IPO Outlook: LRE, LBGJ, INTS, PRZO, YGF

By Duncan Ferris

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Some of the IPOs slated for the week ahead include Lead Real Estate (NASDAQ: LRE), Li Bang International (NASDAQ: LBGJ), Intensity Therapeutics (NASDAQ: INTS), ParaZero Technologies (NASDAQ: PRZO) and YanGuFang International Group (NASDAQ: YGF).

Here are the IPOs which are expected this week:

Lead Real Estate

Lead Real Estate (NASDAQ: LRE) is on course to join the NASDAQ index this week with the listing of 2 million American Depository Shares (representing 2 million ordinary shares). The company says it expects these shares to go for between $12 and $15 each.

Following the completion of this offering, the company’s president, CEO and representative director, Eiji Nagahara, will own approximately 84.4% of the aggregate voting power of the company’s issued and outstanding ordinary shares assuming no exercise of the underwriters’ over-allotment option.

What Does Lead Real Estate Do?

Lead Real Estate is a developer of luxury residential properties, including single-family homes and condominiums, across Japan’s Tokyo and Kanagawa prefecture. In addition, the business operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.

The business says it primarily generates revenue from developing and selling single-family homes and condominiums, having delivered more than 1,000 since its formation in 2001. The business’ target customers are wealthy family buyers and institutional customers who look to purchase entire condominiums for investment purposes. 

Recently, the business launched an interactive media platform, Glocaly, as a listing and marketing platform seeking to facilitate matching of sellers and buyers of condominiums.

Who is Leading the LRE IPO?

The company’s listing is being headed by underwriters Network 1 Financial Securities. 

Use of LRE IPO Proceeds

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

  • Around 50% for domestic business expansion, including expanding its condominium development and sales in Japan.

  • Approximately 30% for the development of the Glocaly platform, including sales and marketing, feature development and server maintenance costs.

  • Approximately 20% for general corporate purposes.

Li Bang International

Li Bang International (NASDAQ: LBGJ) is joining the NASDAQ index with 5 million shares. The company says it anticipates the initial public offering price to be between $4.00 and $6.00 per share.

What Does Li Bang International Do?

Li Bang International Corporation conducts all of its operations in China through operating subsidiaries. The main business of these companies is to design, develop, produce and sell stainless steel commercial kitchen equipment in China under the business’ Libang brand.

Additionally, these operating subsidiaries provide customers with comprehensive services, from commercial kitchen design in the early stage to equipment installation and after-sales maintenance. 

Who is Leading the LBGJ IPO?

Univest Securities LLC is heading up Li Bang International’s listing.

Use of LBGJ IPO Proceeds

The business intends to split the proceeds like this:

  • 30% for the construction of two factories in Jiangyin to expand production capacity.

  • 15% to purchase production equipment including Italian metal flexible processing line to upgrade infrastructure and quality of the company’s products.

  • 1% on advertising and marketing.

  • 4% on research and development.

  • 50% for working capital and general corporate purposes.

Intensity Therapeutics

Intensity Therapeutics (NASDAQ: INTS) is offering 2,222,223 shares of its common stock, with an expected price per share of between $4 and $5. Additionally, the offering’s underwriters have an option to purchase up to 333,333 additional shares of common stock at the initial public offering price less the underwriting discounts and commissions.

What Does Intensity Therapeutics Do?

Intensity Therapeutics is a clinical stage biotechnology company committed to the field of localized cancer reduction leading to anti-cancer immune activation. The company’s approach involves the direct injection into tumors of a unique product created from its DfuseRx℠ discovery platform.

The company’s lead product candidate, INT230-6, consists of two proven anti-cancer cytotoxic agents, cisplatin and vinblastine sulfate, mixed with the amphiphilic molecule (SHAO), all in a single vial.

Who is Leading the INTS IPO?

The listing’s joint book running managers are Roth Capital Partners and The Benchmark Company.

Use of INTS IPO Proceeds

The company says it intends to use the net proceeds from this offering for the following purposes:

  • Around 25% toward initiating/conducting a Phase 3 sarcoma and/or Phase 2/3 early-stage breast cancer studies (IT-03 and IT-04).

  • Approximately 35% toward current clinical trials and related operations.

  • Roughly 5% toward development of the company’s second product candidate, INT33X.

  • Approximately 35% toward general corporate purposes and working capital.

ParaZero Technologies

ParaZero Technologies (NASDAQ: PRZO) is offering 3.04 million units, which each consist of one ordinary share and two warrants. The company anticipates that the IPO price per unit will be between $5.10 and $7.20.

What Does ParaZero Technologies Do?

This business is an aerospace company with a focus on drone safety systems. The company is currently engaged in the business of designing, developing, and providing what it believes are best-in-class autonomous parachute safety systems for commercial drones, also known as unmanned aerial systems or UAS.

The company was founded by a group of aviation professionals, together with veteran drone operators, to address the drone industry’s safety challenges. ParaZero’s goal is to enable the drone industry to realize its potential through increasing safety and mitigating operational risk.

Who is Leading the PRZO IPO?

The sole book-running manager of the listing is Aegis Capital Corporation.

Use of PRZO IPO Proceeds

ParaZero says it currently expects to use the net proceeds from this offering for the following purposes:

  • Approximately $7m for research and development of new technologies and existing products.

  • $4m for marketing and sales efforts in new territories.

  • Around $250,000 to discharge the company’s indebtedness to Medigus Ltd.

  • The remainder for working capital and general corporate purposes and possible future acquisitions.

Want to learn more about the big name companies in the drone industry? Read our analysis HERE!

YanGuFang International Group

YanGuFang International Group (NASDAQ: YGF) is listing 5 million shares, with an expected listing price of between $5 and $7. 

What Does YanGuFang International Do?

YanGuFang Group is a holding company incorporated as an exempted company on May 28, 2020 under the laws of the Cayman Islands. As a holding company with no material operations of its own, it uses a VIE structure and conducts all of its operations through its PRC subsidiary and the VIEs based in China.

The business is primarily engaged in the production, research and development, and sales of oat and grain products through its own sales team and distribution network.

The business says its mission is to build a new type of healthy food company with core values of safety, health, nutrition and sustainability.

Who is Leading the YGF IPO?

YanGuFan’s IPO is being EF Hutton, a division of Benchmark Investments LLC.

Use of YGF IPO Proceeds

The company plans to use the net proceeds from this offering as follows:

  • Around 30% for the construction of additional production facilities, purchase of new equipment and upgrades of existing equipment.

  • 10% for the R&D of new products and technologies, upgrades of existing products and technologies, new hires of R&D staff.

  • 12% for global business expansion, primarily to North America, South East Asia and Japan.

  • 20% for marketing and brand promotion.

  • 28% for working capital and other general corporate purposes.

Want to hear more about the week ahead? Check out our Weekly Earnings Preview!

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In this article:

Topics:
IPO
Real Estate Management and Development
Food Products
Biotechnology
Home Furnishings
Aerospace
Industries:
Real Estate
Healthcare
Consumer Discretionary

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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