IPO Outlook: JUNS, CRBG

By Kirsteen Mackay

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IPOs for your investing radar this week include Jupiter Neurosciences (NASDAQ: JUNS) and Corebridge Financial Inc (NYSE: CRBG).

If you buy at IPO, you could be one of the first to own shares in a company. However, there are risks, and it is important to weigh the stock's future potential before buying shares at IPO. 

Jupiter Neurosciences (NASDAQ: JUNS)

Jupiter Neurosciences (NASDAQ: JUNS) is due to list 2.5 million shares on the NASDAQ via IPO on September 14, 2022. 

Jupiter Neurosciences Inc has filed for an initial public offering (IPO). The company believes the IPO stock price will be between $5 and $7 per share of common stock. The company will list its common stock on the NASDAQ Capital Market under JUNS.

The implied market capitalization of JUNS at IPO is $56.92 Million, given the midpoint of the range.

What Does Jupiter Neurosciences Do?

Jupiter Neurosciences is a clinical-stage research and development (R&D) pharmaceutical company located in Jupiter, Florida. The company has developed a unique resveratrol platform product primarily targeting the treatment of neuroinflammation.

Resveratrol is found in several food sources, including the skin of grapes, blueberries, raspberries, mulberries, and peanuts. 

Jupiter's primary product candidate, JOTROL™, has many potential indications of use for rare diseases, of which it is primarily targeting Mucopolysaccharidoses Type 1, Friedreich's Ataxia, and MELAS and ALS in an earlier development stage. In the larger disease areas, the firm primarily targets Mild Cognitive Impairment/early Alzheimer's disease with an early development program in TBI/concussions.

The resveratrol products currently available on the market are associated with severe gastrointestinal (GI) side effects at the dose levels Jupiter Neurosciences believes are needed for therapeutic effects.

The emerging growth company believes that JOTROL™, based on the results from its Phase I trial, has the potential to deliver a therapeutically effective dose of resveratrol in the bloodstream without causing GI side effects. 

JUNS Investment Risk Factors

Jupiter Neurosciences stock is subject to numerous risks:

  • The company is not profitable and may never be.

  • It has a limited operating history.

  • JUNS will require substantial capital on an ongoing basis to finance its operations.

  • Jupiter is dependent on the success of JOTROL™.

Who is Leading the JUNS IPO?

Spartan Capital Securities LLC is the principal underwriter and book runner on the JUNS stock IPO.

Use of JUNS IPO Proceeds

Jupiter Neurosciences estimates the net proceeds from its IPO will be approximately $13.2m, based on an assumed mid-point offering price of $6 per share. 

The principal purpose of its IPO is to obtain capital to support its operations and facilitate future access to the public capital markets. The company believes proceeds from the IPO will be sufficient to see it through the next two years. 

The company intends to use the IPO proceeds in the following way:

  • Around $1.3m to repay a loan.

  • $350k to fund IND submissions for Friedreich's ataxia, MELAS and MCI/early Alzheimer's Disease.

  • $75k to pay the annual license fee to Aquanova AG.

  • $900k to fund the manufacturing of clinical trial supplies of JOTROL™.

  • $4m to fund Phase II clinical trials of JOTROL™ in patients with MPS I, later followed by an initiation of Phase II in MELAS and Friedreich's ataxia in the first half of 2024.

  • $250k to fund preclinical R&D for TBI/Concussion and ALS.

  • $4m will be allocated to paying for strategic services in Asia.

  • The remainder will fund general R&D and business running costs.

How to Buy NASDAQ Stocks

Corebridge Financial Inc (NYSE: CRBG)

Corebridge Financial Inc (NYSE: CRBG) is due to list 80 million shares on the New York Stock Exchange (NYSE) via IPO on September 15, 2022. 

Corebridge Financial Inc is the life and retirement unit of American International Group, Inc (NYSE: AIG). Therefore, AIG is the major stockholder bringing Corebridge Financial to IPO.

The company believes the IPO could raise $1.9bn, with a stock price of between $21 and $24 per share. The company will list its common stock on the New York Stock Exchange (NYSE) under the symbol CRBG.

The implied market capitalization of CRBG at IPO is $14.5bn, given the midpoint of the range.

What Does Corebridge Financial Do?

Corebridge Financial, Inc. operates as a life and annuity company. The company is one of the largest providers of retirement solutions and insurance products in the United States, committed to helping individuals plan, save and achieve a secure financial future.

Corebridge Financial serves customers in the United States.

CRBG Investment Risk Factors

Corebridge Financial stock is subject to multiple risks:

  • Rapidly rising interest rates or negative interest rates.

  • Deteriorating economic conditions increase the likelihood of a recession.

  • Inadequate reinsurance.

  • Limited access to funds.

  • The significant influence that AIG has over Corebridge Financial.

Who is Leading the CRBG IPO?

Several underwriters are leading the CRBG IPO. JP Morgan Securities is acting as global coordinator, with Morgan Stanley and Piper Sandler acting as representatives on many more, including Citigroup, Goldman Sachs and BNP Paribas.

The CRBG IPO was expected earlier this year before it was delayed amid the market downturn.

Use of CRBG IPO Proceeds

The selling stockholder AIG is selling all the shares in this offering, and Corebridge Financial will not receive any proceeds. 

The company intends to pay quarterly cash dividends of $0.23 per share on its common stock beginning in Q3 2022 at an initial $600m per year.

How to Buy NYSE Stocks

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In this article:

Topics:
IPO
Industries:
Financials
Healthcare

Author: Kirsteen Mackay

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.

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

Kirsteen Mackay 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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