 2016 to 2021.

The business was formed as a Delaware corporation on 19 December 2022. It is currently a 100%-owned subsidiary of Yuma, Inc., a Delaware corporation and indirect wholly-owned subsidiary of Flex Ltd.

The company was formed for the purpose of completing a public offering and related transactions in order to carry on the business of Nextracker LLC, which is an entity comprised of the solar tracker business of Flex Ltd.

Who is Leading the NXT IPO?

JP Morgan and BofA Securities are among those heading Nextracker’s IPO.

NXT IPO Use of Proceeds

The business says it will use all of the net proceeds from this offering to purchase 23,255,814 LLC Common Units from Yuma at a price per unit equal to the initial public offering price per share of Class A common stock in this offering less the underwriting discount. Nextracker will not retain any of the net proceeds of this offering.

Mineralys Therapeutics

This business is joining the NASDAQ under the ticker symbol “MLYS”. The company intends to sell 10 million shares of its common stock in the listing, for an expected price of between $14 and $16 each.

No date is yet confirmed for the listing, but NASDAQ.com indicates it could take place on Friday 6 February.

What is Mineralys Therapeutics?

Mineralys is a clinical-stage biopharmaceutical company focused on developing medicines to target diseases driven by abnormally elevated aldosterone.

The company’s product candidate is lorundrostat, a proprietary, orally administered, highly selective aldosterone synthase inhibitor that the business is initially developing for the treatment of patients with uncontrolled hypertension (uHTN) or resistant hypertension (rHTN).

In addition to hypertension, the business says it intends to develop lorundrostat for the treatment of chronic kidney disease (CKD) and believes that the product candidate holds promise to be an innovative solution for the rapidly growing unmet need in multiple cardiorenal disorders.

Who is Leading the MLYS IPO?

BofA Securities, Evercore ISI, Stifel, Guggenheim Securities, Credit Suisse and Wells Fargo are listed as the IPOs underwriters.

MLYS IPO Use of Proceeds

The company has listed the principal purposes of the offering as obtaining additional capital to support operations, to create a public market for its common stock and to facilitate future access to the public equity markets.

When it comes to the proceeds, the business says it intends to use approximately $122m, together with existing cash, cash equivalents and marketable securities, to fund the research and development of lorundrostat, and any remainder for working capital and general corporate purposes.

Enlight Renewable Energy

This business is offering 14 million ordinary shares in what is its first listing in the United States. The business will join the NASDAQ under the ticker symbol “ENLT”.

The company’s ordinary shares trade on the Tel Aviv Stock Exchange under the symbol ENLT. On 2 February 2023, the closing price of its ordinary shares on the TASE was NIS 71.73 per share (or $20.96 based on the exchange rate reported by the Bank of Israel on 2 February 2023).

What is Enlight Renewable Energy?

Enlight is a global renewable energy platform, founded in 2008, which aims to develop, finance, construct, own and operate utility-scale renewable energy projects.

At present, the company primarily generates revenue from the sale of electricity produced by its renewable energy facilities. The company says it distinguishes itself through its control over the entire project life cycle, from greenfield development to ownership and operations, and a diverse global presence and multi-technology capabilities.

Enlight’s global portfolio of utility-scale, renewable energy projects included approximately 17.0 GW of multi-technology generation capacity and approximately 15.3 GWh of energy storage capacity, of which approximately 4.0 GW and approximately 2.1 GWh, respectively, are from Mature Projects.

Who is Leading the ENLT IPO?

The listing is being underwritten by JP Morgan, Barclays, BofA Securities, Credit Suisse, Roth Capital Partners and Wolfe Nomura Partners.

ENLT IPO Use of Proceeds

The company says it intends to use the proceeds in the following manner:

$225m to fund equity requirements for advanced development projects
$45.8m for working capital purposes and general corporate purposes
Additionally, a portion of the proceeds may be used to acquire or invest in businesses, though it does not have agreements or commitments for any material acquisitions or investments at this time.

NeurAxis

NeurAxis plans to join the NASDAQ index under the ticker symbol NRXS, offering 1,875,000 shares of common stock at an estimated public offering price between $7 and $9 per share.

NRXS is scheduled to IPO on February 6, 2023, according to FactSet.

What is NeurAxis?

NeurAxis, Inc. is a growth-stage company focused on developing neuromodulation therapies to address chronic and debilitating conditions in children.

The Company's first product, IB-Stim, is a PENFS system intended to be used in patients 11-18 years of age with functional abdominal pain associated with IBS. IB-Stim is a US FDA Class II medical device that has received one regulatory clearance: DEN180057, under the regulation name of "non-implanted nerve stimulator for functional abdominal pain relief."