IPO Outlook: MAIA, MGAM

By Duncan Ferris

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In this week's preview of upcoming IPOs we take a look at MAIA Biotechnology and Mobile Global Esports.

A couple more companies are set to commence trading on major US indices despite 2022 lagging far behind recent years when it comes to IPO numbers. In fact, PWC has noted that global IPO issuance in the second quarter was over 70% lower than in 2021.

Some companies we have recently previewed, like Jianzhi Education Technology Group (NASDAQ: JZ) and NeoVolta (NASDAQ: NEOV) have delayed their initial IPO dates and could opt to list in the near future.

Additionally, some new companies are also opting to take the plunge. Here are the IPOs in focus for the week ahead:

MAIA Biotechnology (NYSEAMERICAN: MAIA)

The company is planning on joining the NYSE American index under the ticker symbol MAIA through an offering of 1,666,667 shares of common stock.

The business has said that it anticipates that the price of its shares will be between $5.00 and $7.00 per share. Consequently, the company appears on course to raise around $10m.

While no date appears to be set in stone for the IPO, it is anticipated that it could take place during the week ahead.

What Does MAIA Biotechnology Do?

MAIA is a clinical-stage biopharmaceutical company developing targeted immunotherapies for cancer.

Its lead asset is THIO, an investigational dual mechanism of action drug candidate incorporating telomere targeting and immunogenicity. THIO will enter Phase 2 human trials in Australia and Europe in the first half of 2022.

This will see patients with advanced Non-Small Cell Lung Cancer (NSCLC) being treated first with THIO followed a few days later by the immune checkpoint inhibitor Libtayo (cemiplimab) manufactured and commercialized by Regeneron.

Based on the clinical data generated by their THIO-101 trial, in late 2024 the business plans to seek an accelerated approval of THIO in the United States for the treatment of patients with advanced NSCLC.

In addition, the business is planning to start activities for a clinical trial of THIO in patients with advanced colorectal cancer (CRC) in the first quarter of 2023.

Who is Leading the MAIA IPO?

The company’s initial public offering is being run by ThinkEquity.

Use of MAIA IPO Proceeds

The company anticipates that between $10m and 15m of the proceeds will be used to fund the planned Phase 2 trial of THIO for NSCLC indication. Meanwhile approximately $2m to $4m will go towards funding the planned Phase 2 trial of THIO for CRC indication.

Beyond this, between $3m and $5m will fund pre-clinical to IND development for two second-generation telomere targeting compounds, while any remaining proceeds will fund MAIA Biotechnology’s other research and development activities, as well as for working capital and other general corporate purposes.

Mobile Global Esports (NASDAQ: MGAM)

MGAM is expected to go through with its IPO on Tuesday 26 July, with 1,500,000 shares of common stock being offered by the company and a further 2,300,000 shares of common stock being sold by selling shareholders.

The company is set to join the NASDAQ and its estimated price per share is between $4 and $5.

What Does Mobile Global Esports Do?

The company is focused on the esports industry, with special emphasis on India and other South Asian markets. The company has followed this route as it believes that the Indian market for esports, and particularly university esports events in India, represents one of the largest and fastest growing esports markets in the world.

The company says it is the only business in India to organize and sponsor an officially-sanctioned national championship for university esports.

The business was created in March 2021 to carry on and expand an esports business started by Sports Industry of India (SII) in 2016. SII holds a 14.5% minority common share interest in the company, but has no controlling interest.

Who is Leading the MGAM IPO?

Westpark Capital, Inc, is set to lead Mobile Global Esports’ launch on the public markets.

Use of MGAM IPO Proceeds

The company has estimated that the net proceeds, after deducting the underwriters’ $600,000 discount, the $120,000 non-accountable cost allowance and the payment of an estimated $300,000 in offering expenses, will be approximately $4,980,000.

Of this, more than half will go towards sales, general and administrative expenses, with these including staff retention in India and US corporate expenses. A further $787,000 is anticipated to be used for operating expenses, which include streaming expenses, cost of sales, marketing, event coordination and site expenses.

The remaining amount, which is anticipated to be nearly $1.5m, is earmarked for technology development.

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In this article:

Topics:
IPO
eSports
Biotechnology
Entertainment
Industries:
Communication Services
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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